All U.S. startups with all-female teams in 2022 will account for about $4.5 billion of the $238.3 billion in venture capital funding allocated that year, according to the latest Pitchbook data records. Received only 1.9%.
That decline is notable from the 2.4% all-female team which has been raised in 2021. A decline was expected, but the economic climate in 2022 will see bears, busts and winters. In fact, with the exception of 2016, the last time an all-female-led startup in the U.S. raised such a low percentage was in 2012, when funding declined due to economic uncertainty and elections. It was another time.
U.S. Women’s Startup Raises 1.9% of Total Capital Fund
Ironically, we find that funding percentages increase when “all-female teams” have at least one male founder. This shows the importance of having a man in the room. In 2022, only 1.9% of all female teams had raised VC funding, but that percentage jumped to 17.2% when teams included both men and women. This trend has been consistent for about ten years now.
partner Anthemis group, loose Fox blader She told TechCrunch about the discrimination. Investing in women is still perceived as risky. LPs must look beyond manager diversity to investment portfolios if they want to change this industry. 1.9% is deplorable.”
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The good news, however, is that total capital invested in female-founded companies, including all mixed-gender teams, is at the second-highest level, with a record-breaking year of 2021 still on top. It also maintains her second highest number of female-founded team deals with 1,001, behind her 1,190 closed in 2021.
The 1.9% of all women’s team venture capital funding raised in the US can be considered slightly better than the approximately 1.1% obtained in Europe. Although Europe and North America are culturally distant, they are not all that different when it comes to discrimination based on gender.
Founder of social network apps CommuniaOlivia Deramus Unless these systemic issues are addressed, importantly in the investment industry, moving the needle toward equality will be very difficult, she told TechCrunch. “Given that deep-rooted discrimination against women still lingers and founders often create solutions to problems we’ve experienced first-hand, our company is not valued or understood by male investors. It might solve your requirement. Companies may have even more compelling growth, traction, and metrics than startups run by all-male founders.”
Kelly, Founder of Fintech Guava Ifil She said she wasn’t surprised that funding for female founders was withdrawn, adding: Open. She added that it’s a very well-known fact that women-led businesses have shown higher success rates over the years. Facts alone are not enough for investors with a misogynistic mindset.
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