# Breaking down Venture Capital’s gender and diversity barriers Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-22 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Female Founders in Venture Capital: Breaking Barriers Meta Description: Discover the shocking statistics behind female founders receiving venture capital and the imperative need to diversify the male-dominated VC world for greater URL: https://financedigest.com/breaking-down-venture-capitals-gender-and-diversity-barriershtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1288104376-1736815850016-compressed.jpg) _By_ **_Vanessa Stock,_** _Co-Founder & Chief People Officer, Pitch_ VC investment has a serious gender problem. According to [Bloomberg](https://www.bloomberg.com/news/articles/2022-01-11/women-founders-raised-just-2-of-venture-capital-money-last-year), female founders secured only 2.3% of venture capital in the U.S. in 2021, the smallest [share since 2016 and the second](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change") straight year that the percentage has declined. In Europe, that figure is even lower, at just 1.1%. These sobering statistics are a [clear sign that recent efforts](https://www.financedigest.com/turkey-clears-away-rubble-from-earthquake-rescue-efforts-wind-down.html "Turkey clears away rubble from earthquake, rescue efforts wind down") to diversify the male-dominated VC world are struggling. We must reverse this trend. Female and non-binary founders often have unique perspectives that translate to proven [business advantages in a wide range of sectors](https://www.financedigest.com/new-business-launches-to-support-it-professionalsfacing-mission-critcial-sector-challenges.html "NEW BUSINESS LAUNCHES TO SUPPORT IT PROFESSIONALSFACING MISSION CRITCIAL SECTOR CHALLENGES") and industries. Not only do they personally experience and understand problems that affect a huge number of people globally, but they can solve these problems in [ways other business](https://www.financedigest.com/5-simple-ways-in-which-your-business-can-save-water.html "5 simple ways in which your business can save water") leaders can’t. VCs are overlooking the [single biggest opportunity to drive](https://www.financedigest.com/cyclic-innovation-to-drive-the-single-use-cystoscope-market.html "Cyclic innovation to drive the Single Use Cystoscope Market") greater returns on their investments, and it’s high time this changed. **An ongoing uphill struggle** The sad fact is that the process and culture of fundraising, as it stands today, disproportionately favours men. According to a [recent report by BVCA](https://www.bvca.co.uk/Portals/0/Documents/Research/2021%20Reports/BVCA%20Diversity%20and%20Inclusion%20Report%20-%20Online.pdf), not only are 90% of senior investment roles in VC firms held by men, but in 12% of firms, every single member of the investment team is male, a figure that rises to 25% amongst firms with assets under management (AUM) of less than £100 million. [Evidence suggests](https://journals.aom.org/doi/abs/10.5465/amj.2016.1215) that gender bias influences VCs at each stage of the pitching process. [Female founders](https://www.financedigest.com/a-female-founders-top-tips-for-success-for-women-in-business.html "A female founder’s top tips for success for women in business") routinely report that they feel held to a higher level of scrutiny than their male counterparts, and often endure sexist lines of questioning from VCs who often appear to have made gut-feel assumptions about them early doors. This is compounded by the fact that many female-founders are working on products, services, and solutions that are aimed at addressing the needs and issues of underrepresented markets – markets that male VCs may have very little awareness of and can consequently struggle to see the [value in from an investment](https://www.financedigest.com/procurementin-european-private-equity-investment-adding-value-to-the-boardroom.html "Procurement in European private equity investment – adding value to the boardroom.") perspective. These dynamics negatively impact the financial success of female founders and the [investors that back](https://www.financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-source.html "Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source") them. When we don’t sufficiently fund female founders, they’re inhibited from [tackling the big challenges they’ve committed their lives](https://www.financedigest.com/as-the-cost-of-living-bites-tackling-insurance-quote-manipulation-is-key.html "As the cost of living bites, tackling insurance quote manipulation is key") to, and as a result, we all lose. **Seeing is believing** The good news is that despite all this, [female and non-binary founders](https://www.financedigest.com/building-a-fast-growing-start-up-as-a-female-founder.html "Building a Fast-Growing Start-Up as a Female Founder  ") are persevering against the odds and beating them. They’ve proven they can deliver market-leading returns, and more importantly, they’re on a mission to build a [brighter future](https://www.financedigest.com/brighter-financial-futures-will-be-powered-by-better-infrastructure.html "Brighter financial futures will be powered by better infrastructure") for all of us. But as the saying goes – seeing is believing. So, to [mark International Women’s Day](https://www.financedigest.com/tall-marks-its-25th-year-with-celebration-day.html "TALL Marks its 25th Year with Celebration Day ") 2022, Pitch put out a call to all female and non-binary founders who to share their pitch decks in order to inspire others to do the same. The response we had was overwhelming, both in terms of the [number of founders willing to share their decks](https://www.financedigest.com/what-is-the-optimal-number-of-slides-in-a-pitch-deck.html "What is the Optimal Number of Slides in a Pitch Deck?") and the enthusiasm we received from the community at large. The collection highlights how female founders are leading the charge, building products, services, and businesses that are transforming [industries and are pushing](https://www.financedigest.com/eu-recovers-appetite-for-trade-in-green-industry-push.html "EU recovers appetite for trade in green industry push") for change. Among the 80+ respondents to our call was Iris Ten Teije, founder of [Koia](https://pitch.com/presentations/Koia-Pitch-Deck-3ascs34rNgUv5KQcKV3q5cZ7), an innovative platform that enables users to buy fractions of non-traditional assets, such as watches and whisky via NFTs, all completely hassle free. Koia recently [raised $1.4m for its pre-seed round with investors](https://www.financedigest.com/boe-raises-rates-again-as-investors-look-towards-end-of-hikes.html "BoE raises rates again as investors look towards end of hikes") from Seedcamp, RTP Global, and Portfolio Ventures. We were also thrilled to showcase May Habib, an expert in natural language processing, AI language generation, and the evolving [ways people use language online](https://www.financedigest.com/online-reputation-and-customer-centricity-will-lead-the-way-for-retail-banking-in-this-new-era-of-approachability.html "ONLINE REPUTATION AND CUSTOMER CENTRICITY WILL LEAD THE WAY FOR RETAIL BANKING  IN THIS NEW ERA OF APPROACHABILITY:"). She’s the CEO and co-founder of [Writer](https://pitch.com/presentations/Writer-Pitch-Deck-5pMbiC6d1dj55CctWx3avS2F), an AI writing assistant for teams, and her team closed a $21m Series A round in November of last year. **Building towards a more diverse future** Investors [must make a conscious effort to invest in people](https://www.financedigest.com/life-post-brexit-people-must-take-precedent.html "Life post Brexit – people must take precedent") who don’t fit the pervasive stereotype of what an “entrepreneur” looks like. Why? Because they [risk missing](https://www.financedigest.com/accountants-risk-missing-post-brexit-opportunities.html "Accountants risk missing post-Brexit opportunities") out on great ideas if they don’t. Diverse founders bring different skill sets and perspectives to the table. They think differently, and may understand [customer needs](https://www.financedigest.com/why-empathy-needs-to-sit-at-the-heart-of-bbls-and-cbils-customer-service.html "Why empathy needs to sit at the heart of BBLS and CBILS customer service") in a way that others don’t. We’re calling on the gatekeepers of [capital to open](https://www.financedigest.com/the-future-of-financial-services-strategies-to-capitalize-on-open-banking-opportunities.html "The Future of Financial Services: Strategies to Capitalize on Open Banking Opportunities") the doors not just to women, but for people of all classes, races, and genders. [It’s time](https://www.financedigest.com/why-its-time-to-adapt-to-the-virtual-world-how-to-master-online-negotiations.html "Why it’s time to adapt to the virtual world: how to master online negotiations") we changed the fundraising odds — not just as a matter of fairness, but in the spirit of progress. **Click** [**here**](https://pitch.com/presentations/collections/female-founded-startups-6W5Xze7LB8o85KvJhf4hn3j8) **to see the full gallery of pitch decks from female and non-binary founded start-ups, curated by** [**Pitch**](https://pitch.com/) **, and prepare to be inspired.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---