An Issue that Women Face When Getting Venture Capital Funding



The world of venture capital has helped many people get funding for their projects when they would otherwise have been unable. It has truly opened up many opportunities for entrepreneurs who would otherwise have not had the means to pursue their chosen venture. One group of people still faces unique challenges when it comes to this market. This group is women. Women still face unique issues when it comes to venture capital funding that men simply do not. The playing field is still not equal for both genders. For example, if has been noted that male entrepreneurs are far more likely to receive venture capital funding than their female equivalents. In fact the different is of 86%. This is not a negligible figure, and something to note. Not only this, but men are also 59% more likely to obtain angel investment as well. It is clear that there is a gender bias in the industry. There are several factors at play. I will highlight a few so that you can be ready for the unique challenges that women face today within venture capital investment.

It Is Still an Old Boys’ Club

I am sorry to admit it, but it is true. Venture Capital funding is still dominated by men. There are several reasons. For example, men are more likely to choose to invest in startups. Not only this, but they are more willing to hand over pieces of their business to investors. As has been said by some highly experienced women in the industry, women do not like to boast about the amazing things that they do. This means that they are less likely to receive funding by default given that you need to get yourself out there if you even want to get any funding at all. Women are also more likely to be self funded by men. Whether this last part is a choice or not is up to debate. Men are generally more interested in the area, too. There is also less female representation due to the kinds of fields than entrepreneurs come from. They often come from STEM (science, tech, engineering, and maths) fields, which have far more men taking part in than women.

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