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VC funds must be proactive to boost capital for underserved female founders

Female founders VC
Image credit: Gorodenkoff / Shutterstock

Male-owned venture capital funds have received 10 times more LP capital than female-owned funds in the last six years in the UK. It’s a shocking statistic, but unfortunately not an entirely surprising one.

While more women are entering the sector, the report estimated that currently only 21% of senior roles within venture capital firms are held by women. It’s easy to see how this gender disparity at the fund level can set off a chain reaction, with female-led startups also less likely to receive funding.

In fact, there has been no improvement in the share of venture capital investment to female founder teams over the last decade, according to a report from the British Business Bank published in July.

An estimated 27% of deals went to teams with at least one female founder in 2022, with all-female teams accounting for only 9% of deals. That meant they received a mere 2% of the total amount of equity investment that year, reflecting no improvement since 2011....