Women not doing it for themselves

It is well documented that women have trouble breaking through the glass ceiling at large companies. But it is perhaps even more dispiriting to discover that women are not doing it for themselves either. Library House data shows that 95 per cent of the chief executives at venture-backed companies are men. Even worse, in 2006, 97 per cent of newly appointed chief executives were men.

So much is made of women quitting after getting fed up with failing to progress in large organisations, that a surfeit of female chief executives might have been expected in smaller firms, particularly start-ups. Yet, the Library House figures show that women fare only marginally better than in the public company world where they run 2 per cent of Fortune 500 companies. (Incidentally, this figure may get worse - a recent survey by PwC showed a 40 per cent fall over the last five years in women holding senior management positions at the 350 biggest UK-listed companies).

There appears to be no rational explanation for female entrepreneurs not leading companies. The Library House data shows that companies run by women perform ahead of companies run by men. Of 600 venture-backed companies across Europe with disclosed revenues and investment histories, those run by female chief executives delivered higher revenues using less capital. The average company run by a woman had annual revenues of €12.5m last year compared to €11m for those run by men. Extraordinarily, this was achieved using an average of just €9m of committed capital compared to more than €14m in companies run by men. Was there ever such a stark example of why women should be running more companies?

Doug Richard, chairman of Library House certainly thinks they should be. He says: “It is surprising to see such a lack of women in senior positions. If women are delivering such good results why are there so few in top positions around Europe?”

Female entrepreneurs are quick to point out that the most common reason given for the lack of representation in the top echelons – childbirth and the raising of a family – does not always hold true. Polly Gowers, chief executive of ethical internet search engine company, Everyclick.com, says: “I had a baby three weeks ago and now we’re in the middle of a £3m funding round. Women can make it in venture-backed companies but sometimes you just have to fight a bit harder.”

Despite the shocking data, there is some reason to believe that future figures will show a partial rebalancing between the sexes. The anecdotal trend of women leaving big companies to set up their own firms has yet to be translated into hard evidence. But it takes time for a company to take off – many operate as one-person outfits for some period of time before they grow and become big enough to pique the interest of venture capitalists.

Let’s at least hope this is true. It is clear that a corporate landscape with more input from women would almost certainly be more efficient and more profitable.

The Week's Deals

Twenty-eight companies gained venture funding this week, eleven were of undisclosed value. The deals raised a total of €182.2m, which is €10.7m on average.

KNEIP Communication, the Luxembourg-based business process outsourcing company for the investment fund industry, has raised €37m from 3i. KNEIP acts as an administrative agent for fund administrators, fund promoters and asset management companies. The investment, for a minority-stake, will be used to help KNEIP increase its service offering and expand its geographical reach.

Joost, the Netherlands-based internet television service set up by the co-founders of Skype, has raised $45m (€33.2m) from Index Ventures, Sequoia Capital, CBS Corporation, Viacom and Li Ka Shing Foundation. The investors “selected” have all taken small minority stakes. Joost, which launched its service recently, is aiming to provide a new way of watching TV that combines the best of full-screen television with the interactive and community benefits of the internet.

Xelerated, the US and Sweden-based fabless semiconductor company, has raised $23m (€16.9m) from Sixth Swedish National Pension Fund, Accel Partners, Alta Partners, Amadeus Capital Partners and Atlas Venture. Xelerated’s products target network equipment for the enterprise and metro ethernet markets. The new funding will mainly be used to expand sales and support as well as for development of new products.

VideoJug Corporation, the UK-based video hosting site for ‘how-to’ videos, has raised £15m (€22m) from Sloane Robinson Private Equity, Jeremy Coller and other private investors. VideoJug allows users to browse through videos that provide solutions to daily problems ranging from how to perform the perfect golf swing to how to take your own blood pressure. The company operates a dual model of producing its own videos and also allowing users to upload their own content. Revenue is expected to come from advertising, syndicating content and producing corporate videos.

Elsewhere, JAJAH, the US and Israel-based internet telephone company, raised $20m (€14.8m) in series C funding from Intel Capital and other undisclosed investors; Collactive, the Israel-based software services company, raised an undisclosed amount from Sequoia Capital; and Cape Clear Software, the US and Ireland-based enterprise software company, raised €3.7m from ACT Venture Capital, Accel Partners, Greylock Partners and InterWest Partners.

See below for a complete list of deal headlines.

Did we miss anything? If you think we have missed a deal or know of a deal that is about to close then send us your deal news.

The Week's Exits

genOway, the France-based biotechnology company, has raised about €6m through an IPO on Alternext. genOway designs, develops and markets technologies and biological models designed to aid in drug screening, target validation and pharmacological/toxicological studies. The funding will be used to support the company’s growth strategy through increasing its North-America and Asian market shares.

Webraska, the France-based provider of mobile GPS navigation products and geospatial software, has been acquired by France-based Sanef, the highway and telematics operator. The acquisition is designed to allow Sanef to enter the satellite navigation market, broaden its offering to include mobile phones equipped with GPS chipsets, and create a complete service platform. Financial terms of the deal were not disclosed.

Zenops, the mobile gaming company, has acquired In-Fusio and Filao. All three companies are based in France. The acquisitions give Zenops access to a catalogue of game titles such as Asterix, Tour de France, Line Rider and Brain Trainer as well as new service applications for carriers and handset manufacturers.

People Moves

UDCast, the France-based provider of mobile IPTV services, has appointed Dr Jas Saini as chief executive. Dr Saini has more than 25 years’ experience in the electronics industry having previously held executive positions at NDS, Thomson Multimedia and Irdeto.

matrix42, the Germany-based developer of system management software, has appointed Chris Tamblyn as chief executive of its US subsidiary, which was set up last year. The company has also revealed that, in line with the stronger focus on new markets, executive chairman Helmut Schönherr has left the company.

Most Accessed Companies

Hydrogen Solar, the UK-based clean technology company, has received a lot of attention recently. Hydrogen Solar is developing a hydrogen-generation system that captures sunlight and uses the energy to break water molecules into hydrogen and oxygen. The company says the rate of the process is commercially competitive and the hydrogen is of high purity. Hydrogen Solar is backed by E-Synergy and private investors.

Ball-IT, the Finland-based developer of real-time wireless sensing products, has also received a lot of attention recently. Ball-IT’s main product is a wireless smart-ball that senses position, direction, speed and acceleration. About the size of a golf ball, it works as a portable computer mouse, measuring tape, 3D compass, 3D model controller, pedometer and fitness logger, and remote control for a PC. Ball-IT is backed by Finland-based early stage investor Aura Capital.

Other companies generating interest recently include Revolymer, Everyclick, and Global Silicon.