The COVID-19 pandemic has had a negative impact on businesses around the globe, but female entrepreneurs have been hit particularly hard.
According to data released by Pitchbook in October, venture funding for female founders has hit its lowest quarterly total in three years. In Q3 2020, U.S.-based female founders raised just $434 million across 136 rounds, a sharp decrease from $841 million in Q2 2020.
While the pandemic has exacerbated the disparity, women entrepreneurs have long lagged their male counterparts in the opportunities available to them – even when their ideas, potential, and results are just as good, or better. According to the Kapor Center, only 17 percent of all venture capital-backed tech founders are women. But First Round Capital has reported its female-founded companies performed 63 percent better than its all-male teams, and research from the Kauffman Foundation shows that women-led teams generate 35 percent higher returns on investment than all-male teams.