The State Of Venture Capital - Female-Founded Companies Secure Only 3% Of Investments

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A new report shows that female-led companies received only 3% of venture capital investment in the first half of 2019:

detailing the gender split of venture investments made in the first two quarters of 2019. The report shows that female-started companies received only 3% of the combined invested capital.

One reason could be, that because investors are statistically less likely to invest in female-founded companies, talented women consider starting a company low-likelihood of success. That could cause them to choose alternative careers in fields where they perceive success as more likely. If so, we have a ‘chicken or the egg’ situation.

It is worrying if the recent focus on inequality have brought on the perception that things are improving, if, in reality, they are not. This misconception could cause complacency. To combat this, shedding light on the facts of the situation is the only way forward. But doing so may also have negative side effects. I can’t help but wonder if women are choosing alternative careers because of all these negative statistics and stories. It doesn’t exactly make one feel welcome.

 

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