From the course: Getting to Yes: Advice for Female Founders on How to Get Funded

The gender divide is real

From the course: Getting to Yes: Advice for Female Founders on How to Get Funded

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The gender divide is real

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- It's pretty interesting. So, we look at a lot of female founders and we have a lot of female founders as deal flow that come into our office and one of the reasons for this is because women are only getting 2% of the venture capital dollars that are out there. We look at this as the ultimate inefficient market. It's one that is being screamed from the rooftops, but nobody really is seeming to pay attention. So, at 1843 Capital, we have our eyes wide open and we're excited to meet all the interesting women entrepreneurs that we come across. The female funding gap is a serious problem in the United States. There is not equity of opportunity for female founders that are building companies. And there is not equity of access to capital. Right now, female founders receive only 2% of the venture capital dollars that are allocated. This is despite the fact that more than 20% of the companies now have a female founder on the team. This lack of access to capital inhibits the growth of female founders. It also presents a really interesting opportunity for investment. There's a study by the Boston Consulting Group that has shown that women founders on average receive less than half of the dollars. So, it's not even the numbers, fewer numbers of women founders are getting funded. But when they're getting funded, they're only receiving half the capital that traditional all male teams are getting. The study also showed that despite receiving less than half of that capital, women founders are building companies that are 10% more profitable. So, you have on one hand a lack of funding but you have on the other hand a whole cohort of companies that are outperforming the market. This is something we found very interesting at 1843 Capital and it's why we are focused on investing in women founders.

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