Last year, U.S. startups with all-women teams received 1.9% (or around $4.5 billion) out of around the $238.3 billion in venture capital allocated, according to the latest PitchBook data.
That percentage is toptechtrends.com/2022/10/14/the-highs-and-lows-of-q3-venture-capital-data-for-women-startup-founders/”>a notable drop from the 2.4% all-women teams raised in 2021. The decline was expected, given the economic climate of last year: the bear, the bust, the winter. In fact, aside from 2016, the last time all-women-led startups raised such a low percentage of funds was in 2012, another period of funding decline caused by economic uncertainty and an election.
Fitting, almost. And naturally, thetoptechtrends.com/2022/08/26/a-look-at-progress-toward-venture-equity-this-womens-equality-day/”> percentage of funds raised increases when an “all-women team” turns into having “at least one women founder,” signifying the importance of always keeping a man in the room. The augmentation is quite noticeable, too: All-women teams raised 1.9% of VC funds last year, a percentage that skyrocketed to 17.2% when the team was mixed-gender. This trend has remained consistent for at least a decade.
“When the economy tanks, discrimination feels justified,” Ruth Foxe Blader, a partner at Anthemis Group, told TechCrunch. “Managers double-down on what they perceive as ‘safe’ and ‘boring.’ Investing in women is still perceived as high-risk. LPs need to look beyond manager diversity and into their investment portfolios if we want to change this industry; 1.9% is deplorable.”
There is good news, however.
toptechtrends.com/2023/01/18/women-founded-startups-raised-1-9-of-all-vc-funds-in-2022-a-drop-from-2021/”>Women-founded startups raised 1.9% of all VC funds in 2022, a drop from 2021 by toptechtrends.com/author/dominic-madori-davis/”>Dominic-Madori Davis originally published on toptechtrends.com/”>TechCrunch
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