Only 3% of Business Investment Goes to Women, and That’s a Problem for Everyone

Women represent 40% off all entrepreneurs in the country they only receive 2% of investment funding. That's a problem for everyone.

A 2020 Crunchbase report shows that even if we combined VC investment in female-founded and mixed co-founded companies in 2019, it still amounts to only 9 percent of all investment. Considering women represent over 40 percent of all entrepreneurs in the country, and plenty of statistics showing that women significantly outperform men in business, a lot more needs to be done. 

Everything we know about business tells us that more investment in women means more than innovation and reach in an industry, it also provides economic growth and social benefit for the nation. After all, who better to cater to the female half of the world’s population than women? And women, by the way, make 80 percent of purchasing decisions in the home in the U.S. Morgan Stanley estimates that investors are missing out on businesses worth $4 trillion in revenue annually by not investing in more female- and minority-led enterprises.

We can’t continue to talk about investment in women as a pipeline issue; the talent is there, as are the organizations connecting them to VCs. Any investor who says they can’t find female entrepreneurs probably isn’t trying hard enough.


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