In the wake of the #MeToo era, gender equality has successfully gained a bigger space within the public discourse around the world. However, tech startups, supposedly one of the most innovative industries to lead our future, are still heavily male-dominated, with a study in 2017 revealing a meager 17% female ratio in Silicon Valley startups that have less than 100 employees (Bradshaw & Kwong 2017). This research aims to understand the underlying reasons for the gross underrepresentation of women in the tech startup industry and find practical solutions to improve the status quo. In the first part of the study, based on literature review, the ‘Brotopian Cycle is proposed as a framework to understand the vicious cycle. From the macro societal level (Media and Education) to the individual startup level (Recruitment and Retention), the vicious cycle continuously reinforces and recreates gender stereotypes that involuntarily but systematically filter qualified women out of the industry. The second part of the study focuses on practical methods to improve gender inequality in tech startups during Recruitment and Retention phases. Findings from a combination of theoretical and practical research through literature review and qualitative interviews suggest that factors such as the lack of management and leadership experience common in young tech startups create, reinforce, and/or neglect gender issues in the startup workplace. The research provides actionable recommendations for startups to follow in order to actively break the vicious cycle and point to possible areas for further research.