TLDR:
- In 2023, a quarter of all U.S. venture funding, totaling $34.7 billion, went to companies with at least one female founder.
- The increase in funding for female-founded companies was driven by massive AI deals, including the $10 billion raised by OpenAI.
In 2023, the proportion of U.S. venture funding allocated to startups with at least one female co-founder reached a new peak. Female-founded companies received $34.7 billion in investments, representing a significant increase from the 15% they received in 2022. The surge in funding was largely due to a number of billion-dollar-plus rounds raised by AI companies with female co-founders. For example, OpenAI secured the largest funding deal in 2023 at $10 billion, while Anthropic raised over $6.5 billion across four funding rounds that year, both with female founders.
Although over 50% of U.S. investment in AI companies with at least one female founder occurred in 2023, it was driven by a few large fundings. Overall, less than 20% of the funding rounds in the AI sector that year went to companies with female founders. However, several other unicorn companies like Adept AI, Replit, and Imbue with female founders also received significant funding deals in 2023.
While the progress in funding for female startup founders has been slow, the increase in investment in 2023 provides hope for continued gains. The venture ecosystem has seen a shift in the right direction, with more women participating in the startup ecosystem than ever. Although still not at parity, the ground is slowly shifting in a positive direction, especially in sectors like AI where female founders are making significant impacts.
