In a positive shift for gender diversity in the high-stakes world of entrepreneurship, investors are increasingly backing women-led ventures. Despite this progress, female founders still face significant challenges in securing funding for their startups. Several factors contribute to this disparity.
Investors often gravitate towards familiar patterns, which tend to favor male-led businesses. Additionally, women entrepreneurs face biases and a lack of representation in investment circles. Olenka Kacperczyk, Professor of Strategy and Entrepreneurship at London Business School, sheds light on her research findings and the reasons behind the gender gap in entrepreneurship.
While women make up half the population, among all the VC-backed ventures in her target research of the US, only 10% were founded by women. “There is a systematic segregation of women across ventures,” Olenka explains. Female entrepreneurs are challenged throughout the entire process of entrepreneurship.
Everything from administrative barriers to discriminatory wording in interviews for funding contributes to holding women back when it comes to starting their own ventures.
India supports female founders
Anuya Nisal, Founder and CEO of Serigen Mediproducts, shared her experiences as a woman entrepreneur in the biomedical sector.
Nisal and her co-founders are pioneering silk-based tissue engineering products that are high-performance and affordable. Their mission is to make advanced healthcare accessible and improve patient outcomes. Nisal shared that female founders often face higher standards and must demonstrate stronger metrics and resilience.
However, breaking through these barriers can lead to the creation of more sustainable businesses, as overcoming challenges becomes part of their operational fabric. Efforts to address the funding gap are gaining traction. Initiatives aimed at supporting women entrepreneurs include specialized funding programs, mentorship networks, and advocacy groups working to raise awareness about the importance of diversity in business.
As the business landscape evolves, there is a growing call for investors and policymakers to prioritize equitable funding practices. Ensuring that female-led startups receive adequate support is not just a matter of fairness, but a strategic economic move that can drive growth and innovation. With concerted efforts from investors, policymakers, and the broader business community, it is possible to bridge the funding gap and unlock the full potential of women entrepreneurs.
The shift towards supporting women-led ventures is a promising development, paving the way for more inclusive and innovative business practices.
Photo by; Mimi Thian on Unsplash