Swan NeuroTech, a Pittsburgh-based startup developing treatments for nerve damage, recently won a competition focused on companies founded by people who, demographically, are less likely to raise venture capital funding. Startup302, based in Delaware, awards grants and provides networking opportunities to women, underrepresented ethnic backgrounds and members of the LGBTQ+ community.
Swan took first prize in the life sciences category and received a $20,000 non-diluted grant. Founder and CSO Kacey Marra said that events like these are an important step to elevating underrepresented demographics in the technology sector.
"I found it an extremely rewarding experience to be able to meet other founders, other female founders," Marra said. "The keynote speaker, Erika Lucas, she said that it is well known that of venture capitalist funding only 2% goes to female founded companies. It was really a great opportunity to be able to meet other founders and other female founders, grow my network and now we can support each other."
The venture capital ecosystem is heavily disproportionately male. A study from Harvard found that approximately 11% of investing partners in the United States at VC firms are women. This applies to the tech sector as well. An annual report from the Computer Technology Industry Association found that in Pittsburgh, women make up 25% of tech occupations in the city of Pittsburgh and 27% nationally while making up 49% of the overall workforce in both statistics.
Noah Olson, a representative for the Delaware economic group behind the competition, emphasized that while the competition is aimed at elevating underrepresented voices, the selection process is still rigorous. Alongside a variety of factors, Olson said that "the real important metric is if they are building a scalable company" and that grants are targeted to help businesses connect with investors in the future.
"Unfortunately, I don't have the prize pool to write venture sized checks," Olson said. "But we're writing checks that are non-dilutive capital and they're meant to help companies achieve a goal, reach a next milestone and prepare them to go out and seek venture capital if that's an appropriate growth point for the company."
Marra echoed his sentiment.
"Events like this are great, where there is money involved that can be invested into female owned businesses that is non-diluted," Marra said. "That funding will allow me to attend, perhaps, other trade shows or other opportunities where I can meet with investors that I may have not had before."
