Investors Are Systematically Undervaluing Talented Women Entrepreneurs

A 2025 NBER study finds that female entrepreneurs who launched a startup after a previous failure raised 53.3% less capital than men who were involved in the same failed companies.

This funding gap directly contributes to fewer women becoming serial entrepreneurs—women represent only 4% of founders who start three or more companies, compared with 16% of first-time founders.

Could there be double standards?

The theory goes that serial entrepreneurs, including the world’s richest person, Elon Musk, often need at least one go to get things right. Setbacks strengthen character and teach important lessons. As the NBER study shows, not everyone is blessed with this favorable interpretation.

The researchers found that despite raising less money, female founders had better success rates with their subsequent startups, suggesting investors are systematically undervaluing talented entrepreneurs just because they’re women. Meanwhile, the study found that male entrepreneurs actually benefit from failing—their deal sizes were 5% larger following unsuccessful exits.

Why the different treatment?  Find out here.   And this isn’t the first study to provide evidence that women entrepreneurs have fewer opportunities to succeed than men.

Let us be the change we want to see by working together to rise above the discrimination!