Progress and Trends in Gender Diversity on Private Company Boards
A collaborative report from illumyn Impact, formerly known as Him For Her, and Crunchbase provides an in-depth analysis of gender diversity in the boards of U.S.-based private companies. This ongoing research, first initiated in 2019, reveals notable advancements as well as current challenges in board diversity.
Overview of Findings
Since the inception of the benchmarking study, women’s representation on boards of private, venture-backed companies has seen a significant increase from 7% in 2019 to 17% in 2024. Concurrently, the prevalence of all-male boards has decreased from 60% to 32%. While these improvements indicate positive trends, recent data suggests a stall in progress, as the diversity metrics among 807 heavily funded private companies with at least $100 million in cumulative funding show no substantial change compared to the previous year.
Challenges Influencing Board Development
As the 2023 analysis highlights, a sluggish IPO market and decreased early-stage venture funding in 2024 have impacted board development priorities. Without the impetus of an imminent IPO or robust capital influx, many leaders and their boards are likely sidestepping board recruitment in favor of immediate operational concerns.
Positive Trends Despite Stagnation
Several encouraging trends indicate potential resurgence in board diversity:
- Younger companies are exhibiting higher rates of gender diversity among board members.
- The number of women holding director positions facilitated by investors has markedly increased.
- Fewer female directors are alone in their roles, thereby enhancing networking opportunities for aspiring candidates.
As venture capital funding experiences revitalization and the IPO environment improves, an uptick in women’s representation in high-growth private company boards is anticipated.
Key Statistics
- Women now occupy 17% of board seats, up from 7% in 2019.
- From 2019 to 2024, the number of women on boards increased by 0.65 members, averaging roughly 1.2 out of 6.9 board members.
- 32% of companies have exclusively male boards, down from 60% five years ago.
- The presence of women of color on company boards has risen to 23%, compared to 19% in 2020.
- Women represent 28% of independent directors, 13% of investor directors, and 10% of executive directors.
- Fewer women (32%) now hold board positions as the only female members, improving from 44% in 2020.
- There is a significant reduction of all-male boards among companies founded after 2015 (26%) compared to those established prior (37%).
- The likelihood of younger companies having female investors on their boards is nearly double that of older companies (17% vs. 10%).
Methodological Approach
The methodology for this analysis mirrors that of previous studies, analyzing board compositions through the lens of publicly available data and information from the Crunchbase database. In total, 807 U.S.-based private companies founded since 2003 and securing at least $100 million in cumulative funding were included, ensuring that board profiles were current through company websites.
The researchers categorized board members into executive, investor, or independent director roles, focusing solely on board directors while excluding observers and advisors. Gender identity was determined through professional profiles and visual identification, while racial and ethnic identities were verified using self-identification and contextual data. The inclusion criteria adhered to the U.S. Census Bureau’s classification for people of color.
About the Institutions Involved
illumyn Impact is a dedicated social impact organization striving to enhance diversity within board ecosystems across various sectors, including healthcare, artificial intelligence, and climate change. By leveraging a growing network of over 8,000 underrepresented executives, one-third of whom are women of color, the organization aims to facilitate diverse board appointments through targeted introductions.
Crunchbase operates as a predictive intelligence platform, offering insights into private market movements by synthesizing live company data and market trends. It serves as a vital resource for investors and analysts seeking to capitalize on emerging opportunities.
