Girls founders and traders raised $38.8 billion in funding within the U.S. in 2024, up 27% from the yr earlier than, in keeping with PitchBook.
The report was created by PitchBook Information’s Nizar Tarhuni, Paul Condra and Garrett Black. The variety of transactions involving ladies founders is down 13.1%, as deal exercise continued to pay attention amongst a smaller inhabitants of corporations.
Total, feminine founders took residence a smaller share of whole U.S. VC funding for the yr by way of each deal rely and worth. In 2024, feminine founders had been concerned in 25.1% of all offers, in comparison with 26.4% in 2023. And feminine founders had been 19.9% of whole VC deal worth in 2024, in comparison with 20.8% in 2023. It’s clear that male founders dominate tech startups.
The unhealthy information? Effectively, the offers slipped in 2024, when funding was bouncing again. And one of many charts beneath exhibits that female-only groups accounted for two% of total VC in 2024. That’s, when there’s a man invovled as a founder alongside a girl, the corporate has a fairly good likelihood of getting cash. When it has solely feminine founders, it has a horrible likelihood of getting cash.
Recreation deal information is far worse
Nevertheless it’s far worse within the recreation trade by way of feminine illustration amongst funded startups. Within the male-dominated panorama of recreation startups, ladies had been solely 0.11 p.c of the sport VC deal worth in 2024, worse when in comparison with 0.18% in 2023.
Feminine founders in recreation corporations raised an estimated $215.7 million in offers in 2024, up from $163.2 million in deal worth in 2023. And feminine founders had been 0.26% of whole deal rely for recreation startups in 2024, in comparison with 0.56% in 2023.
PitchBook mentioned sociopolitical tides are shifting with renewed motion in opposition to variety, fairness & inclusion (DEI) and ESG initiatives, which is able to impression the trajectory of founder demographics within the US. The diploma of impression stays unsure. President Donald Trump’s government order to finish DEI initiatives and associated ongoing authorized battles will take a while to settle and be mirrored in funding figures.
Nonetheless, PitchBook mentioned it’s notable that the entry factors for underrepresented founders could slender
once more within the face of latest challenges, a minimum of till authorized precedent is determined. Feminine founders will undoubtedly proceed to innovate and lift new capital within the yr to return, however a extra even demographic cut up for VC funding stays farther on the horizon, PitchBook mentioned.
On the great facet, PItchBook mentioned that beneficial properties, although uneven, had been made by feminine founders in 2024. Later stage corporations and people working in choose software program and healthcare subsectors noticed substantial funding momentum. The variety of newly minted unicorns rose materially as 13 female-founded corporations crossed the coveted $1 billion valuation threshold.
Feminine founders additionally secured a report 24.3% of whole US VC exit rely in a constructive sign notably for traders who work with these founders.
The 2024 US All In report is made attainable by sponsorships from Wilson Sonsini, Constancy Personal Shares, and Flourish Ventures.
On the excessive degree within the U.S., bigger checks and a slower decline in deal rely drove extra worth for feminine founders. The yr 2024 outpaced 2023 for the third-highest annual degree of capital raised by VC deal exercise for all-female-founded corporations.
As of December 31, 2024, a extra muted 7% discount in deal rely, illustrating a disproportionate
decline for female-founded corporations. feminine founders. Annual deal rely remained barely increased than its pre pandemic norms and declined at a slower fee than in 2023, indicating some confidence returning to investor communities. All-male-founded and all-female-founded corporations skilled comparable traits in 2024, although the all-male class noticed the next 33.2% development in deal worth and The inverse development between deal worth and rely demonstrates the facility of mega-financings for a extra choose inhabitants of corporations whereas the broader base of corporations continues to face challenges. This development can be VC deal exercise for all-male-founded corporations
Throughout all US offers, pre-seed/seed deal quantity took an outsized hit whereas the extra mature venture- development stage elevated in deal quantity, and this development carried over for female-founded corporations as nicely.
Feminine founders’ share of whole U.S. VC deal exercise trended downward in 2024.
Feminine founders took residence a smaller share of the nation’s whole VC deal exercise in 2024. Their share of deal worth, which is usually extra unstable and pushed by market results, declined by lower than a share level to only beneath 20%. Their share of whole deal rely declined for the third yr in a row to its lowest degree since 2018 however remained above the 25% threshold.
Given the variety of variables concerned in an organization closing a deal, feminine founders’ share of whole funding exercise is unlikely to observe a wonderfully linear development every year, however the long term development strains point out progress towards parity.
Analyzing the previous 10 years of annual deal counts reveals stronger CAGRs of 5.5% for all-female based corporations and three.8% for female-founded corporations in contrast with 1.1% for all-male-founded corporations. The subsequent decade of development will depend upon the evolution of at the moment’s fledgling corporations, socioeconomic elements, and the event of investor relationships.
Median early-stage VC pre-money valuation ($M) Feminine-founded firm valuations rose throughout all levels in 2024 alongside broader US exercise, however a big hole stays between the 2 classes on the late- and venture-growth levels.
With these mature corporations driving extra exercise in VC markets, this hole has an outsized impression on the general disparity in female-founded firm valuations. Nonetheless, the variety of venture-growth offers closed by feminine founders has grown for the previous two years, which may assist shut this hole in time.
Verify sizes additionally rose throughout the board in 2024. The median test dimension for female-founded corporations
skilled quicker YoY development than median VC deal worth ($M) as a result of they didn’t increase further
rounds. Whereas test sizes are rising for those who safe new rounds, feminine founders are sustaining
a decrease median VC burn fee—the distinction in capital raised and the variety of months between rounds— the broader US class at one-third and almost one-quarter, respectively.
This development displays the extra selective cohort of corporations receiving funding over the previous two years, as nicely because the affect of scorching applied sciences comparable to AI which are attracting bigger investments. The development of corporations by successive funding rounds, known as the “VC funnel,” illustrates the variety of corporations that aren’t counted towards these median figures than the broader US class. Whilst
VC sentiment improves, bottom-line controls stay a precedence.
In 2024, feminine founders’ share of enterprise funding hit its lowest degree in 5 years, with early-stage financing taking the best hit. Regardless of these headwinds, traders and founders alike are discovering methods to adapt. Feminine entrepreneurs proceed to construct modern, high-growth enterprises, and traders are recognizing the market potential of female-led startups. PitchBook mentioned the important thing query is: How will we flip the tide and be certain that feminine founders obtain the capital they should thrive?
Lisa Wu Associate at Norwest Enterprise Companions, mentioned in a dialogue within the report, “As investors, we have the power to reverse this funding trend by actively seeking out and investing in female led companies and by hiring more female investors. Studies show that female investors are more likely than male investors to invest in female founders. At the same time, female founders should not be discouraged by this stat and instead stay focused on the basic fundamentals of building a strong business.”
She added, “A founder’s ‘founder market fit’ is crucial when starting a company, and female founders are particularly well equipped to create products and services for the female demographic, which holds the highest purchasing power. Women manage an estimated $32 trillion of global spending and are expected to control 75% of discretionary spending worldwide in the next five years. When female founders build products for female customers, they leverage their own understanding of women’s needs and experiences to create products specifically tailored to address pain points and desires that might be otherwise overlooked.”
