Women-led startups face a significant uphill battle when it comes to receiving venture capital investments: according to a report from the Harvard Business Review, just 2.3% of VC funding went to women-led startups in 2020. Increasing that number is a priority not just for the startups themselves, but for the VC industry that funds them.
So how can the VC industry do a better job of funding women-led startups—especially considering women-only teams have a higher internal rate of return (112% to 48%) than men-only teams? According to this Forbes article, improving female representation internally at VC firms themselves will have a trickle-down effect on funding for women-led startups—and recent data seems to be trending in the right direction.
This article was written by Forbes, an entity unrelated to HoyleCohen, LLC. The information herein is intended for educational purposes and has been selected by HoyleCohen due to the timeliness of the subject matter.
