Although a global Deloitte report points out a disturbing trend of declining female representation in senior management positions, there are also clear reasons for optimism. This is especially evident in Israel’s high-tech industry, where women are currently underrepresented but whose unique contributions, such as emotional intelligence and collaborative leadership, are becoming increasingly important. The key to redressing this imbalance lies in implementing expanded efforts. These include improved access to capital for women-led startups, dedicated mentorship programs, and gender-inclusive policies. Deloitte’s findings highlight the need for strategic efforts to address these barriers. In parallel with the efforts of organizations such as Yazamiyot, there is renewed optimism for a future where women’s representation in Israel’s high-tech industry will be commensurate with their invaluable contributions.
Recent findings from a Deloitte global report highlight an alarming trend of a declining proportion of women in senior management roles globally. This trend is evident in Israel, where there has been a significant decline in the proportion of women serving as CEOs or directors of publicly listed companies since 2018.
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Moran Massad Hadar and Hila Ovil Brenner
(Photo: Inga Abshalom Shirian/Yoram Reshef)
The report found that the tech industry has a relatively high proportion of women in management roles at 23.4%, but a more detailed analysis revealed disparities. The recent Comprehensive Report on Women in Tech 2024, compiled by the Innovation Agency’s Economic Research Department and the Aron Institute, revealed the stark reality that women still only make up one-third of all tech jobs, despite around 40% of women in the industry working in research and development (R&D).
This disparity extends beyond Israel’s borders, as evidenced by research from the RISE Israel Institute: While the US and Europe are slowly seeing an increase in female entrepreneurs, Israel lags behind, with only 16% of startups founded by women, compared to 26% in the US and 25% in Europe. Similarly, the percentage of female angel investors remains disproportionately low: 5% in Israel, 34% in the US, and 14% in the UK.
These statistics are shocking, as studies have consistently shown that companies with women in senior management roles outperform those without. Findings from the Peterson Institute of International Studies that women holding roughly 30% of management roles increases profits by 15%, underscoring the economic imperative of gender diversity.
Despite increasing efforts to support women in tech, women remain underrepresented compared to men in the sector, especially in the entrepreneurial ecosystem. Funding remains a significant barrier, with female-founded startups receiving a relatively low percentage of investment.
While the statistics say otherwise, significant efforts around the advancement of women lead to optimism for the future. And opportunities for a better future are being built around the growing demand for talent in the new world of AI.
We believe that the AI revolution has created a tremendous opportunity to drive change in Israel’s Startup Nation and increase the number of women in key positions. Indeed, in a world that is increasingly moving towards machine learning and algorithmic and robotic decision-making, women’s developed emotional intelligence offers a distinct advantage that machines cannot yet teach. Women’s unique contributions will be essential. Women’s innate strengths in creative thinking, emotional intelligence, and collaborative leadership are invaluable assets in an environment where AI-driven decision-making will increasingly become mainstream.
In other words, beyond the pertinent professional contributions, women’s advantage in terms of the soft skills they bring to the tech industry is more important than ever.
Expanding existing efforts and emphasizing new global opportunities could reshape the gender balance map in Israel’s tech industry. Education and innovation programs, for example, are essential to this mission and the rationale behind the vision of Israel’s leading female founder group, Yazamiyot. Over the past few months, Yazamiyot has run four different programs to develop female founders with a focus on AI (e.g., InnovateHer, in partnership with Mastercard).
To make this vision a reality, concrete action is needed to expand funding opportunities – that means special grants and investment funds dedicated to women-led startups to close the funding gap.
We need to expand funding incentives for diverse female startups and take steps to encourage venture capitalists to invest in startups that include women founders.
Additionally, dedicated mentorship and innovation programs should be set up to connect aspiring women entrepreneurs with successful women business leaders, partners and investors, and comprehensive training programs should be developed covering essential skills such as financial management, business planning and marketing.
We also need gender-sensitive policies that promote gender equality in entrepreneurship, including increased government support for women-led start-ups.
In conclusion, the Deloitte report shows statistics that, with the right environment and support, the percentage of women in key positions is declining, but this situation could change dramatically when AI trends are taken into account. By addressing key barriers, driving practical changes, and receiving support from organizations such as Yazamiyot, the female entrepreneurial environment in Israel is steadily improving, creating more opportunities for female entrepreneurs to thrive.
The authors are Moran Massad Hadar, high tech partner at Deloitte, and Hilla Ovir Brenner, partner at Arieli Capital and CEO of Yazamyot.
