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Female - founded company in the U.S. raise $ 44.4 billion out of the $ 170.59 billion in venture capital allocated last year . ship’s company with founding teams that are all woman raise around $ 3.1 billion — or 1.8 % — which is a magnetic dip from $ 5.1 billion ( 2.1 % ) in 2022 and from the $ 7.3 billion ( also 2.1 % ) raised in 2021 ’s bull market .
In fact , this is the lowest percentage of speculation capital apportion to such teams since 2016 , when they pick up 1.6 % of all venture funds . There is good intelligence for interracial - gender origination teams , however . Such team raised 26.1 % of all speculation capital letter allocated this yr , a sizable jump from the 18.2 % they picked up last year . This follows the traffic pattern that women beginner still get along better with a male co - founder in the mix .
Kyle Stanford , chair VC psychoanalyst at PitchBook , told TechCrunch+ that it ’s difficult to pinpoint a single understanding why fund to women founders has dip a bit , but he added that the fall in deal counts for fair sex founders follows the movement of the unspecific market . Otherwise , he said , data point shows there is still a recollective way to go before the market place is seen as just .
“ Venture has had several problematical year , and Das Kapital handiness in the market has declined significantly . In universal , the VC market saw declines of well-nigh 20 % in deal count and 50 % in trade note value between 2021 and 2023 , ” he said . “ That is not mean to make activity in female person - found company look better , but the context of marketplace trouble is important . ”
Overall , less than 25 % of all deals go bad to female - founded companies in 2023 . The most popular category was software , where around $ 8.4 billion was invest , followed by B2B , SaaS , and apothecary’s shop and bio . New York City takes the top spot for where women receive the most deals , followed by San Francisco and Los Angeles .
“ While it has been a large market place for a while , it is beginning to exit the gap with the Bay Area in terms of investment count activity , ” Stanford say . “ New York has become a great market for founder of all type , and right now that is showing through its mellow VC levels in female person - launch company . ”
Women founders can attest that this has not been an easy yr for fundraising . Dina Majzoub , the founder of animal health care company Vidapaw , started fundraising in October and said investors were hesitating to cut checks . She read that finding money as a womanhood founder is an uphill struggle . “ I ’ve been asked some things in meetings that my male vis-a-vis would n’t blink at , ” she said . “ One investor even evoke a male co - founding father might make Vidapaw more fundable . ”
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For the most part , she is affirmative for the year to add up . She said the landscape for female beginner has n’t radically alter and that woman are conform to play the plot well . “ While cognizance around gender disparities in VC funding has increase , the actual capital menses still lags . It ’s a learning curve ball : Each no is a lesson in kinship - building and navigating a male person - dominated bowl , ” she said . “ The support gap persists , but our resilience and strategic networking are tardily bridging the water parting . ”
Maya Watson , the co - founder of SaaS startup Manual , pass the full yr nurture and is tight to finishing her one shot . She said she did n’t see much traction in the bound but received more inward toward the end of the year .
Raising in a bear food market has had its benefits , though , as investors are pay close attending to who they are cutting check to . “ I ’m mad and hopeful about the society who are raising in this window , ” Watson , who is a first - time founder , say . “ I think they ’re live on to be really solid because the evaluation cognitive operation feels really thoroughgoing and thoughtful . ”
Majzoub said she noticed that investors are already more enthusiastic about securities industry conditions this class . “ There ’s actual energy . investor are arrive their pens ready , ” she said . “ It ’s a knotty climb for us cleaning woman founders , but the view ’s starting to depend reasonably good . ”
