A study by EY shows that only a fraction of capital flows into female-founded startup teams. According to the study, approximately 87 percent of the capital goes to male startup founders,” as reported in the Handelsblatt.
“The share of female founders in Germany is still too low,” said Verena Pausder, chairwoman of the Startup-Verband. This is also due to the heavily male-dominated investment landscape. “Men tend to invest more in other men.” This results in significant economic value being lost to the economy. “Women recognize different trends, customer needs, and business models – therefore, their initiatives must find financing just like exclusively male teams.”
In investments involving very large sums, the gender disparity is even greater, according to the EY study. While women comprised 12.2% of all startups that received funding in 2023, the proportion of women among startups securing at least €50 million in funding was only 1.8%.
The share of female founders is highest in startups within the healthcare sector, whereas it is notably lower in technology startups.
Posted by herCAREER,
Published on LinkedIn on 18.03.2024
