VC Decisions, Women CEOs, and Unicorns

Welcome to the June edition of "Empower Her Voice"! This month, we're delving into why VCs often overlook women-led startups, celebrating the progress of women CEOs in top companies, and exploring the future of women-founded unicorns. Let's dive in!

The Real Reason VCs Don't Invest in Women-Led Startups

At every conference, on every panel, year after year, tech leaders ponder the same question: Why don’t more women receive venture capital funding?

?The answer, though often ignored, is simple: VCs, by and large, choose not to fund women.?

It’s a straightforward decision, reflecting biases and comfort zones. In 2022, solely female-founded companies received just 2.1% of U.S. venture capital. Women make up 28% of all U.S. entrepreneurs, yet the funding disparity persists.?

Despite data showing women-led startups often outperform, VCs continue to favor male founders. The solution lies in VCs confronting their biases and making intentional choices to support women-led ventures.

Women CEOs: Progress and Persistent Challenges

The number of women CEOs at S&P 500 companies is at an all-time high, with 25 women in these top roles.?

While this represents progress, it’s still only 7% of the total. Moreover, women hold 29.7% of board seats, with little improvement in recent years.?

The glass cliff phenomenon, where women are promoted during times of crisis, and the broken rung, which hinders women's initial step into management, are significant barriers.?

Addressing these issues requires systemic change from the beginning of women's careers to the top, dismantling biases and providing equal opportunities at every level.

Women-Led Unicorns: A Growing Force

In 2013, there were only 39 unicorns (startups valued at $1 billion or more).?

Today, there are 532, and while diversity has increased, only 14% of these have a female co-founder.?

The path to equal representation is slow, with full gender parity expected by 2063. Despite the hurdles, women-founded startups have shown remarkable resilience and efficiency, often outperforming their male counterparts.?

The future looks promising as more women break into the unicorn club, driven by scrappiness and resourcefulness, especially in challenging times.

Investment corner

Securing funding can be daunting, especially for women who often receive less early-stage capital. To support you, I’ve compiled a list of VC firms and accelerators focused on female founders:

• Check out my monthly post with an extensive list of VCs and Accelerators across the world investing in women. Check out the comments for additional funds looking to invest in YOU!
• GrowF by Female Founders Accelerator: Currently accepting applications for gender-diverse founding teams. Apply here.

Resources Corner

Here are some new funds, grants, and accelerators. These resources have helped other founders succeed and can do the same for you:

• Check -out my monthly post? ??
• Free resource from Founders Fund Hub: A free resource for discovering the best opportunities to secure funding for your startup. Find grants, accelerators, pitch competitions, and more, organized by quarter to keep you up-to-date and on track.

Community Corner

Join communities that support women like TechFoundHer . They build tech competence, advocate for entrepreneur equality and system change, and connect impact-focused women tech founders with peers, champions, supporters, and allies.

Upcoming events

• Pitch HearstLab: The biggest competition for women-led startups in the world. Upcoming events:

Virtual: July 18, 2024 ??

London: October 16, 2024 ????

Atlanta: November 12, 2024 ????

• Sifted Summit :

October 2-3, 2024 in London ????

Sifted is bringing startup Europe together under one roof once again.?

• Slush:

November 20-21, 2024 in Helsinki ????

Slush is a startup and tech event held annually in Helsinki, Finland. Slush facilitates meetings between the founders of startups and investors such as venture capitalists, accomplished with events such as matchmaking and pitching competitions.?

As we continue to navigate the startup landscape, remember the power of community and the importance of sharing our stories. If you are a female founder with a story to share, or if you want to learn from the experiences of others, please reach out.

Sarah