Women and funding, whats the score card?

Women are the fastest growing group of entrepreneurs, and numerous reports show that women-led businesses are outperforming their male peers in many VC portfolios, and do so with far less resources.

Despite all this, it’s not all sunshine and roses in the women entrepreneurs’universe.

The case of women and funding doesn’t seemed to improve despite the numerous efforts to address the gender disparity, with research showing women-funded startups get less than 10% of total funds raised by startups annually.

A quick look at the Indian startup eco-system (which is a reflection of most ecosystems around the world) paints a dreary picture.

Here are 5 key statics as highlighted by YourStory.

  • The total amount of funding raised by startups with a woman founder or co-founder between January and September comprised just 5.2 percent of the $9.14 billion raised in overall funding. This might seem like an improvement from the 2% raised last year, but this is an astonishingly disproportional ratio.
  • Of the over 600 startups that have raised cash this year, only 102 were with women founders/co-founders.
  • Women solo founders accounted for just 20 of these deals. While 10 had undisclosed amounts, the remaining mopped up $50.85 million in funding. This is much lower than the $148.95 million raised across 22 deals last year.
  • The maximum funding raised by a company with a solo woman founder was omnichannel beauty products platform Nykaa.
  • Women-led companies saw a decline in the number of pre-Series A and Series A rounds, but Series B, C and D saw an increase, as did private equity – a clear indication that women-led startups are able to scale.

Whether the problem with the low funding numbers is the fact that there aren’t enough women entrepreneurs coming up to take up more potions, or the unconscious bias said to exist due to VCs apprehension with women founders’ commitment to their ventures, the numbers don’t lie and much more needs to be done to break the barriers and ensure women get their due, as innovators and change makers.

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