Success Story with Scott D. Clary

Episode: Lessons – Why Women Get 2% of VC Funding
Guest: Julia Boorstin, CNBC Senior Correspondent
Date: December 26, 2025

Brief Overview

In this “Lessons” episode, Scott D. Clary sits down with Julia Boorstin, CNBC Senior Correspondent and author, to unpack the persistent gender equity gap in the workplace, particularly focusing on why women receive only 2-3% of venture capital (VC) funding. The conversation explores systemic barriers, the “broken rung” in career advancement, unconscious bias and pattern matching in VC, and actionable strategies for change. Boorstin draws on research and real-life stories of female founders to highlight the financial and cultural advantages of embracing diversity in leadership and investment.

Key Discussion Points & Insights

Gender Equity in Education & Early Career Advancement ([00:43])

• Women surpass men in higher education: Women graduate from college and attend grad school at rates equal to or higher than men.
• Persistent gaps in advancement: Despite starting careers in equal numbers, women do not reach top corporate positions at the same rate as men.
• The “broken rung” phenomenon: Early-career promotion gaps, especially into first-level management, limit future advancement for women—even though performance isn’t the issue.
• Structural and societal factors: Parental leave and career interruptions contribute, but systematic issues are deeper and multifaceted.

“Women actually graduate from college in higher numbers than men... but one of the key theories... is this idea of a broken rung.”
– Julia Boorstin [00:43]

The Venture Capital Gender Gap ([01:50])

• Tech industry as a case study: Tech has the largest gender gap in VC funding compared to any sector.
• Massive influence of tech companies: All major tech startups rely on VC funding to scale, amplifying the impact of such gaps on society and the economy.
• Startling statistics:
  • Over the past 10 years, women-founded companies have received 3% or less of all VC money; in some years, as little as 2%.
  • Women get 6% of deals, but only 3% of VC dollars, indicating they also receive smaller checks.

“If you look at billions of dollars...3% or so of that money goes to companies with female founders.”
– Julia Boorstin [01:50]

“If they're getting 6% of deals and only 3% of dollars, it means the checks are on average smaller.”
– Julia Boorstin [03:49]

Causes: Pattern Matching & Unconscious Bias in VC ([04:12])

• Pattern matching explained: Investors tend to fund people who “look like” previous successful founders—often white men from certain backgrounds.
• Unconscious bias and cultural affinity: Decisions are shaped by comfort, personal similarities, and the tendency to invest in those they can relate to.
• Feedback loops worsen the problem: As VCs seek replicas of prior success, the lack of female role models perpetuates exclusion.
• Case study – First Round Capital:
  • Internal review revealed female-founded startups were outperforming expectations.
  • Changing hiring practices and deal assessment systems (e.g., written pitches/opinions to reduce loud voices dominating) led to increased diversity and improved results.

“Pattern matching is this idea that if you’re a VC... you should invest in someone who matches a pattern. If you’re looking at that subset of a founder, you’re going to be looking mostly at men.”
– Julia Boorstin [04:12]

“He found that the female-founded investments… tended to perform better… There are systems they could put in place to make sure they weren’t just investing in the obvious thing based on the pattern.”
– Julia Boorstin [06:15]

Potential Solutions and the Path Forward ([12:18])

• Systemic change requires big players: The industry won’t change solely through new, small women-led VC funds; scale comes from large funds recognizing the financial upside.
• Data-driven arguments: Once major funds see that diversity equals higher returns, systemic shifts become realistic.
• Both/And approach needed: Encourage more women-led funds and push existing funds to diversify leadership and approaches.

“The only way you’re really going to see massive change… is if you have some of the biggest funds… identify the value, the financial value. This is not about helping the world. This is about—they will make more money if they invest in a more diverse set of companies.”
– Julia Boorstin [12:18]

Why Some Women Succeed in Raising VC ([13:05] & [13:45])

• Unique leadership styles: Success isn’t about mimicking “tech bro” or traditional aggressive leadership models. Diverse leadership traits—resilience, adaptability, collaboration—are assets.
• Inspirational female founder stories: Boorstin’s research features women who outperformed during crises, reformed sectors, and led in ways undervalued by the archetype of a “leader.”
• Throw out stereotypes: The data and stories repeatedly show that leadership traits aren’t confined to a type or gender.

“Leadership doesn’t have to just be one thing. This archetype of male, aggressive, top-down, hierarchical management… that is really not the way things work—certainly not anymore.”
– Julia Boorstin [13:54]

“It’s amazing what business school professors have been up to, but also to learn that some of these traits... that maybe we don’t associate with leadership or business success are actually hugely valuable. And we should just throw out the stereotypes of what a leader looks like.”
– Julia Boorstin [14:55]

Notable Quotes & Memorable Moments

• “Women get promoted at the lower levels, but then there's... a leap to more management level where often women just don't get those promotions.”
  – Julia Boorstin [00:43]
• “I wanted to look at this sector because this is the sector with the craziest gender gap.”
  – Julia Boorstin [01:32]
• “There’s a huge opportunity to break the pattern. There’s financial opportunity in breaking the pattern.”
  – Julia Boorstin [06:56]
• “We should just throw out the stereotypes of what a leader looks like because it has nothing to do with what in reality actually works.”
  – Julia Boorstin [14:55]

Important Timestamps

| Timestamp | Segment/Topic | |-----------|--------------| | 00:43 | The “broken rung” and educational parity vs. workplace inequity | | 01:50 | Shocking VC funding gap for women in tech | | 03:49 | Women receive smaller checks when they do get venture funding | | 04:12 | Pattern matching and unconscious bias in venture capital | | 06:15 | First Round Capital’s internal audit and new anti-bias systems | | 12:18 | What’s needed for real systemic change in VC allocation | | 13:45 | Traits of successful female founders; dismantling stereotypes | | 14:55 | Why diverse leadership styles work and are needed |

Conclusion

This episode delivers a clear-eyed exploration into the gender funding gap in tech and venture capital, surfacing both the deeply rooted biases and the powerful case for change—not as an act of charity, but as a business imperative. Through both data and the stories of exceptional women founders, Julia Boorstin and Scott D. Clary encourage listeners to recognize, challenge, and transform outdated systems for a more equitable and profitable future.