A timely article from The Financial Times outlines an analysis of the ever-widening gap that remains between the number of investors that roll the dice on male-founded companies versus female-founded companies. The exposé by Kate Bassett, entitled, “Female founders seek remedies to lack of backers,” provides a detailed state of the union on this glaring inequality. A sample of some of the unsettling findings that they share include,
- According to the data group PitchBook, the percentage of venture capital funding that went to female-led start-ups in the United States dropped from 2.4% in 2021 to 1.9% in 2022. “This number increased to 17.2% if the management team included at least one man.”
- In a 2022 report released by European Women in VC, “in Europe, only 15% of venture capital firm general partners are women.”
- “Investors tend to be more likely to interrogate a female founder’s business projections and ask questions around downside risk…As a result, female founders lower their business projections, their valuation, and are ‘less ambitious in their pitch.’” says Sutin Yang, head of scale-ups at the UK not-for-profit organization, VirginStartUp.
wegg®’s credo is to provide women founders with the skills, confidence, and resources that will aid them in closing this financial gap. The discouraging plight that women founders are often met with has not stalled their efforts in the slightest. Bassett notes that “A recent report by Global Entrepreneurship Monitor found the number of women in upper-middle-income countries starting a business rose by 11% from 2019 to 2021 — the height of the pandemic. And the number of women intending to start a business also rose, by 4%, in that time.”
We are hopeful that through the persistent education of society and women helping women pay it forward, the playing field will be leveled. Refusing to become disheartened in the face of demoralizing facts will prove to be a victorious effort on the part of us all in time.