ENTREPRENEURSHIP – Female-Founded Start-Ups Saw Funding Rise In 2021 After A 2020 Dip In Investment – CNBC

dWeb.News Article from Daniel Webster dWeb.News

Despite the continuing pandemic being difficult for women-led businesses, a Pitchbook report shows how female entrepreneurs are managing the global economic downturn.

The 2021 All In: Women in the VC Ecosystem report, co-sponsored by Beyond the Billion (BTB) and J.P. Morgan Chase, aims to “quantify trends in the venture capital (VC) ecosystem involving female founders and investors.” As of Sep. 30, 2021, the median valuation for early-stage, female-founded start-ups increased from $30 million to $45.5 million in the past year. For late-stage start-ups, median valuations also increased from $70 million to $120 million, a 69.4% increase from last year.

Between March and June 2020, when much of the U.S. was under government mandated quarantines and shut downs, companies founded by women were disproportionately affected in comparison to male-led companies. Female-founded businesses observed a 28.1% decrease in investments, while male-founded companies only saw a 5.4% decline during that same three-month period.

That year, offers and opportunities for women-led companies was extremely irregular; women would not begin to see a steady increase until December 2020. Despite the challenges of Covid, deal flow continued to increase for men throughout the year. Although female-founded businesses finished the year strongly, there was an obvious advantage for those that were led by men.

Ann Cairns is the global vice chair of Mastercard and a sponsor for BTB. She shared her commitment to women and promoting a more inclusive future. “

” We’ve seen female-led businesses adapt to a changing digital world and have witnessed them show greater resilience to the global economic downturn. BTB, she stated. “At Mastercard, we’re committed to supporting 25 million women entrepreneurs by 2025 as part of our broader financial inclusion goal. Because women entrepreneurs drive global growth, innovation, and the ability to get paid, we help them get capital and get paid. “

Other companies in the S&P 500 have also committed to fostering a culture of inclusivity; and their efforts have been making progress, as 30% of all S&P 500 board directors are now female.

Additionally, the All In report highlights the increase in angel investors supporting female-founded companies and how many women are “on the other side of the table” from female founders, or had “check writing” authority.

In 2019, according to data from Pitchbook, only 12% of check writers in the U.S. were women. Now, 15.4% of venture capital executives able to make investments are female. Although this may seem small, BTB points out the ripple effect of venture capital executives being able to make investments. Female founders are more likely to look for female investors, and the likelihood that a female-founded business is able secure financing can increase if there’s a female investor. I look for companies that are woman/minority-founded, have strong social/environmental missions, and where they aim to lower the barriers to playing golf, said Michelle Wie West, a professional angel investor and golfer.

Women VC executives have been on the rise across the country in areas like Silicon Valley, where 17.1% of general partners are women, New York City (16.8%), Boston (14.5%), and LA (12.9%). New York saw the biggest increase amongst the four, as women only made up 11.8% of all NYC-based VC executives this time last year. There have been increases in VC activity for female-founded businesses in areas like fintech, health care and tech.

Many female founders have set out to inspire and empower the next generation entrepreneurs and innovators. Katie Rae , CEO of The Engine, an institution for tech companies. Equity Summit is a virtual conference that promotes industry change and “brings people together to get more funds into the hands women.” “

” I launched Equity Summit with Trae Vassallo , and Mar Hershenson in order to provide underrepresented investors access to professional networks and exposure. She said this in the report. There are many issues that must be solved today and there are many talented women who can help. “

Though there is still work to be done, as 84.6% of GPs are men and male-led businesses still have an advantage, there is undeniable growth in female-founded companies nationwide, and they’re expected to gain even more momentum next year.

Check out:

She co-founded a $1 billion fintech start-up in Asia — and wants to show other women they can too

Women get better returns on their investments than men–here’s why

For the first time, 30% of all S&P 500 board directors are women

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