![]() ![]() 2019: Julie Wainwright’s The RealReal ($2.4B at IPO, $2B today). ![]() 2018: Julia Hartz’s Eventbrite ($2.8B at IPO, $2B today).2017: Katrina Lake’s Stitch Fix ($1.6B at IPO, $8.7B today).Since 2017, notable female-led unicorn IPOs have included: Furthermore, exits by female-founded companies increased 16% year over year while male-founded exits declined by 2%, and the value of female-founded startups that were sold or taken public in the first nine months of 2020 was up 30%, compared to 2019. In 2020, the average amount of private funding raised by women-led companies that IPO’d was $71M, as compared to $300M for the IPO market overall. Importantly, female-founded companies have achieved these exits on far less capital raised. Source: Pitchbook US VC Female Founders Dashboard Given COVID-19 dynamics (discussed further below), 2020 also represented a deceleration in the growth rate of total capital invested in female-founded startups, with 5-year CAGR dropping to 15%, the first time it has fallen below 20% since 2013. To put this in perspective, out of $156.2 billion that US investors deployed into private markets in 2020, female founders received just $22.6 billion. According to Project Diane, the proportion of Black women founders receiving funding also increased from 40% to 57%, and Latinx women founders from 64% to 70% between 20.Īt the same time, all-female founding teams raised just 2.1% of total VC dollars, down from a peak of 2.6% in 2017 and 2.5% in 2019, and the subset of these dollars raised by Black and Latinx women founders was 0.64%. Notably, the proportion of entirely female-founded companies increased from 6.2% to 6.5%, and in 2020, for the first time, startups led by Black and Latinx women crossed the $3 billion threshold in total funds raised, up from $1 billion in 2018. In 2020, 2,641 venture capital-funded deals for female-founded startups closed for a total of $22.6 billion, according to Pitchbook, compared with $22.2 billion invested across 2,785 deals in 2019. If we’ve missed any deals, please email and let us know. We also discuss COVID-19’s effect on female entrepreneurship and weakness in overall fundraising, which was countered by bright spots in segments such as digital health and social networks led by female founders. ![]() Below, we’ve outlined fundraising metrics on the number, size, location, industry, and exit outcomes for female-led companies. ![]() In addition, by shining a light on the early Series A/B rounds, we are able to identify shifts in capital allocation trends as these companies scale.Ģ020 showed both positive and negative results in business-building for women. With this Annual Report, we aim to track the numbers, beginning with the first institutional round of capital - often the hardest for founders to secure. Since then, this proportion has hovered at or just below 3%, but we have seen steady growth in the number of female-founded startups raising follow-on and later-stage rounds of capital.įemale Founders Fund launched in 2014 with a simple investment thesis: women will build the companies of tomorrow and we will back them. As Women’s History Month concludes, Female Founders Fund is back with its annual review of the state of female entrepreneurship and funding in the United States.īack when we first published this report in 2014, female entrepreneurs received just 2% of total venture capital dollars invested into early stage companies. ![]()
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