Seeing is believing
Maersk Growth
Global partner for external innovation at Maersk, on a mission to digitise, democratise, and decarbonise supply chains
Though Barbie (and Gretha!) voiced what millions of women across the globe recognise as gender inequality, Ken received the Oscar nomination — and it was noticed. While the conversation around gender balance persists, progress towards a more balanced playing field feels frustratingly slow.
This article delves into the persistent funding gap faced by female founders, the role of unconscious bias, and the importance of fostering inclusivity to rewrite the script for a more diverse and equitable future.
Join us as we explore the experiences of inspiring female founders, the critical need for role models and supportive communities, and the ultimate goal of creating a space where everyone, regardless of gender, can reach their full potential.
A special thank you to Rachelle Snyder , Oana Andreea Jinga , Murvah Iqbal ?? , and Mia Dahlgren for contributing to this article.
The Funding Gap
Despite women comprising half the world’s population, the equal gender split does not reflect startup funding. While the global male-to-female entrepreneur ratio is 10-to-7, male founders secured a whopping $109 billion in VC funding compared to a mere $2.86 billion for females in 2018.
The issue extends far beyond ‘just’ funding and is, in fact, multifaceted. This International Women’s Day, we seek to shed light on a few contributing factors to the continued challenge while celebrating input to the discussion from a few trailblazing female founders from our portfolio.
Now, back to the Barbie reference, and please excuse us for that, but what present example of a gender inequality perspective resonating with the global society do we have that describes the gender gap better? When Barbie stepped out of her pink pumps and into a pair of Birkenstocks, a stereotype was challenged. As with Barbie, challenging stereotypes and biases is a must when navigating the start-up ecosystem if gender equality is to improve.
Whether you are an investor or founder, your field will likely be male-dominant. That is what all statistics tell. According to Forbes, estimates show that all-female-founded start-ups received just 2.3% of all VC funding in 2020. Figures from Crunchbase further show how this is a step back as numbers declined from the all-time high of 2,8% in 2019. Though the male-to-female entrepreneur ratio is 10–7 according to The Global Entrepreneurship Monitors, the gap does not sufficiently explain the funding discrepancy, but maybe stereotypical barriers do.
Oana Jinga, Co-Founder of Dexory, shares her experience: “As a woman who entered the technology industry from a non-technical background, I’ve experienced the constant need to prove myself and like others, I’ve found myself having to fight for a seat at the table. When we started Dexory, and I was representing the company in a pitching environment, I experienced my voice being drowned out by male counterparts.”
Oana further highlights how certain stereotypes seemed to be attached to the funding process. “For instance, I met the perception that female-led businesses can get easier access to funding. This despite statistics showing the opposite reality: less than 3% of funding goes to female-led companies according, to Harvard Business Review.” says Oana.
These stereotypical barriers, while unintentional, are present, and part of the explanation to this might lie with the gender imbalance of the start-up ecosystem’s counterpart — the investors.
The Investor Landscape
In 2019, only 12% of decision-makers in US VC firms were women. The situation in the UK mirrors this: with female representation in VC stagnating at 30% since 2019, and with women statistically being twice as likely to hold non-investment positions as their male colleagues, the issue is further complicated.
Oana Jinga believes that the limited number of female investors is a determining factor in the evolution of the gender gap.
“In my view, the fact that only 15% of all VC funding, according to Harvard Business Review, is signed off by female investors creates barriers that need to be removed to implement meaningful change. I’m convinced that more women in leadership positions, both in terms of start-ups and investors, will lead to a more diverse business landscape with increased inclusion.” — Oana Jinga, Co-Founder, Dexory.
Data supports her view
And just like that, to quote another female role model, the cyclical nature of increased female representation leading to a reduced gender gap appears. This mechanism is not only applicable to gender but applies across minorities. In technical terms, this is referred to as the Affinity Bias, covering our natural urge to privilege or favour the people who are most like us. Simply put, this is how we are encoded to behave, and if not actively counteracting, we will not change.
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One could argue that this desire to mirror ourselves in the people surrounding us is a defining factor as to why it is important for women, as well as men, to have role models to look up to.
Role Models & Communities
The desire to see ourselves reflected in others can be a powerful force for positive change. Role models play a crucial role in inspiring individuals from all backgrounds, but according to Forbes, they are particularly important for women. Seeing is believing, as Dr Nina Ansary, author of Anonymous Is A Woman, put it.
“Both my parents founded and ran their own companies, so I have learned from a young age what it means to give a company your all. Looking back, I have always had an interest in environmental issues, so when the opportunity came for me to give a company that would benefit the climate my all — I jumped on it.“ Mia Dahlgren, Co-Founder and COO of Aircela emphasises the importance of relatable role models.
And Dr Ansary, indeed, was right. Seeing IS believing — research shows it, too:
By providing relatable examples of success, female role models are more than just figures of inspiration; they are instrumental in empowering women to reach for their dreams.
While individual role models are crucial, the powerful impact of building supportive communities, fostering connection, and sharing experiences is as significant. As Rachelle Snyder, Co-Founder and Co-CEO of Arrive Recommerce, emphasises, “As a female founder, I always look to other strong women leaders to learn from and uplift. We’ve got to commit to and build upon our community. And now, as a mom of two young children, it’s more evident than ever that we must support women in their personal and professional endeavours as it literally takes a village to do it all.”
Communities can further provide valuable learning opportunities, mentorship, and a sense of belonging, as highlighted by Murvah Iqbal, Co-Founder and Co-CEO of HIVED. “I connected with one of our first VC investors through their diversity office hours, where they dedicated time to meeting diverse founders and hearing their vision. It was a meaningful “in” for me as a young female founder starting with no connections or network in the VC world and helped to launch HIVED in a whole new direction.”
Gender Inequality in the Start-up Ecosystem
A micro deep dive by Maersk Growth Strategic Insights
The reality for many female founders is that they struggle to access the crucial capital needed to turn their visions into reality. Female-founded startups receive a disproportionately small share of VC investments. Globally, ~2% of VC funding goes to companies solely founded by women, and this has remained stagnant in recent years. This disparity persists across regions, with similar patterns observed in the US and Europe.
One contributing factor is the lack of female representation in the VC landscape itself. According to CSIS, women hold 8.6% of VC positions in the US, 8% of firm partners, and 7% of board seats at VC funds across the country. According to Pitchbook, this number adds up to 12% of females in decision-making roles across US VCs and Angel Groups in 2019. Fewer than 5% of all VC-funded firms have women on their executive teams, and only 2.7% have a female CEO.
However, there is a glimmer of hope. A growing number of VCs acknowledge the importance of Diversity & Inclusion (D&I) strategies. An European study highlighted, 23% of the interviewed VCs funds state that having a D&I strategy at the portfolio level is extremely important. By actively fostering a more inclusive environment and addressing unconscious biases, the VC industry can unlock the vast potential of female-led businesses.
The Importance of Inclusion
To summarise, increased female representation in both start-ups and the VC ecosystem is crucial. However, the fight for equality goes beyond filling seats with women. It’s about fostering an inclusive environment where everyone feels valued, respected, and empowered to contribute their perspectives and ideas. Inclusion thrives on conscious effort. Like Barbie leaving her Dreamhouse and venturing into the real world, we must actively dismantle biases and create a space where diverse voices can be heard and appreciated.
Let’s rewrite the script for a more diverse, equitable, and inclusive future, one where Barbie wouldn’t need to fight for a voice and where everyone can be the protagonist of their own story.