Venture Capital/VC/News/ Female founders are more likely than men to attract later-stage VC funding New data shows that female startup bosses who succeed in raising a first round are (ever so slightly) more likely than men to attract funding later in the game By Kim Darrah 10 October 2019 \Deeptech How war in Europe is making VCs bite the bullet and back defence tech By Mimi Billing 25 January 2023 Venture Capital/VC/News/ Female founders are more likely than men to attract later-stage VC funding New data shows that female startup bosses who succeed in raising a first round are (ever so slightly) more likely than men to attract funding later in the game By Kim Darrah 10 October 2019 Female founders are more likely than men to attract later-stage venture capital funding, according to a new report from the Female Founders Forum. The data from the UK shows that, once funded, the percentage of startups with a female founder that raised additional rounds of capital is 52%, compared to 51% for male-led startups. While only a marginal difference, these statistics shine a stark light on how by far the biggest hurdle by far for female entrepreneurs comes in the initial stages of setting up a business, rather than later on. In the early stages, the figures in funding are dismal for female-led startups, with just 21 per cent of female-founded startups winning any investment at all. But after winning first-round funding the situation improves markedly, with female-founded startups even going on to raise cash more quickly than male-founded ones. For startups five or more years on from their first raise, 66.5% of female-founded startups secure a second funding round, compared with 62.8% for male-led startups. By this point, female-led startups are also slightly more likely to have secured a third funding round, with 42.8% having done so compared to 41.8% for startups without a female founder. Source: Female Founders Forum In this study female-founded businesses are defined as startups which include at least one woman in the founding team (even if it has a man too). The report is based on UK data, but the same kind of pattern can be found elsewhere. Research released last week about the US startup ecosystem showed that, once funded, female-founded startups raise on average over 25% more in venture capital funding than those with all male teams. The US-based research found that this apparent advantage for female teams strengthens with each successive funding round. To see our list of diversity support groups across the UK (and beyond) – click here. In the UK, some of the biggest raises came from female-founded startups last year, including £117.5m from biotech startup Orchard Therapeutics and £38m from cyber defence company Darktrace. Annabel Denham, head of the Female Founders Forum, emphasised the importance of female networks and role models. “We need more investment to pour into these firms, more female networks and many more role models to inspire the next generation,” she said. Related Articles “The pitching process is broken” By Ian McDonald Click here to read more “Nepotism is rife, innovation is rare and diversity is a sham” By Secret VC Click here to read more “Diversity from day one” By Amy Lewin Click here to read more Most Read 1 \Healthtech Is Daniel Ek’s new body scanner worth the hype? Sifted tried it out 2 \Venture Capital VC diversity needs to change — and white men need to take responsibility 3 \Venture Capital New €3.75bn European Investment Fund pot to back late-stage VCs 4 \Sustainability Counteract closes £15m fund for carbon removal solutions 5 \Mobility Was the $5bn that VCs plugged into escooters worth it?