The Ups and Downs of Q3 VC Data for Female Business Founders

Data shows that all-female-founded U.S. companies are raising less money this year compared to the previous, which is maybe not surprising given the present economic climate.

Funding for female-led businesses decreased from 2.4% last year to 1.9% as of the third quarter of this year. If we also consider racial disparities, that figure drops to an already dismal level.

A report says that in 2016, all-female teams accounted for 2.4% of all startups, while Black and Latina women raised about 0.05% and 0.004% of all venture capital in the United States, respectively.

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It has long been feared that when the venture market slows, investors will gravitate back to the deals and connections they know and trust from the most successful founders, leaving the most marginalized groups out in the cold. The gap between successful entrepreneurs and those who are still struggling is as wide as ever, but there is good news on the horizon.

Female Business Founders
Female Business Founders

In the United States, funding for startups with only female founders is somewhat ahead of where it was at this time in 2020. (Considering the current state of the market, it’s hardly surprising that current statistics are paltry in comparison to last year’s record-breaking levels.)

Out of the total $194.9 billion raised in the United States this year, $3.6 billion was raised by all-female teams through 742 separate agreements. From January through December 2020, 771 deals totaling $3.3 billion were closed by all-female teams. This was out of a total of $168.7 billion. 2021 was clearly an anomaly year, as 1,132 trades involving just women brought in $8 billion.

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