A recent report compiled by Crunchbase and female-focused digital media outlet She Works wonders why more money isn’t going to female-led companies. The study found that the funding to such companies has steadily increased over the past few years, with a current total of $1.4 billion being invested in such businesses. Much of this has likely to do with unconscious bias and the failure of traditional venture capital sources to take into account socio-economic factors when making investment decisions. However, more concerted action is also needed from entrepreneurs
If you’re a woman starting an AI company, 2019 was a good year to do it. Despite the current climate of sexism and gender inequality, U.S. AI startups raised $3.61 billion out of the $23.5 billion allocated in total to all U.S.-based startups last year – a steady year-over-year increase that shows investors are still interested in this sector. Meanwhile, female founders raised 13.2% of all capital raised in AI last year – up from 11.6% in 2020 and 11.5% in 2019 – showing that there’s still room for growth as more women enter into this field and create innovative solutions for businesses around the world
The overwhelming presence of white men in venture capital is often blamed for the lack of success and investment opportunities available to women and people of color. Venture capitalists use a social network filter to identify which startups are worth investing in, so all-women teams may struggle to get the attention they deserve. This data reinforces the idea that, in order to achieve success as a woman entrepreneur, you need a partner — or at least someone who will support your endeavours.
