Despite gains, gender diversity in VC funding struggled in 2020

For decades, people have been discussing the importance of expanding opportunities for women in venture capital and startup entrepreneurs.

And for some time it has been seen that progress is being made in creating a more diverse and equitable environment. The prospect of many more women writing checks was seen as positive by female founders, a group that has struggled to attract more than a fraction of the funds managed by their male colleagues.

All-female teams have a special time to raise capital compared to all male teams by reducing inequality. COVID-19 then appeared and shook the enterprise and startup scene, creating a risky environment towards the end of Q1 and the beginning of Q2 2020, after which the initiative became a safe haven for the software sales business. 

And when it became clear that the vented digital transformation of large and small businesses was accelerating, more capital appeared. The data, however, indicate that the new capital torrent has not been evenly distributed – in fact, some of the progress that the female founder has lost in recent years has been somewhat reduced.

To a large extent, many female founders are still going out. The exchange has reached out to most American and European investors and founders to gain their perspective on how today’s venture market treats female founders. Repetition in responses was a common perception that more women entrepreneurs would help reduce the gender gap in investment, and VCs became more conservative due to CVV-19 and its associated economic disruptions, with founders returning to capitalize to replicate their existing networks, both. Groups that is less diverse than the pool of new founders.

The collection of our founders and investors further states that women were particularly reluctant to take on more domestic responsibilities during the epidemic due to sexist social expectations, adding that sexuality generally remains a problem that either does not improve or improves very slowly. However, in the case of venture funding, we examine the data from last year before going into the key issues that hinder the improvement of gender equity, and vice versa.