US VC investment in female founders hits all-time high by Kate Clark

TL;DR - Female founder’s investment sizes are upward trending but the gap is still significant. Glossier and Rent the Runway are unicorns led by female founders.

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Topic Tags - statistics, Women in VC, VC success, minority, trends, social-economic

Questions answered:

  • Where is the VC industry headed?
  • What are the current statistics?

Summary:

  • VC funding for all-female teams reached $3.3 billion or 2.8% of all startup investments in 2019.
    • This number was $3 billion in 2018, showing a 10% growth.
    • This number was $2.1 billion in 2017, showing an increasing trend.
  • female-founded and mixed-gender teams raised over $17.2 billion, representing 11.5% of all venture capital invested in 2019.
  • It’s getting better for female founders, but it is hardly fair. Men still raise more than women and the VC industry has very few female partners.
    • Fewer than 10% of decision-makers in VC are women.
  • Female investors that do get funding are highly likely to come from a top university (Cambridge, Oxford, Stanford, MIT, Harvard)
    • This shows that VC is social diversity is low and primary gear towards a certain socio-economic status.
  • Many new VCs are geared towards only investing in women or minority races. BLCK VC raised a round of $40 mil, “one of the largest-ever pools of capital for a fund with a diversity mandate”
  • Glossier and Rent the Runway are women-led VC-backed unicorns, gaining support for female funding.

Follow-up links:

  • BLCK VC $40mil https://techcrunch.com/2019/12/02/diversity-focused-vc-fund-harlem-capital-debuts-with-40m/