TLDR:
- More women are starting their own businesses, accounting for nearly half of new entrepreneurs in recent years, according to a report from Gusto.
- While progress has been made, a funding gap still exists, with only 2.1% of venture capital investments in the U.S. going to businesses founded solely by women in 2022.
- Female founders still face discrimination in fundraising, but some believe the landscape is improving for women-led businesses.
In recent years, more women have been starting their own businesses, with women making up nearly half of new business owners. However, there is still a significant funding gap for women entrepreneurs, with only 2.1% of venture capital investments in the U.S. going to businesses founded solely by women. Despite these challenges, some female founders believe that it’s an amazing time to be a woman in business and that the entrepreneurial landscape is changing for the better.
Female founders such as Victoria Zorin, founder of Nola Technologies, and Olivia Cotes-James, founder of Luüna, have experienced discrimination in fundraising but have also seen progress. Zorin credits this progress to increased awareness and investment into female-led startups. In 2022, the funding rate for women-owned businesses rose to 41%, slightly higher than the 37% for businesses owned by men. However, the average funding size for women-owned companies is still significantly lower than for businesses owned by men.
Female founders also face misconceptions and stereotypes, with some investors favoring male-led startups even when women deliver similar pitches. This bias may stem from the majority of startup CEOs being white men, causing investors to perceive male entrepreneurs as more capable. However, female founders like Cotes-James have found success despite these challenges.
The article also offers advice for young entrepreneurs, emphasizing the importance of confidence, embracing opportunities, and learning to say no. Female founders encourage young women to fight for their dreams, even in the face of adversity, and to value their own time and long-term goals over short-term gains.
