New from our CEO Wendy Cai-Lee’s article on Forbes: “The Unspoken Rules of VC Still Hold But Women Founders Are Learning How to Rewrite Them“
Venture capital (VC) funding is soaring in 2025. Crunchbase News reported that global investment reached $97 billion in Q3, marking a 38% year-over-year increase. This growth is largely fueled by the AI boom, which the report says accounted for 46% of global VC funding in Q3. Yet for women founders, especially those outside the AI sector, the landscape remains challenging, with continued underrepresentation in VC investment. Deal counts for female (co-)founders dropped to just 699 in Q3 2025, marking the lowest point since 2017. Why is this the case, and what can women founders do?
The Perception Gap
Women founders continue to face systemic barriers in securing venture capital, largely due to the male-dominated nature and culture of the investment ecosystem. Gender preferences and stereotyping among funders play a significant role. An analysis of 90 pitches from three different entrepreneurial pitch competitions found that investors were 60% more likely to favor pitches from male entrepreneurs, even when the content was identical. When the same pitch was narrated by a male voice, 68% of investors chose to fund it, compared to 32% when the pitch was narrated with a female voice.
A Myth Proven Wrong
The myth that women founders are less deserving of funding is not supported by data. On the contrary, the numbers show that female-led startups consistently outperform their male counterparts in key metrics. In fact, they achieve more with less. BCG reviewed five years of investment and revenue data and found that female-founded companies generate 78 cents of revenue for every dollar raised, compared to just 31 cents for male-led startups. Female-led teams are also more capital-conscious than their male counterparts, burning 15% less capital (registration required).
Breaking Through The Bias
Women founders need to overcome the gender bias because it continues to limit access to capital and opportunities, despite their proven performance. This imbalance isn’t just unfair—it’s a missed opportunity for investors and the economy.
Female founders must strategically leverage their strengths by showcasing their vision, resilience and ability to deliver strong results. We need to shift the conversation from gender to business performance. To do this, women need to focus on building diverse teams, targeting investors who believe in performance data and tapping into supportive networks.
Here are a few actionable strategies that can help women navigate the VC world and break down the barriers to success:
1. Speak the language of the ecosystem.
Let’s face it: About 98% of VC assets under management are controlled by white men, and they direct the majority of funding to white male founders. Stories like how female founders used a fictional male to beat sexism are more than telling of the male-dominant reality of the VC world. For female founders, when raising funds, focus on financial metrics, growth potential and capital efficiency. Avoid framing the pitch around gender. Highlight industry knowledge, product expertise, talent bench strength—all of which can be supported with quantitative data. Be measured but aim high.
2. Build a diverse team that defeats skepticism.
A diverse team is more than a checkbox; it’s a strategic advantage. By incorporating talent from varied backgrounds and levels of experience, and even robust male leadership, you are better positioned to help neutralize the biases that exist in the VC world. Let your team’s expertise and vision do the talking.
3. Target the right investors.
Data shows that investor diversity correlates with higher funding for female founders. In fact, one study shows that female VCs are particularly active in early-stage investing, investing in female-founded companies at a rate of two times higher than male VCs. This was key to my company’s founding six years ago, as we were backed by a female-led investor pool. Today, 78% of our board members are women.
4. Invest in networking.
Networking remains one of the most powerful tools for women founders, and I recommend working to build connections in cities that back female founders: New York City, San Francisco, Los Angeles and Boston all have higher percentages of female VC decision makers compared to the national average. Additionally, San Francisco and New York City have the highest percentage of female decision makers in leadership roles, leading other cities in the U.S.
5. Explore alternative capital structures.
VC is just one avenue for capital. Female founders can also leverage other sources of funding. Today, private investment and banking products are increasingly working together to support startup growth. For example, as your business grows, they may open up a range of avenues for additional capital, including revenue-based lending, asset-based lending, supplier financing, invoice financing and bank-sponsored venture debt. These options provide flexible capital without diluting ownership and are increasingly accessible.
6. Pay it forward.
Support among women founders is not just empowering—it’s essential. We must build the kind of referral and support ecosystem that male founders have long benefited from. That means referring business to one another, buying and selling from each other and supporting talent migration and growth. All things being equal, I choose to work with a woman. If you need an accountant, seek out a woman-led firm or ask for a female partner. If you’re buying office furniture, find the female sales associate. These choices compound over time and help build a sustainable, inclusive business ecosystem.
While the gender gap in VC funding persists, female founders continue to break through. Success stories like those of Anthropic’s mega-round, Lucy Guo’s success as the youngest self-made female billionaire and Mira Murati’s role as CTO of OpenAI serve as powerful examples of how performance speaks louder than bias. After all, a rising tide lifts all boats.