Where Female Entrepreneurs Get Less Funding

Women receive a small section of the U.S. venture capital pie. Some say it is as little as 2 percent while others point out that the number is closer to 20 percent if we count teams that include women. Still though, however you slice it, women get less.

Women’s Venture Capital Funding

In every category, we have the dollar scales tilted toward men. For AI funding in the UK, just .7% went to female founders since 2010. Correspondingly, all male teams got 80 percent of the VC funding from 2012 to 2022. And, even when women got the money, at six times less capital per deal than their UK male counterparts, it was much less.

In the U.S.

The Founders

Whether we look at the all-female cohort or male and female co-founders, still, they raised a small sliver of the money:

The Industry

Meanwhile, the industry numbers and dollars for female founded startups range from software (12,039; $89.9B) and HC (Healthcare) Services and Systems (3,555; $27.6B) to IT hardware (857; $7.9B) and energy (326; $4.6B):

U.S. States

With a deal count at 12,549, California tops the list:

In Europe

The Founders

Like the U.S. the percents are small:

The Industry

Somewhat less, the European industry numbers and dollars for female founded start-ups range from software at 7,245 and €20.9B to energy with 261 valued at €1.18B:

Where?

Here, at 7,827 the UK has the most female founded start-ups. Next, though, we plunge to 3,289 for France:

Our Bottom Line: Production Possibilities

In 2019, the Boston Consulting Group estimated how much higher female equality would boost regional GDPs:

Whenever any group is excluded, everyone suffers from the decline in business activity. Summarized through a production possibilities graph, the curve illustrates the maximum capability of the economy using all existing land, labor, and capital. Then, through a dot inside the curve, we can show underutilization:

So yes, we constrain all economies where women’s venture capital funding is small.

My sources and more: Good for the facts, BCG, this paper, Fast Company, and the WEF/Pitchbook were today’s sources. Please note that the Pitchfork data in their graphics is through March 31, 2024.