Women’s startups are much more profitable, but receive almost no funding – study
24 July 2025 10:12
Companies founded by women show better financial results than male startups, but receive critically little venture capital funding. This is evidenced by the results of a study by the Female Founders Fund, "Komersant Ukrainian" reports citing vector.
According to an analysis of financial data over the past decade, women entrepreneurs create more efficient businesses than men. Their startups generate 78 cents of revenue for every dollar raised, while companies founded by men bring in only 31 cents per dollar of investment. That is, women’s startups are more than 2.5 times more efficient.
In addition, women’s startups are more economical in terms of capital expenditures. They “burn” an average of $270 thousand per month, which is 15% less than the market average of $320 thousand.
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Despite such convincing results, the share of venture capital funding received by companies with female founders remains scanty, the study says, at just 2.1% of total venture capital investment in 2024.
At the same time, there is a positive trend in the number of deals. Over the past decade, the number of venture capital contracts with women entrepreneurs has grown from 479 in 2014 to more than 800 in 2024. The number of women-owned companies going public has also increased: from 2 to 14 in ten years.
The structure of the venture capital industry is also gradually changing. The share of women in leadership positions in venture capital funds has tripled, from 6% to 17% over the study period.
The study thus questions traditional approaches to venture capital investment and points to the underestimation of women’s entrepreneurship by investors.
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