Women in the VC World: $5 Trillion of Untapped Potential

Although gender equality in the labor market is slowly progressing, the world of startups and venture capital remains almost closed to women. According to the report by Founders Forum Group – Women in VC & Startup Funding 2025, female founders currently receive only 2.3 percent of total venture capital investments. Believe it or not, this is progress, but it is so slow that if it continues at this pace, equality in this business arena will not be achieved until 2065.

They warn that this is no longer just a matter of equal opportunities but also of a missed economic potential greater than $5 trillion. More precisely, of the total global VC investments, which rose to $289 billion in 2024, male teams received over 83 percent, mixed teams 14.1 percent, and the remainder went exclusively to female teams.

In later stages of growth, the picture is even more disheartening. The share of women drops from 3.2 percent in seed rounds to just 1.8 percent in Series C+ stages. Researchers call this phenomenon leaky pipeline: as a startup progresses, the barriers become greater.

Structural Barriers

In addition to fewer opportunities, even when women do secure investments, they receive smaller amounts. Specifically, the average amount that women receive does not exceed $5.2 million, while men receive $11 million. The problem, as shown by Women in VC & Startup Funding, also lies in the distribution by industrial sectors.

Women are most represented in edtech, healthtech, climate, and consumer industries, and these sectors attract a smaller share of capital. In contrast, ‘male’ sectors such as AI, cybersecurity, and enterprise software receive multiple times more investments, creating a structural handicap and slowing the growth of companies led by women.

For all those skeptics who will say that this is not about gender inequality but simply about less lucrative industries in which women operate, the report presents another alarming statistic, highlighting that the barriers are not only structural but also cultural.

Defensive Questions

During the pitching process, for instance, women are more likely to face so-called defensive questions. Investors more frequently ask women what will happen if things go wrong or what the risks are, they are interrupted more often during project presentations, and the financing process takes longer. Men, on the other hand, are more likely to have the opportunity to express their passion and ambition, as they are asked questions about their goals and aspirations.

Moreover, most VC investments come through warm introductions, a term that refers to introductions through mutual acquaintances, and women, who have 38 percent smaller network of contacts, start from a position of lesser access to capital.

The authors of the report warn that without changing the investment model, including more women investors, and establishing more transparent criteria, progress will continue to be slow. On the other hand, where women are given the opportunity to decide on capital, investments have become more diverse and returns better.

Women in the world of venture capital, therefore, are not just a matter of inclusion and quotas but of economic rationality. In short, investing in women brings greater value to everyone.

Participants of the 15th anniversary Women in Business conference, which will be held on December 4 at the Mozaik Event Center in Zagreb, will share their thoughts and experiences in business, relationships with people, and management styles. The conference will also feature the presentation of the Lider list of the 300 most powerful women in business and the awards for the top 10. You can secure your place at the conference via the link.