Venture capital-backed startups have long been recognized as a male-dominated field, but recent years have shown increases in women beginning to enter and take part in the venture capital space. What is the status of women in this space today, and how can we continue moving forward in the future? Let’s dive into the current market, some prominent female founders, and what the future could look like for women in venture capital-backed startups moving forward.
Women in Venture Capital
Female Founders
Despite a challenging fundraising environment in 2023, funds have been continuing to increase for female-founded startups. Investing in underrepresented startups can lead to more women feeling empowered to start their own businesses or develop a solution to a problem that women may face. Women are beginning to see that there is opportunity in creating a startup because of the women who have already done it. Women supporting women can have an impact on the overall growth of a startup.
In 2023, the amount of U.S. venture funding that went to startups with at least one female co-founder reached a new high – $34.7 billion. This number represents a quarter of all funding in this sector that went to companies with at least one female founder.[1] This record high has partly to do with the number of billion-dollar rounds raised by OpenAI and Anthropic, both companies who count women among their founders. OpenAI raised the largest funding deal in 2023 at $10 billion and Anthropic raised more than $6.5 billion across four funding rounds.[2]
Growth of Female Founders
The startup world is becoming less dominated by men, as we can see from multiple statistics. There has been a gradual shift towards female leadership in the venture capital industry. This shift is showing that women are determined and resilient and want to create equal opportunities for themselves and others.
Around the U.S., women are slowly beginning to receive more of the proportion of deal value for their female-founded companies. For example, 38.4% of total deal value in the Bay Area in 2023 was for female-founded companies, up 90% from 20.2% in 2022. New York’s proportion was up 31% at 26.6% in 2023, from 20.3% in 2022.[3] Although these numbers are not nearly what they could or should be, the growth can highlight a possible change in the industry.
Industry Bias
There remains a wide gap between the deal activity for all-female-founded companies versus all-male-founded companies, as shown below. While the all-female-founded companies closed just over 800 deals in 2023, the all-male-founded companies closed just over 8,000 deals.
An examination of 2,000 venture-backed startups published in 2023 in Harvard Business Review found that women-owned companies that raised their first-round funding exclusively from female VCs were only half as likely to raise a second round as companies whose funding included a male partner. The researchers concluded that gender determined their first-round funding, not their business acumen.[4]
Funding Barriers
Part of the challenge that is seen with the lack of rise in female founders within the venture capital industry is the barriers to funding due to founder approach. Even when women come up with a great business, they may still be less likely to take big risks. They may choose to pitch their companies in a smaller light instead of telling potential investors that their company could be compared to a current top-performing company. These smaller ambitions may be reflected in the size of VC deals that female founders receive, therefore creating a barrier to funding for women in venture capital-backed startups.
MicroVentures Women in Venture Capital
MicroVentures has hosted many companies on its platform that consist of female founders in the venture capital industry. Take a look at some of the female founders of MicroVentures, and click here to read our blog on even more female founders who have raised capital through MicroVentures!
Tiya Gordon
Company: itselectric
Founded: 2021
Role: Co-founder and Chief Operating Officer
https://www.linkedin.com/in/tiya-gordon-itselectric/
Tiya Gordon is the co-founder and Chief Operation Officer (COO) of itselectric, a curbside EV charging network that utilizes existing privately-owned electrical distribution sites and shares revenue with host properties. She brings 20 years of experience in building, operating, and running groundbreaking design and technology companies. Tiya’s work has received top industry accolades including The National Design Award from the Cooper Hewitt, Smithsonian Design Museum; the SXSW Innovation Award for Urban Infrastructure; the 2023 Innovation by Design Award by Fast Company; the 2023 Next Big Thing In Tech; and the 2024 Keeling Curve Prize.
Danae Moya
Company: Delphistem
Founded: 2021
Role: Co-founder and COO
https://www.linkedin.com/in/danaemoya/
Danae Moya is the co-founder and COO of Delphistem, a biotech company developing an innovative stem cell solution collecting urine samples, reprogramming them into stem cells (iPSCs), and storing them for future medical use. Danae has worked in international media agencies, where she developed global media strategy plans for a variety of clients and then spent almost 10 years mostly in leadership roles within luxury consumer retail organizations in the UAE.
Khatija Ali
Company: BioSapien
Founded: 2018
Role: Founder and Chief Executive Officer
https://www.linkedin.com/in/kpalimd/
Khatija Ali is the founder and Chief Executive Officer (CEO) of BioSapien, a biotech company developing advanced biodegradable implants to deliver chemotherapy drugs directly to the tumor site. Her desire to find new cancer solutions began suddenly when her father was diagnosed with colorectal cancer in 2008. After his passing, Khatija applied to medical school. She has also founded two other businesses: one in the consumer industry and one in the finance industry.
Shara Ticku
Company: C16 Biosciences
Founded: 2017
Role: Co-founder and CEO
https://www.linkedin.com/in/sharaticku/
Shara Ticku is the co-founder and CEO of C16 Biosciences, a New York-based startup solving the palm oil problem. C16 Biosciences uses microbiology to produce sustainable, bio-based edible oils that look and function just like palm oil. Prior to founding C16 Bio, Shara worked at Goldman Sachs, the Clinton Health Access Initiative, and the United Nations.
Christie Lagally
Company: Rebellyous Foods
Founded: 2017
Role: Founder and CEO
https://www.linkedin.com/in/christie-lagally-875b9a4/
Christie Lagally is the founder and CEO of Rebellyous Foods, a company that is developing a whole new manufacturing system designed to be cleaner, more efficient, and better for the people. Rebellyous Foods delivers delicious, price-competitive plant-based chicken for schools, stadiums, restaurants, and foodservice outlets. Christie is a mechanical engineer with 15 years of engineering experience. She spent much of her career in the aerospace industry working on commercial airplanes and spacecraft in testing, design, and manufacturing. She also served as a Senior Scientist for the Good Food Institute uncovering the technical barriers in the development of plant-based meat and clean (i.e. cultured) meat.
What the Future Looks Like
There are many obstacles for women growing at a more rapid pace in this field, but there are also lots of trends that could signify positive change in the industry for women. First, there is an increased awareness and growing recognition of the importance of diversity in investment decisions, firms are seeing the positive impact of innovative and effective diverse teams.
Similarly, these women who are beginning to take on leadership roles and founding roles in startups can create networks with other women in the industry, allowing for a more supportive environment of women supporting women. These communities can be important for sharing resources, experiences, and opportunities, ultimately leading more women to the venture capital space and empowering them in this new environment. Here is a great resource for women in the venture capital industry who may be looking to join a community.
Additionally, younger generations of investors are beginning to make different investment decisions from some of the older generations of investors. These younger investors are prioritizing social impact. Many organizations are seeing the benefits of investing in female-founded businesses, creating initiatives aimed at increasing funding access for female founders, allowing a more leveled playing field, and giving women a chance to shine and grow.
Final Thoughts
The future of venture capital is not just about the presence of women in the industry, but rather about creating a system in which female founders can grow. The venture capital landscape is changing, and the growing inclusion of women may be helping to drive some of this change. While there are still obvious challenges, the progress being made is encouraging.
Want to learn more about female founders and the future of venture capital? Check out the following MicroVentures blogs to learn more:
- The Rise of Female Founders in the Startup World
- The Female Founders of MicroVentures’ Portfolio
- The Future of Venture Capital
- Investing in Startups – Things to Know Before You Invest
Are you looking to invest in female-founded startups? Sign up for a MicroVentures account to start investing!
Are you a female founder looking to raise capital for your startup? Apply today to raise capital with MicroVentures!
[1] https://news.crunchbase.com/diversity/us-vc-funding-female-founders-peaked-2023-ai-openai-anthropic/
[2] https://news.crunchbase.com/diversity/us-vc-funding-female-founders-peaked-2023-ai-openai-anthropic/
[3] Pitchbook 2023 U.S. All In Female Founders in the VC Ecosystem
[4] Pitchbook 2023 U.S. All In Female Founders in the VC Ecosystem
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