Access to capital is a game-changer for any startup, however, women entrepreneurs in tech face uphill battles when trying to secure funding. Despite recent progress, a noticeable funding gap still exists between male-founded and female-founded companies. Factors contributing to the disparity include systemic biases, underrepresentation in venture capital firms, as well as limited networking opportunities.
As part of our on-going series on women-led innovation, we're diving into the key funding options available for female-led startups, including venture capital for women, angel investors for women in tech, and strategies to overcome funding challenges.
Female-led startups receive only a fraction of venture capital investments compared to their male counterparts. Studies show that female-led teams have generated a 35% higher return than teams led entirely by men, only 25.3% of venture capital funding was directed to female-founded or female co-founded startups. This lack of funding limits the potential of countless innovative businesses and underscores the need for increased support and awareness.
Familiarizing themselves with the diverse funding options available to them can help women entrepreneurs find the right financial backing for their businesses.
Self-funding through personal savings, credit cards, or loans from friends or family can be an effective way to maintain full ownership - and independence - for their business.
Angel investors are people who provide capital in exchange for equity. The number of angels investors for women who lead tech startups is growing, offering more access to early-stage funding and mentorship.
Venture capital firms invest in high-growth startups in exchange for equity. Though venture capital for women is expanding, securing investment remains highly competitive.
Platforms like Kickstarter and IFundWomen allow startups to raise capital without requiring equity exchange.
Non-dilutive funding from grants and pitch competitions provides capital without requiring equity exchange.
Traditional loans remain an option for women entrepreneurs seeking financial support without giving up equity.
There are several organizations and initiatives dedicated to supporting women-led startups and bridging the funding gap:
Women entrepreneurs! Adopt these strategies to navigate the funding landscape:
Women entrepreneurs can streamline the fundraising process with AI-powered tools!
See how we play a role in connecting women entrepreneurs with funding opportunities:
The funding landscape is changing, and while women still face challenges, they have more resources than ever to secure capital and scale their businesses. When women-led startups leverage available funding, tap into strong networks, and embrace new technologies, women in tech can overcome funding obstacles and thrive.
At EventBuilder, we're committed to supporting women entrepreneurs by providing platforms for learning, networking, and growth. The future of tech innovation depends on diverse perspectives, and ensuring women entrepreneurs have the resources and capital they need is a key piece of shaping that future.
Ready to take the next step? Explore our software and world-class event management services, attend our events , or connect with us to see how EventBuilder can help you make meaningful connections and fund your brilliant startup!