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Only 2.1% of the fund’s investment capital

Broadcast United News Desk
Only 2.1% of the fund’s investment capital

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Startups founded or co-founded by women continue to have difficulty finding funding. New signs of this are coming from the United States, where last year’s data is really important: 2023 data on companies founded entirely by women Only 2.1% of total startup capital Supported by U.S. venture capital. One number certainly cannot exhaust the analysis of industry trends, but the U.S. venture capital industry has witnessed the birth of numerous funds led by women, incubators with female founders, and other new companies.

PitchBook analysis shows that in 2023, startups founded by women (co-) will collect 3,495 transactions worth $44.5 billionThe 2024 numbers are expected to be more manageable, as the first quarter saw 684 deals worth $8.3 billion and the second quarter saw 803 deals worth $7.1 billion. The numbers are a far cry from the peak in the first quarter of last year, which saw 1,006 investments worth $17.3 billion.

However, a record year is still 2021, as the industry as a whole has experienced a strong recovery in post-COVID-19 operations. In these twelve months, the number of startups founded or co-founded by women in the United States registered 5,044 investments with a total amount of US$62 billion.

When there is a male co-founder

The sobering data is the cross-section of investments in innovative companies founded only by women and those co-founded by women and men. Over the past 16 years, the former received only 12.9% of the funding allocated to startups with at least one founder, or $40.2 billion in 9,195 deals out of 311.6 billion in 30,025 businesses. So when women show up at a pitch alone, their chances of bringing back funding are slim, but if they are accompanied by a co-founder, their chances increase significantly.

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If we look at the breakdown by industry, contrary to the stereotype that information technology is primarily a male privilege, female startups rank the software industry first, raising $94.4 billion in funding across 12,379 businesses from 2008 to date, followed by home care services companies ($29 billion for 3,630 deals) and B2B services ($25.7 billion for 3,460 deals). Finally, on a geographic level, as with all venture capital, the cities that offer the most opportunities are still New York and San Francisco.

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