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Women Still Have a Venture Capital Problem
Article

Women Still Have a Venture Capital Problem

This is how we actually fund female entrepreneurs

Anu Duggal
Fast Company, 2021
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Female entrepreneurs remain underrepresented and underfunded in the United States, despite growing attention to the problem. Institutional investors continue to place the lion’s share of capital in male-founded businesses. But the lack of funding for women-founded businesses is also an issue for America’s economy, writes venture capitalist Anu Duggal in this compelling cri de coeur. She notes that investors need to shed dated notions of female entrepreneurship so that more women can start more businesses and add to US economic growth.

Summary

Misperceptions surrounding women-led companies have constrained funding opportunities for female entrepreneurs.

Many institutional investors view female-founded companies as social investments rather than as opportunities to produce maximum returns. In 2020, only 2.3% of venture capital funds – some $3.7 billion – went to businesses started by women. The rest, around $160 billion, went to companies created by men. Moreover, only 12% of decision makers at venture capital firms are women, and many VC companies have no female partners.

Perceptions about women in the institutional ...

About the Author

Anu Duggal is a founding partner of the Female Founders Fund. 

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