In 2019, venture capital investment into U.S. startups nearly doubled from $88 billion to $144 billion. So, while it comes as no surprise that 2019 was also a record year for female founders securing these dollars, many would be shocked to learn this funding amounted to a mere 3.4% at its all-time high.
It would be reasonable to assume that VC funding would drop in 2020, especially during the uncertainty of the pandemic. However, U.S. investment actually increased to a whopping $166 billion with about the same number of deals as the year previous. In spite of this, investment into women-led startups tumbled to just 2.4% of funding, confirming many expert theories that the pandemic has caused a “shecession” in the entrepreneurial world.
These discrepancies are huge and even more startling when you take into account that women-led startups are more likely to be successful than those led by their male counterparts. Only about 12% of decision makers at VC firms are women, and of all the partners at these firms, only 2.4% are female founders who have the true authority to control investment decisions. When women venture capitalists do make the decisions, they’re twice as likely to invest in
This story was published at Startup Nation Women in Business and provided for your interest.