Are women really founding 55% of China’s internet startups?

Copyright: elwynn / 123RF Stock Photo

On Monday, Bloomberg ran a fascinating piece on the growing role of women in China’s venture capital industry. While the focus of the article is (understandably) VCs, there’s also this interesting tidbit about internet startups:

The Chinese government estimates females found 55 percent of new Internet companies and more than a quarter of all entrepreneurs are women.

Needless to say, the assertion that 55 percent of China’s internet startups are founded by women caught some eyes in male-dominated tech sectors across the globe. Other outlets like Silicon Republic have already started to run with the story, putting the high percentage right in the headline.

If it’s accurate, it would be an impressive accomplishment for China. But where does this “55 percent” number come from, and what does it mean? Are 55 percent of China’s internet startup founders really women?

Do China’s internet startups look like this, or are more women than men really involved? Copyright: sjenner13 / 123RF Stock Photo

Whence 55%?

Although several articles seem to cite this book as the source of the 55 percent figure, it actually comes from a white paper called “Gender Equality and Women’s Development in China” published by the Information Office of China’s State Council one year ago.

Does ‘new internet businesses’ mean real internet startups, or any small business that uses the web?

The white paper asserts: “About 55 percent of new Internet businesses are being founded by women.” It doesn’t provide any additional details or elucidate how its authors came to that number.

This phrasing raises a number of questions. Does “new internet businesses” mean real startups (the kind that build their own websites and try to raise VC funding) or does it include any new business relying on the internet (like Taobao-based C2C clothing shops)? Are startups with founder teams that have more men than women still counted towards that 55 percent number as long as there’s at least one woman on the team? The white paper offers no answers.

It’s probably worth noting that the government has reason to be generous in its definitions. Just before citing the 55 percent figure, the white paper notes that “The government has initiated an action plan to promote entrepreneurship and innovation among women, encouraging women to seek employment in emerging industries.” Being able to say that a high percentage of internet startups are founded by women certainly makes it look like the government’s action plan has been effective.

Is it actually true?