Female-Led Startups: A Fraction of the Pie

In the dynamic realm of Web3 venture capital (VC) investments, a recent report by Bitget Research sheds light on a stark reality — only 6.43% of the colossal $27.85 billion has found its way to startups created or led by women in the past two years. The figures, though, extend beyond mere statistics.

The Gender Discrepancy Breakdown

Between Q1 2022 and Q3 2023, female-led Web3 startups managed to secure $1.77 billion of the total VC funding, leaving male-led counterparts in control of a substantial $26.08 billion. Surprisingly, female-led Web3 startups constituted less than 9% of all startups in the sector during this period. The definition of a "female-led blockchain startup" in this study hinged on a criterion — at least 50% of its executives being women.

Gender-based Breakdown of Blockchain Startup Funding: Q1 2022 to Q3 2023. (Source: Bitget Research)

Broader Trends in VC Funding

Regardless of gender, the Web3 VC funding landscape witnessed a downturn, plummeting from about $6.4 billion in Q1 2022 to a nadir of $2 billion in Q2 2023. A modest recovery ensued in the subsequent quarter. However, a concerning observation, as highlighted by the researchers, arises:

“8.2% of funding for female-led blockchain startups as of Q3 2023 is 2.5 times lower than the overall figure for startups in various fields (20.3%). This indicates the need for comprehensive measures to increase the inclusiveness and accessibility of the blockchain sphere for women.”

The Alarming UK Scenario

Bridget Greenwood, founder of The Bigger Pie, a global networking organisation supporting women in blockchain, points out a distressing fact related to VC funding in the UK. She asserts, "Of all VC funding [in the U.K.], only 3% goes to female founders, 8% goes to mixed teams, and the rest goes to all-male teams." This sentiment underscores a pervasive issue beyond the broader statistics.

Unveiling Biases in VC Decisions

In an eye-opening experiment, Canadian and American researchers delved into the biases within venture capital. The findings were striking — predominantly male venture capitalists exhibited bias against displays of feminine-stereotyped behaviours by entrepreneurs. This revelation hints at underlying challenges that transcend mere numerical representation.

Bridging the Gap

While the Web3 VC funding landscape pulsates with innovation, the evident gender funding gap is a cause for concern. Bridget Greenwood's perspective sheds light on the pressing need for transformative measures to ensure equitable opportunities. As the blockchain sphere evolves, fostering an environment that embraces diversity becomes paramount for sustained growth and inclusivity.