TLDR:
- Women entrepreneurs only receive 1.9% of venture capital funding despite owning 42% of US businesses.
- Several grants and programs are emerging to address the funding gap and empower female entrepreneurs.
Women entrepreneurs in the United States face a significant gender gap in venture capital funding, receiving only 1.9% of total funding despite owning 42% of all businesses. This glaring disparity has hindered the scaling abilities of women-led businesses, even though data shows that women-led companies receive 78 cents per dollar of funding compared to 31 cents for companies led by men.
Fortunately, strategies are being developed to close this funding gap and support women entrepreneurs. Increasing the number of women investors, educating investors on unconscious bias, and funding programs specifically for female entrepreneurs are some of the steps being taken to level the playing field.
Organizations are being established to provide financial grants to female entrepreneurs, offering support in terms of mentorship and valuable resources to help women break boundaries and fuel growth in their industries. Grant programs like the IFund Women Grant, She’s Connected by AT&T, and HerRise Micro-Grant aim to empower women in business and advance their financial stability.
Despite the existing gender disparity in venture capital funding, these grants are working towards creating a fairer playing field and empowering more women to start and grow their businesses. As a result, positive strides towards economic equality are anticipated as more women become empowered entrepreneurs.
