Female-founded companies are raising venture capital at significantly higher levels than at any point in the last decade, suggesting that long-standing efforts to boost representation in entrepreneurship are paying off at an accelerating rate.
In the first half of 2021, US venture-backed companies with a female founder or co-founder took in $25.12 billion, more than the total amount raised in any prior year.
The advances come as women founders raise a greater share through late-stage deals and high-value sectors. Also helping: More women are writing checks at VC firms, and the networks of female founders in places like New York have matured.
But a deeper look into the data highlights stubborn realities for female founders. The gap in funding between all-women teams and mixed-gender teams continues to grow. And female-founded startups’ share of overall VC dollars remains small.