The GHWIN Blog

The Funding Disparity: A Statistical Overview

The underrepresentation of female founders in venture capital funding remains a pressing issue. Recent data underscores that there hasn’t been any signs of the funding gap closing. 

  • Minimal Capital Allocation: In 2023, startups founded solely by women received just 2% of all VC dollars in the United States. This figure saw a slight increase to 2.2% in the first half of 2024, indicating a marginal improvement but still highlighting a significant gap.  

  • Deal Volume Growth: While the total capital invested remains low, the number of deals involving female-founded startups has shown growth. Between 2008 and 2024, the share of VC deals for women-only startups in Europe increased from 2.7% to 5%, suggesting a positive trend in deal volume over the longer term. How can we celebrate a number that took almost 20 years to improve such a small amount? 

  • Performance Metrics: Notably, research indicates that female-led tech teams often outperform their male counterparts. A study by the Kauffman Foundation found that such teams generated a 35% higher return on investment, challenging the misconception that female-led ventures are less profitable. 

Systemic Barriers Facing Female Founders 

Several factors contribute to the funding challenges experienced by female entrepreneurs: 

  • Investor Homophily: The tendency of investors to fund individuals who resemble themselves often results in male investors predominantly supporting male entrepreneurs. Since the majority of VC decision-makers are men, this perpetuates a cycle where female founders receive less funding. 

  • Biased Questioning: Female founders frequently face skepticism during pitch sessions. Investors are more likely to pose risk-related questions to women, while men receive growth-oriented inquiries. This line of questioning can influence the perception of a startup's potential and, consequently, funding decisions.  

  • Stereotyping and Misconceptions: Women-led startups, especially in sectors like women's health tech, often encounter biases that question their profitability and scalability. For instance, femtech companies with female founders are perceived as ideologically driven rather than profit-focused, leading to less capital investment.  

Actions Investors Can Take to Drive Change

To bridge the funding gap and support female entrepreneurs, investors can implement several strategies: 

  1. Diversify Investment Teams: By including more women and individuals from diverse backgrounds in decision-making roles, firms can reduce unconscious biases and broaden their investment perspectives. 

  2. Implement Blind Evaluation Processes: Adopting practices where pitches are reviewed without revealing the founder's identity can help focus attention on the business idea's merit, minimizing gender-based prejudices.  

  3. Establish Funds Dedicated to Female Founders: Creating funds specifically aimed at supporting women-led startups can provide the necessary capital and resources to help these businesses thrive. Initiatives like the Female Founders Fund exemplify this approach by investing exclusively in female-founded companies.  

  4. Educate and Train Investment Teams: Providing training on recognizing and mitigating biases can foster a more inclusive investment culture, ensuring that decisions are based on potential and performance rather than preconceived notions. 

GHWIN: Championing Female Entrepreneurs

GHWIN is at the forefront of promoting inclusivity within the venture capital landscape. Co-founded by Lauren Kane, who brings a profound passion for supporting underrepresented founders, GHWIN is committed to channeling resources into ventures that drive both individual and societal wellness.  

By fostering a community where visionary leaders and investors unite, GHWIN not only provides capital but also mentorship and strategic guidance to female entrepreneurs. This holistic support system empowers women-led startups to overcome traditional barriers, scale their innovations, and achieve sustainable growth. 

Conclusion

The journey toward equitable venture capital funding for female founders is ongoing. While recent statistics from 2023 and 2024 reveal persistent disparities, they also highlight areas of progress and opportunity. By acknowledging systemic biases and implementing targeted strategies, investors can play a pivotal role in reshaping the investment landscape. Organizations like GHWIN exemplify how dedicated efforts can lead to meaningful change, ensuring that female entrepreneurs receive the support and recognition they deserve. 

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Breaking Barriers: Empowering Female Founders in Venture Capital

March 2025

In recent years, the entrepreneurial landscape has witnessed a surge of innovative female founders launching startups across various sectors. Despite their remarkable potential and proven track records, these women continue to face significant challenges in securing venture capital (VC) funding. This blog post delves into the latest statistics from 2023 and 2024, highlights the systemic barriers female entrepreneurs encounter, and proposes actionable steps investors can take to foster a more inclusive investment ecosystem. Additionally, we'll explore how GHWIN is contributing to this transformative change.