A new report from PitchBook, titled “All In: Women in the VC Ecosystem,” shows significant progress being made for more venture capital investment going into female-founded startups, with funding in 2017 and 2018 reaching all-time highs. The report was released in partnership with All Raise, Goldman Sachs’ Launch with GS, and Microsoft for Startups and details progress and barriers to investment in female founded companies, as well as the importance of women investors.
In 2018, VC investment in startups with at least one female founder reached $46 billion, more than doubling the total from 2017 and representing almost 20 percent of total VC investment. Deal count also reached a record high in 2018, with the report suggesting that market awareness of gender inequity, as well as mentorship networks and a rise in general partners all helped female-led startups achieve success.
Geography and industries were analyzed in the report, with findings concluding that the highest VC investment was to female founded startups in the Bay Area, Los Angeles, and New York and the most popular sectors were pharma and biotech. Additionally, the report also noted that female VC partners are twice as likely to invest in female founded startups and more than three times as likely to invest in startups with female CEOs
“This report shines a spotlight on the undeniable need for more diversity on both sides of the table. Without more women in leadership founding and funding innovative companies, we are leaving money on the table instead of expanding the pie for everyone,” said Pam Kostka, CEO of All Raise in a press statement. “By enabling more female founders to raise funding and female funders to make investment decisions, we can build a more prosperous, equitable future.”
