Image Credits: Klaus Vedfelt / Getty Images
According to new data from PitchBook, US companies with all female founders are raising less capital this year than last.
Through the third quarter of this year, the amount of venture capital raised by women is 1.9%. If we take race into account, the number becomes even lower. Black and Latinx women raised less capital than Indigenous Americans last year, when the overall number for all-female teams was 2.5%.
As the venture market slows, the most marginalized groups would be pushed aside as investors retreat to old networks and deals that feel most familiar to them from the founder they don't hesitate to trust There is some good news on the front of the venture haves and have nots.
The year-to-date capital invested in all-female- founded companies in the US is slightly higher than the year before. Last year was a record-breaking year, and given the current market conditions, it is not surprising that present-day numbers are meager. Out of a total US figure of $194.9 billion, all-female teams raised $3.6 billion. All-female teams raised $3.3 billion across 771 deals in the year. All-female teams raised $8 billion across 1,132 deals in 2011.
“There is no logical justification for why female founders should be impacted any more so than any other founder category, be it in a bear or bull market.” Pippa Lamb of Sweet Capital
The amount of money raised when the founding teams are mixed- gender rather than all- female is different from the amount of money raised when the founding teams are all- male. Teams with at least one male co- founder raised $32.4 billion in 2,811 deals, compared to $3.6 billion worth of deals closed this year. Mixed- gender teams have been able to raise the same amount of capital as last year.
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