Women Who Tech reported that a staggering 65% of female founders were told they would raise more money if they were men, with 70% experiencing differential treatment in funding due to gender.

Research consistently shows that female-led startups receive significantly less funding compared to their male counterparts, highlighting a persistent disparity in the investment landscape.

In 2024, female-founded tech startups continue to face substantial challenges in securing investment, underscoring an ongoing industry imbalance.

Data from Pitchbook reveals that in 2022, female-founded companies accounted for only 2% of all VC investment, illustrating the stark underrepresentation of women in this sector.

The Alan Turing Institute found that female AI founders received six times less VC funding than their male counterparts, averaging $1.64 million per deal compared to $10.86 million for male-led teams.

Alarmingly, only 5% of VC firms have equal or majority representation of women in decision-making roles, according to the Alan Turing Institute.

To promote accountability, the Committee has recommended that VC firms disclose diversity data when applying for tax reliefs.

The UK Treasury Committee has criticized the concentration of VC investment in London and the South East, calling for greater diversity and transparency in funding practices.

Investors are encouraged to support female founders, as companies led by women have been shown to deliver better returns, performing 63% better than all-male teams, according to First Round Capital.

While female-led investment funds are suggested as a partial solution to address the funding gap, they risk being marginalized in a predominantly male-dominated landscape.

The article emphasizes the need for societal and legislative change to ensure greater support for female-led startups and to foster a more inclusive investment culture.

Heather Delaney of Gallium Ventures highlights the necessity for more women on VC boards and advocates for a broader education program to improve representation and decision-making.