Funding for Female-Led Startups Declined in 2023 finds WinPe Report

By: WE Staff | Thursday, 16 May 2024

WinPe, a non-profit organization focused on gender diversity in private equity released a report showcasing a significant gender disparity in Venture Capital (VC) funding for women-led startups in India, with female founders receiving less than 10 per cent of funding in 2023, highlighting the need for increased representation of women in investment evaluation processes. The report indicates a decrease in women-led startups in India from 14.7 per cent in 2021 to 9.3 per cent in 2023 in VC funding.

The International Finance Corporation (IFC) data reveals that only 11 per cent of seed funding goes to startups with women on their founding teams, and even lower for late-stage funding, highlighting the gender gap in funding. Nupur Garg, Founder, of WinPe states, "All investors say they will back the best idea, but that is influenced by stereotypes and unconscious biases." In 2023, women-led startups experienced a drop to single digits due to a sharp drop in venture capital investors following a record $38.5 billion inflow to Indian startups in 2021. Women own only 18-20 per cent of startups in India while 18-20 per cent of unicorns have women as cofounders, the report mentioned.

3one4 Capital's partner, Nruthya Madappa, argues for more women representation in investment evaluation processes and a correction in the industry's biases. She highlights rare examples of women-only-founded companies like millet-based ready-to-cook mixes, cereals maker Slurrp Farm owner Meghana Narayan and Shauravi Malik, and protein bars maker Yogabar, founded by Suhasini Sampath, Anindita Sampath, and Ahana Gautam received VC funding.