Funding numbers show slow progress for female-led startups despite hitting yearly high
Funding secured by startups founded exclusively by women has reached $15.5 billion so far in 2024, marking the highest annual total to date. However, a deeper analysis of the figures highlights ongoing challenges facing female entrepreneurs in accessing critical startup capital.
Data from venture funding tracker PitchBook reveals that while the total funding amount for women-led teams is up from 2023, it represents a smaller slice of the overall pool compared to last year. Specifically, deals for all-female founding teams accounted for 17% of total venture funding in the first half of 2024, down from 28% over the same period in 2023.
A breakdown of the numbers also shows that companies with exclusively women founders have struggled to progress beyond the earliest funding stages. The majority remain in the seed or Series A phase according to a leading industry analyst, posing obstacles to scaling as investments dry up. Few have achieved breakthrough growth rounds on par with male-led counterparts.
There were some high-profile exceptions like a new AI startup attracting a $50 million seed investment in June. However, the data hints at deeper challenges for women founders seeking to attract investors and build high-growth businesses. Deal volume dropped noticeably from over 500 in the first half of 2023 to just 372 over the same period this year.
While the quarterly funding amount of $1.1 billion in Q2 2024 marked the highest point since 2022, women-led teams are still projected to gain only approximately 2% of total VC investment for the full year. Experts argue this underscores how entrenched barriers continue limiting access to the outsized capital sums that can propel companies into unicorns.
Overall the numbers serve as an important reminder that despite hitting new highs, true progress on diversity in startups will be measured not just by totals but the ability of all founders whatever their gender to achieve their fullest potential.
