TLDR:
- Funding gap between female- and male-founded companies remained substantial in 2023.
- Female-founded companies generated a record high proportion of total US VC deal value at 22.8%.
Across the nation, the venture capital funding gap between female- and male-founded companies in 2023 remained significant. The US All In: Female Founders in the VC Ecosystem report by PitchBook highlighted that while female-founded companies saw improvements in deal value proportions, the gap in funding amounts was stark. Female-founded teams raised $44.7 billion in VC capital in 2023, compared to $114.8 billion raised by all-male founding teams. The report also emphasized the challenges faced by all-female teams, who only managed to secure $3.2 billion in funding, representing just 2% of the total.
Regionally, the San Francisco Bay Area, New York City, and Boston saw a larger share of funding for female-founded startups, while areas like Atlanta and Washington, DC lagged behind. In South Florida, businesses with female co-founders raised $309 million in 2023, with only 2% going to all-female teams. Miami metro area saw $146 million in funding, with a dismal 2% going to all-female teams. Nationally, the exit environment for female founders remained challenging in 2023, with a decline in exit value and count. The report also highlighted the lack of female representation at the VC firm level and the disparity in funding allocation based on gender.
Female-founded startups continue to face obstacles in the VC ecosystem, with funding disparities and challenges in the exit environment. As the industry works towards greater gender equality and representation, it is crucial to address these issues to ensure a more inclusive and diverse startup landscape.
