Building a more inclusive future for the Finnish startup industry

May 7

Making a change requires understanding the current situation. Collect data, find the problem, and set a clear goal.

This was our motivation last fall when we partnered with the Finnish Startup Community, Finnish Venture Capital Association, Finnish Business Angels Network (FiBAN), Slush, and Aalto Entrepreneurship Society to survey inappropriate behavior and practices within the Finnish startup industry and find ways to foster equality, inclusion, and diversity.

Diversity and inclusivity are not only vital for the well-being of people working in the startup field and a healthy ecosystem culture, but they are also strategically critical. Our companies operate better, grow faster, and build better foundations for economic growth when people from diverse backgrounds join the ecosystem as entrepreneurs, investors, and growth company employees.

Our pioneering survey received over 500 responses. For the first time, it provided comprehensive, ecosystem-wide data on the state of Diversity, Equity, and Inclusion (DEI) within the Finnish startup industry.

The results showed that there is still significant work to be done to create a safer, more equal environment for everyone. To continue to attract the brightest minds to join the ecosystem, we must strive to do better.

Some of our key findings

Women face inappropriate behaviour twice as often as men.

The gendered nature of inappropriate behaviour in the industry was a pervasive theme in the survey responses. 45% of survey respondents experienced inappropriate behaviour in the startup industry in the past five years. This figure rises to 63% for women, compared to 28% for men.

Young, international, and LGBTQ+ groups report more negative experiences in the Finnish startup ecosystem.

In addition to women, these groups also face marginalisation and inappropriate behaviour more often than others.
Younger and LGBTQ+ respondents reported encountering stereotyping, inappropriate jokes and comments much more frequently than others. Non-Finnish citizens reported exclusion, misinformation, and substandard compensation or opportunity information.
Respondents detailed how getting ahead in the industry relies on quiet knowledge and networks that they may not have access to.

Inappropriate behaviour is often linked to power dynamics

Inappropriate behaviour patterns in the industry are tied to socio-economic power dynamics and imbalances. Employees in startups had the most negative experiences, compared to founders and investors.
Respondents encountered inappropriate behaviour most commonly from those in leadership positions, and many open comments detailed abuses of power as a form of inappropriate behaviour.

Reporting inappropriate behaviour is perceived as risky, and often not possible

37% of respondents did not report the inappropriate behaviour or discrimination they encountered in the industry. Of those who did, 22% said no action was taken as a result, and another 22% said some action was taken but it was not sufficient. 41% didn't feel safe to report such behaviour.

Read the full report here

Our actions

Understanding the situation is the first step, action is the second.

We've established an Ethics Committee to foster diversity, equality, and inclusion in the Finnish startup ecosystem. This Committee gathers regularly and will provide practical guidance and processes, including how to use anonymous reporting channels. We're also collecting best practices for preventing and addressing inappropriate behavior.

We're also committed to regularly monitoring diversity, inclusion, and equality within our ecosystem. We aim to understand how our actions impact perceptions within the industry, and we plan to repeat our survey in a few years to track our progress.

These are our first actions and we will continue to bring in new solutions as we learn more. Luckily, we can learn from each other and the many existing good practices in our industry.

Our survey responses highlighted existing good practices and cultures in the industry. Respondents described an open, honest, and friendly culture as one of the strengths of the industry. Due to this open-mindedness and the use of English as the primary language, many respondents considered the startup industry as one of the most open and accessible industries in Finland for non-Finnish speakers.

Many respondents felt that there are existing role models for people from different backgrounds in the industry, and overall, the industry acknowledges the benefits of diversity and inclusion. The more established organisations often positively impact the ecosystem by doing DEI work and setting an example for creating successful and inclusive cultures.

We aim to build upon these positives.

Join us in shaping a better startup community

The Finnish startup industry is pioneering in many ways. Our ambition is to be the world's best and most inclusive work community too.

We must address each instance of harassment, inappropriate behavior, or power abuse promptly and effectively. We hope this survey's results and proposed actions will spark discussions and encourage everyone in our field to reevaluate and improve their processes.

We invite everyone in the industry to participate in this work. By collectively committing to this change, we can foster an environment where everyone feels valued, respected, and included. We're always open to ideas or suggestions on how to enhance our ecosystem. Please don't hesitate to share your thoughts with us at ethicscommittee@startup-saatio.fi.

- Josefiina, Startup Foundation CEO

While we gather our guidance and databank, check these resources to get started:

DEI in 2024: This is what you need to know by Inklusiiv

DEI Guidelines for Investors by FVCA