What’s Holding Women Founders Back in the Startup Game? (Here are solutions)

I’ve spoken with dozens of women founders who have gone through incubation, acceleration, and even Silicon Valley programs. Many have gained recognition in their local and regional startup communities, while some have paused their ventures, and others continue, navigating challenges. A pattern stands out in their stories. When I ask, “Why do your startups grow slower?" "Why don’t you make it to the finish line for an EXIT?” Their answers are both eye-opening and deeply concerning.

Many women founders emphasise:

“If we could dedicate 100% focus to our startups, we’d grow as fast as men— maybe even faster.”

This statement can be supported by many researches. One study conducted by BCG in 2018 found that startups founded or co-founded by women generate significantly higher returns—78 cents per dollar invested compared to just 31 cents for male-founded startups, making them 2.5 times more profitable.

(*Reference: BCG, 2018. Why Women-Owned Startups are a better bet)

In the Game of Startups, focus and dedication matter more than anything— Not Gender. Women founders possess the same level of skills, talents, and potential as their male counterparts. But here’s where gender DOES start to matter:

FAMILY DYNAMICS

[From Founders' Perspective] Women founders often can’t devote their exclusive focus to their startups because they shoulder multiple priorities, especially in their family lives. (Attn.: I do not assert that "family dynamics" is the exclusive factor though) The result? They either slow their startup’s growth or are forced to step back entirely, ending their entrepreneurial journey.

Some of their comments struck me:

? “Successful women founders are either single, divorced, or have no kids.”

? “Men who succeed in startups often struggle in their personal lives, too.”

I often hear my Venture Capital partners say that building and growing a startup to a successful exit isn’t a sprint—it’s a marathon. It usually takes 5–7 years to see results. But every time I hear this, a voice inside me asks: does this marathon mean women founders must sacrifice their personal lives—staying "single," facing "divorce," or forgoing "kids" for years on end? (That sounds pretty extreme). While there’s no evidence directly linking these indicators to startup success, this reflection comes from countless conversations I’ve had with women founders, investors, and venture partners.

SCALABILITY

[From Investors' Perspective] During a deep discussion with Liz Sara , a prominent investor in Washington, D.C., with over 30 years of experience in the national entrepreneurship community, she highlighted a critical issue faced by women-led startups: lack of scalability. As a former Chair of the National Women’s Business Council and a consultant to over 100 early- and growth-stage companies, Liz has seen this challenge repeatedly. Among the 12 million women-owned businesses in the U.S., only 1.3 million are employer businesses—meaning just 10% of women-owned businesses actually employ others. The vast majority operate as self-employed solo entrepreneurs, which limits their potential for growth and investment.

This scalability gap became evident in a conversation I had with a biotech founder who was running her startup alone. When I suggested that investors value teamwork and advised her to consider bringing on a co-founder, she replied, “That’s why I’m pitching for investment—so I can hire people.” I clarified, “I’m not talking about hiring employees to work for you; I mean inviting a co-founder to work with you.”

For venture capitalists and angel investors, scalability is a key criterion for investment decisions. While a robust business model is essential, having a dynamic team and co-founders significantly boosts a startup’s potential for scale. Investors want to see that the leadership team can shoulder the challenges of growth collaboratively, not as a solo effort.

It’s painful to acknowledge, and I can’t help but turn the question inward: Then what is our purpose in supporting women founders?

Yes, having more women in the startup ecosystem brings incredible value—better innovation, diverse talent, and richer customer experiences. But are we (Venture Capitals) supporting them to push them into sacrificing their personal lives for their ventures? Is it a pure transactional relationship with founders?

This thought haunts me and pushes me to dig deeper. Is there a better way—a model that empowers women founders to thrive in their entrepreneurial careers without demanding they compromise their well-being?...

The Myth of Gender Parity in Venture Capital

When speaking with executives at technology companies and venture capital funds in San Francisco and New York—most of whom are men—I often ask whether their tech ventures or investment pipelines include women-focused support systems. The responses are typically one of two kinds:

Some dismiss the question outright, saying, “Gender? Why does it matter?! We back startups, not, like, gender politics."

Others step back with comments like, "Look, that’s a society thing! Not our responsibility. We’re here to make deals, numbers talk, okay?"

Okay, numbers talk:

? Startups founded solely by women received only 2% of all VC investments. Wait! It's getting worse: In 2023, startups founded exclusively by women secured only 1.8% of total U.S. venture capital investment, a decline from 2.1% in 2022.

? Even in the *FemTech sector—where over 70% of companies are founded by women—male founders consistently receive more funding.

? In 2022, all-male teams in femtech raised $731 million across 57 companies, while 105 female-founded femtech startups secured only $408 million. On average, male-founded femtech startups raised $9.2 million compared to $4.6 million for female-founded ones.

(Reference: Even in FemTech, it still pays to be a male founder, 2023) (TechCrunch, 2024. Funding for female founders remained consistent in 2023)

These reactions reveal a troubling lack of accountability and a blind spot in tackling the systemic barriers women face in the Tech and Investment ecosystem.

This isn’t just disappointing—it’s a reflection of a structural imbalance that perpetuates inequality at every level!

*Note: FemTech refers to technologies, products, and services designed to address women's health and wellness. It includes areas like reproductive health, pregnancy care, menstrual health, menopause, sexual health, and general well-being.

Alternative model - Impact Investment?

Many women founders I’ve spoken with have come to this painful conclusion: Conventional VC funding isn’t built for them.

They know the odds are stacked against them in this game. As a result, many women founders stop pitching to VC funds, left to struggle with finding sustainable funding sources elsewhere—or worse, nowhere at all...... This harsh truth doesn’t just highlight gender disparity—it widens the gap, leaving women founders to navigate a system that was seemingly never designed to support them.

Is there a better way-a model that empowers women founders to grow their careers without compromising their well-being?

This is where impact investment may come into play (still exploring).

I first encountered this concept 10 years ago while studying Social Enterprise Management at 美国哥伦比亚大学 School of Social Work. The idea of "capital with patience"—investment that prioritizes long-term impact over immediate ROI (Return on Investment)—fascinated me. It offered a vision of business as a force for sustainable change rather than just a race for profit. But at the time, it felt more like an idealistic theory, not a practical approach in a business world. Many of my business partners were quick to dismiss it as utopian, arguing that the market simply didn’t allow for such an approach. Their skepticism left me questioning whether this balance between PURPOSE and PROFIT could ever work in practice.

The growing demand for impact investment in these years presents a promising solution to the unique challenges faced by women founders.

Impact Investment - this approach not only aligns with the life courses of many women entrepreneurs, but also resonates with the nature of their ventures, which often emphasize social impact.

In addition to the family dynamics that play a key role in the life-course of women founders, I’ve observed that many women entrepreneurs are inherently driven to create social impact through their businesses—bringing benefits not only to their families but also to communities and society as a whole. Harvard recently featured an interview with Hela Cheikhrouhou, IFC’s regional Vice President, who affirmed this fact:

Hela Cheikhrouhou, IFC: "We must remember that female enterprises are more likely to create social impact through the businesses they create and operate. Whether they generate jobs through their business for other women, invest their income in the education of their children or support others in their community, this has a broader social impact as it benefits families, communities and, ultimately, societies."

(Reference: Harvard University, 2024. Why Investing in Women Entrepreneurs is Key to Social Impact)

Impact investing, particularly with a gender lens, seeks to address these disparities by directing capital toward women-owned or women-led ventures. A report shows, 90% of gender-focused impact investors have met or exceeded their financial expectations, with 97% achieving their impact targets.

(Reference: CIIN, 2024. In Focus: Gender and Impact Investing in 2024)

The Role of Women Investors

There is another small group of stakeholders with immense potential to empower more women founders - Women Investors! I’ve also spoken with women investors across Washington DC, New York, San Francisco, and Dubai, and the key solution became clear: we need more women investors in the ecosystem. After all, how likely is it that a male investor will fully understand challenges like menstrual dysfunction or confidently back a FemTech startup addressing such issues?

In the United States, women accounted for approximately 17.4% of decision-makers at VC firms with assets under management (AUM) of at least $50 million.

(Reference: PitchBook, 2024. US All in: Female Founders in the VC Ecosystem)

Increasing the number of women in VC roles is not only a matter of equity but also enhances investment outcomes. Research indicates that VCs with a higher proportion of female partners experience improved fund returns and a greater number of profitable exits. Women investors bring invaluable lived experiences and perspectives that are often overlooked by traditional VCs. Expanding their presence is essential to creating a more inclusive and impactful startup ecosystem.

Here are Experiments

Change needs action! Together with my Venture Partners at Big Sky Capital VC and in collaboration with Central Asian's leading IT Hubs (Kazakhstan: Astana Hub Kyrgyzstan: High-Tech Park of the Kyrgyz Republic Uzbekistan: IT PARK Uzbekistan), I conducted a Stakeholders Mapping in Central Asia in early December 2024. Starting from Central Asia, my goal is to experiment with identifying both the needs and demands for supporting women founders across the region. Further, we plan to bring these women founders to the global market with a better designed funding pipeline.

This mapping exercise allowed me to engage with Venture Capital firms, academics, and other key stakeholders in our ecosystem. One realization stood out: many stakeholders are already running women-focused initiatives, but these are often treated as side projects (feel-good-to-do), scattered and limited in impact. This raised a critical question: What if we could synchronize our efforts, connecting these dots into lines and weaving them into a bigger story of meaningful change?

The commitment I witnessed from our partners left me deeply inspired. Thanks Big Sky Capital VC MOST Ventures @ADVentures, Accelerate Prosperity - An AKDN Initiative Nazarbayev University IT Park University American University of Central Asia (AUCA) Caucasus Ventures Sturgeon Capital who are on this exploratory and experimental journey with us!

From Stakeholders to Women Founders

While we mapped those stakeholders ready to support women founders, the next question was: What about the women founders themselves?

Thanks to Astana Hub’s initiative, and in collaboration with IT hubs in Central Asia, we organized the “Invest Day with Big Sky Capital VC”—an event calling for women founders with MVPs (prototypes), tested business models, and readiness to scale globally. To ensure their alignment with global market opportunities, all pitches were conducted in English.

Our initial estimation? Around 20 applications. The result? A total of 46 women-led startups applied, far surpassing what we imagined. From these, we invited 16 outstanding women founders to the final pitch day with Big Sky Capital VC . The event lasted 2.5 hours, with other VC partners also joining the call to explore these exciting investment opportunities. Especially thanks to Adil Nurgozhin , founding partner of Big Sky Capital, who relentlessly commented on all these pitches and he is a strong advocate for this cause.

The Demand is Clear

The demand among women founders for funding opportunities and access to the investment network is growing. We added the 16 selected women-led startups to Big Sky Capital VC's deal flow sheet and have openly shared their details with other VC partners to increase their chances of securing funding. I’m hopeful some of them will soon hear back from interested investors.

If you’re curious about these pitches, feel free to watch the recorded event or reach out to me/Big Sky Capital VC for more details. EVENT

A Community in the Making

This journey doesn’t end here. To build ongoing connections between women founders and investors, we launched a Telegram channel. Within just a week, over 50 women founders joined, with more continuing to join every day. I invite you to extend this opportunity to women founders you know through the following Telegram link:

Key Takeaways from Experiments

1. Empowering women founders in the startup ecosystem requires a systemic approach—no single institution, VC, or government can solve this challenge alone. It demands collaboration among diverse stakeholders who share a sense of co-ownership and collective responsibility to drive meaningful change.
2. The demand among women founders is rapidly growing—they are eager to access funding, build connections with investor networks, learn insights into fundraising strategies, and scale their ventures to the next level.

A Call for Change - Investment for Women Founders

This is a message to Venture Capital firms, Venture Funds, Fund of Funds, Startup Accelerators, Governments, International Institutions who share this mission:

After countless conversations with women founders and investors across Central Asia, the United States, and beyond—along with the experiment I’ve been fortunate to lead with my partners in this ecosystem—I am making a bold call to redesign the startup system for women founders. This redesign must honor their life-course development, genuinely support the social impact they champion, and, in turn, deliver benefits to society as a whole.

The following calls to action are grounded in my extensive community service across Central Asia, my work experience with the World Economic Forum and the United Nations, and my new journey in the Venture Capital industry. Most importantly, they are validated by the insights and experiences shared by the many women founders and investors I’ve had the privilege to engage with.

Calls to Action:

1. Prioritize Impact Investment models: Promote investment models that align capital with impact and patience, enabling women founders to grow their businesses sustainably without compromising their well-being.
2. Increase Representation of Women Investors: Expand the presence of women investors who can champion women-led startups and offer invaluable perspectives, particularly in sectors like FemTech that are often overlooked by traditional VCs. Supporting established women entrepreneurs in becoming venture investors is an impactful practice.
3. Create Safe Community Networks: Build supportive networks where women founders and investors can openly share successes, challenges, and lessons learned. These spaces foster mentorship, connection, and mutual support, creating a sense of belonging and empowerment.
4. Integrate Mental Health and Well-being Support: Incorporate psychological and mental health resources into entrepreneurship programs. Feedback from women founders highlights that mental and emotional well-being is often more critical than technical skills. Coaches and mentors must adopt a gender-sensitive approach, recognizing the unique challenges women face while moving beyond a stereotypical “hustle Bro-culture” mindset.
5. Address the Knowledge Gap in Fundraising and Financial Literacy: Women founders often express a need for better education in fundraising and financial management. Existing acceleration programs tend to focus on early-stage startups. We need diverse accelerator programs tailored to support further growth and scaling. Women founders are eager to learn fundraising and investment strategies—critical skills often overlooked in the acceleration programs they attend.
6. Promote Co-Founders and Team Building: Complementary teams are vital for scaling a business sustainably. Women founders can benefit significantly from collaboration and partnerships that help share the workload, reduce burnout, and enable balanced, sustainable growth.
7. Promote Women Role Models: People can’t aspire to become what they can’t see. We need to actively share the stories of successful women founders and investors to raise public awareness, inspire confidence, and show women that they, too, can excel in the competitive startup world.
8. Generate More Data to Make Women Visible: We need more research and data to better highlight women’s contributions and challenges, enabling investors and markets to understand their unique needs. With this visibility, we can design more targeted and effective programs to support women founders.

If there are other recommendations, please feel free to share your thoughts so we can work together to engage stakeholders and enhance our approach.

A Shared Responsibility

Redesigning the startup system for women founders is not just about fairness—it’s about unlocking untapped innovation, driving sustainable economic growth, and creating lasting social impact that benefits us all. The time for change was yesterday! The cost of waiting any longer is too high.

This is not just a women’s issue; it’s a shared responsibility. Investors, policymakers, accelerators, and institutions—it’s time to step up, synchronize our efforts, and commit to a future where women founders can thrive without barriers. Let’s move faster, together, to build an ecosystem that fuels innovation, equity, and meaningful change.

Impact investment for women founders isn’t charity. It’s smart, it’s necessary, and it’s long overdue.

Follow up: Diverse Perspectives

After publishing my recent blog, I received many thoughtful comments and diverse perspectives on the concept of a “Women Fund" "Impact Fund” and the role of Impact Investment for women founders. It’s clear that this conversation is complex, and I want to shed light on different perspectives that emerged:

Some argued that women founders should not be separated from their male counterparts based on the “impact” criteria alone. After all, not all startups led by women are necessarily impact-driven, so why should we limit their opportunities or categorize them differently?

Another perspective proposed a designated fund exclusively for women founders, regardless of the “impact” nature of their startups. In this model, women founders would compete on a merit-based system to secure funding—just as in any traditional VC process. The difference, however, could lie in offering incentives, such as slightly lower investment interest rates or similar funding mechanisms designed to encourage and support women entrepreneurs.

I share these perspectives openly because I believe in the importance of dialogue and diversity of thought. My intention remains clear: Keep exploring the best ways to empower women founders, without limiting them or compromising fairness. I welcome further exchanges and insights from organizations and individuals who are passionate about supporting women startups.

CONTACT:

Jenny Jenish kyzy, [email protected]

Venture Partner, Big Sky Capital VC

Nominated "Gender Champion" of United Nations Development Programme in Kyrgyzstan

Nominated "Community Champion" of GSC - initiative of World Economic Forum

Community leader of #STEM4ALLKyrgyzstan, #WomenSupportWomen (private), #WomenFounders&Investors in CA.