Gender Bias: Female-Led Firms Struggle to Secure Funding

Technology startups founded by women are receiving a mere 3.5% of equity funding in the first half of 2023, while male-led companies are securing a staggering 73% of the funding, according to recent data. Although there are no specific figures available for the ratio of male and female-led tech startups, a report by The Gender Index reveals that women-led companies make up just over 17% of the total market.

The gender disparity in equity investment becomes even more apparent when looking at the numbers. A market update report from Beauhurst shows that companies with all-female founders received only 2p for every pound of equity investment in 2022. In contrast, all-male founding companies received a significant 85p in the pound.

However, there is a glimmer of hope for women in the tech industry. High-growth companies with a female founder managed to secure 27% of equity deals in the UK during the same period, marking an increase from 24% in 2021. Furthermore, companies founded solely by women achieved a record-breaking 9% of investments, the highest level to date. Companies with mixed-gender founding teams maintained their 18% share of investments in 2022, while companies founded solely by men continued to dominate with 73% of investments.

It is evident that women need to be recognized and supported both in the marketplace and the workplace. This shift in attitude requires mentorship, leadership, and the development of electronics design skills. To promote women in the workplace and highlight women who lead companies, Electronics Weekly will be hosting the Women Leaders in Electronics Awards on April 23rd at the De Vere Grand Connaught Rooms in London.

The Women Leaders in Electronics Awards is an initiative created by Electronics Weekly to amplify the voices of women in the international electronics industry. The awards aim to recognize and celebrate women who demonstrate exceptional leadership, guidance, and promotion of good practices in management and electronics design. It is important to note that the Women Leaders in Electronics Awards is an emap event and is not affiliated with the Women in Electronics (WE) community based in California, USA.

If you are interested in participating in the Women Leaders in Electronics Awards evening, please visit their website for more details.