VC Investment Gender Bias
Learn what you can do
“VC Funding for women actually dipped from 2.2% in 2020 to 2.0% in 2021, the lowest since 2016” and still remains at 2% as of 2022″ [1,2]
our mission
Despite the fact that women-owned businesses represent a growing and significant sector of the economy, female founders continue to receive a disproportionately small share of VC funding. Studies have shown that female entrepreneurs face barriers to accessing VC funding such as gender bias and stereotyping. VCs subconsciously follow an investment pattern with certain competencies in mind which are mostly found in male entrepreneurs.
The solution is to break ongoing pattern of investment by VCs and recognising the competencies that women entrepreneurs bring to the table. Our research demonstrates how investment on the basis of these competencies ensures wholesome success.
“According to the Harvard Business Review, 2 out of 5 new CEOs fail in their first 18 months on the job. It appears that the major reason for the failure has nothing to do with competence, or knowledge, or experience, but rather with hubris and ego and a leadership style out of touch with modern times.”[1]
The Problem
Female Led Startups are being underinvested in. Many believe it’s a pipeline problem and there aren’t enough female CEO’s pitching to VCs. However findings show they are pitching, but don’t receive funds. Instead VCs are generally investing in male CEOs and more often those who show narcissism. To read more about what is happening in the VC world and why women CEOs are underinvested in read the page in the link below.
WHAT IS HAPPENING?
The Solution
The solution is being able to understand and identify undervalued characteristics of women that are overlooked, yet rather help them run companies that are worth Billions. We conducted research to help identify what indicates the success of a Female Led startup. From our analysis of Female Unicorn Founders we identified a pattern of competencies they demonstrate and found scientific studies that show they exist more often in women than men don’t have, such as being more empathic and having more brain connectivity. Read more about what these are below:
WHAT VCS SHOULD LOOK FOR
Connective Leadership 