Funding for start-ups founded by women is surging.

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DealBook|Funding for start-ups founded by women is surging.

Alisha Haridasani Gupta

  • Nov. 2, 2021, 7:00 a.m. ET

Last year, task superior backing for companies founded by women successful the U.S. dropped substantially. But new probe from PitchBook suggests that alteration is afoot.

U.S. task superior raised by female-founded companies

The commencement of the pandemic had a disproportionate impact connected investments successful companies with astatine slightest 1 pistillate founder. The fig of deals involving companies with all-male founders dipped 5.4 percent successful June 2020 compared with March, past roseate again done the extremity of the year. But concern enactment successful companies with a pistillate laminitis dropped astir 30 percent and remained suppressed for overmuch of the year, PitchBook information shows.

This year, start-ups with pistillate founders person fared overmuch better. They person raised much task superior dollars and person executed much exits astatine greater values than astatine immoderate constituent successful the past decade. Start-ups with a pistillate laminitis raised much than $40 cardinal done September, almost double the magnitude invested successful companies founded by women successful each of 2020 oregon 2019.

Much of the concern surge was concentrated successful the tech, wellness attraction and retail industries.

Still, those investments represented a tiny portion of the wide market, amounting to astir 18 percent of the $239 billion raised by each task capital-backed companies done September.

The PitchBook study suggests determination is simply a increasing excavation of pistillate angel investors and wide partners astatine funds who are actively looking to enactment pistillate founders. At the extremity of 2019, 12 percent of wide partners astatine task superior firms were women and determination were 740 pistillate angel investors. Today, women marque up 15 percent of wide partners astatine task superior firms, and determination are present astir 1,000 pistillate angel investors.

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