Key Takeaways
- • Female-founded companies received only 2% of all venture capital investment in 2022, and only about 15% of VC cheque-writers are women, according to the World Economic Forum article.
- • Startups founded by women in the Middle East and North Africa (MENA) received only 1.2% of funding in 2021 and about 2% in 2022, per McKinsey data cited in the piece.
- • A Harvard study found 70% of VC investors preferred pitches from male entrepreneurs over identical pitches from female entrepreneurs.
- • A BCG report cited in the article estimates global GDP could rise 3% to 6%, boosting the global economy by up to $5 trillion annually if women entrepreneurs received the same investment as men.
- • The article recommends expanding women-led VC networks, celebrating female success stories, and confronting stereotypes about women-led high-growth businesses.
Summary
Female-founded companies received only 2% of all venture capital investment in 2022, and only about 15% of VC cheque-writers are women, according to a World Economic Forum article on narrowing the gender gap in venture capital. The article contrasts this with broader gains in women's professional opportunity, pay and decision-making power, which the author notes are tracked by the OECD, the World Health Organization and UN agencies.
The disparity is especially pronounced in the Middle East and North Africa (MENA), where startups founded by women received only 1.2% of funding in 2021 and about 2% in 2022, according to McKinsey data. The author, whose company is based in the region, notes that VC is increasingly seen as central to national economic competitiveness, with regional VC funds and corporate VCs competing alongside sovereign wealth funds.
The article cites several drivers. A Harvard study showed 70% of VC investors preferred pitches from male entrepreneurs even when the pitches were identical. Another analysis found VC investments in companies founded or co-founded by women average less than half the amount invested in male-founded companies. In an Inc. Women Entrepreneurship Report, 62% of female entrepreneurs reported experiencing some form of gender bias during fundraising. A survey of 125 female founders in MENA, conducted with Wamda and TiE Dubai, found 58% believed regional investors were less likely to back women-led startups than global investors. The article also points to a scarcity of female investors and a weak deal pipeline; the corporate VC arm Agility Ventures reportedly received about 1,000 pitch decks last year, with only a handful from women-founded businesses. Harvard Business Review authors caution founders against pitching only to female investors, noting that women raising some capital from men early makes later scaling easier.
The article argues that closing the gap offers economic gains. A BCG report cited in the piece estimates global GDP could rise 3% to 6%, up to $5 trillion annually, if women entrepreneurs received investment on par with men. Proposed remedies include expanding women-led VC communities through networks such as Women in VC, AllRaise and the Female Founders Fund, as well as public programmes like Monsha'at in Saudi Arabia and UN Women's She Innovates. The article also calls for more visibility of female role models such as Mumzworld CEO Mona Ataya, and for challenging the Global Entrepreneurship Monitor-identified stereotype that women-led businesses are unsuited to outside investment.
The disparity is especially pronounced in the Middle East and North Africa (MENA), where startups founded by women received only 1.2% of funding in 2021 and about 2% in 2022, according to McKinsey data. The author, whose company is based in the region, notes that VC is increasingly seen as central to national economic competitiveness, with regional VC funds and corporate VCs competing alongside sovereign wealth funds.
The article cites several drivers. A Harvard study showed 70% of VC investors preferred pitches from male entrepreneurs even when the pitches were identical. Another analysis found VC investments in companies founded or co-founded by women average less than half the amount invested in male-founded companies. In an Inc. Women Entrepreneurship Report, 62% of female entrepreneurs reported experiencing some form of gender bias during fundraising. A survey of 125 female founders in MENA, conducted with Wamda and TiE Dubai, found 58% believed regional investors were less likely to back women-led startups than global investors. The article also points to a scarcity of female investors and a weak deal pipeline; the corporate VC arm Agility Ventures reportedly received about 1,000 pitch decks last year, with only a handful from women-founded businesses. Harvard Business Review authors caution founders against pitching only to female investors, noting that women raising some capital from men early makes later scaling easier.
The article argues that closing the gap offers economic gains. A BCG report cited in the piece estimates global GDP could rise 3% to 6%, up to $5 trillion annually, if women entrepreneurs received investment on par with men. Proposed remedies include expanding women-led VC communities through networks such as Women in VC, AllRaise and the Female Founders Fund, as well as public programmes like Monsha'at in Saudi Arabia and UN Women's She Innovates. The article also calls for more visibility of female role models such as Mumzworld CEO Mona Ataya, and for challenging the Global Entrepreneurship Monitor-identified stereotype that women-led businesses are unsuited to outside investment.
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