advertisement
advertisement

Report: Funding to women startup founders dropped in 2020 and it was already dismally low

But Crunchbase data finds that more women-led companies went public this year, including Bumble, Figs, Maven, and Savage x Fenty.

Report: Funding to women startup founders dropped in 2020 and it was already dismally low
[Source Photo: rawpixel]

According to the latest report from Crunchbase, there’s good news and bad news for female founders in 2021.

advertisement

First, the bad news. Funding to women founders dropped 22% year-over-year in 2020 and dwindled to just 2.2% of all venture funding through August of 2021. This is lower than what it’s been the past five years. However, with a male cofounder alongside, that number jumped to $15.9 billion or 11.7% of total funding.

Now for some positive stats: Venture capital investors were putting their dollars into seed and early-stage startups founded by women. Sixty-one percent of total funding that went to female-founded companies this year was to startups in those stages of growth.

And finally, 2021 was a banner year for IPOs of women-led companies. They include Whitney Wolfe Herd’s Bumble, healthcare apparel company Figs, digital health platform Maven, and Rhianna’s Savage x Fenty, all of which are firmly in unicorn territory with valuations over $1 billion.

advertisement
advertisement
advertisement
advertisement

About the author

Lydia Dishman is a staff editor for Fast Company's Work Life section. She has written for CBS Moneywatch, Fortune, The Guardian, Popular Science, and the New York Times, among others.

More