LinkedIn News Australia recently interviewed me about the underrepresentation of women in the startup ecosystem.
At first glance, the statistics paint a bleak picture; according to the Q3 Cut Through Venture report, only 4% of total capital raised in Australia went to female-only founded teams, and just 13% to female co-founded ventures.
These dismal numbers might suggest that there simply aren’t enough women entrepreneurs in the ecosystem, but don’t be fooled—there are plenty of women starting and growing businesses across Australia.
So why was there only one woman among LinkedIn’s Top 20 Startups in Australia this year?
Sad numbers make for good headlines
It’s undeniable that the odds are stacked against women founders, and the investment data reflects this. Systemic challenges and social biases continue to create significant barriers to capital flowing towards female founders.
Despite these obstacles, I’ve never been more optimistic about investing in women. In fact, there’s never been a better time to be a woman founder.
There are many ways we can address these heartbreaking statistics, but let’s start with one approach – changing the narrative around the value of women-led businesses.
Know your math
One key step is recognising that women-led startups remain a largely overlooked opportunity for outsized returns. The next time someone claims that women in startups aren’t a good bet, show them the numbers:
Expect outperformance: A report by First Round Capital found that women-led startups perform 63% better than their male counterparts.
Diverse teams deliver: Founding teams that are ethnically diverse outperform all-white founding teams by 30%, according to the Kauffman Fellows Research Center.
Higher revenue generation: According to BCG, women-founded startups generate 10% more cumulative revenue over a five-year period.
Faster exits: Female-founded startups achieve faster exits with higher returns, as reported by Microsoft for Startups and Goldman Sachs’ Launch With GS.
Missed opportunities: Morgan Stanley estimates that investing in women and minority-owned ventures represents a trillion-dollar opportunity.
Follow the leaders
The good news is that an increasing number of investors, leaders, and allies are stepping up to create pathways for women and diverse founders. They recognise that women-led startups are an overlooked goldmine for exceptional returns on investment. Look no further than:
– F5 Collective, an APAC-focused fund investing in women building high-growth ventures.
– LaunchVic’s Alice Anderson Fund, supporting women-led startups with matched funding.
– Scale Investors Pty Ltd , empowering exceptional women entrepreneurs.
– Artesian’s Female Leaders Fund, a $100m fund focused on Series A and B investments through a gender lens.
– Trawalla Group is not only investing in women but also in women investors such as ALIAVIA Ventures, exclusively backing female-founded tech startups in Australia and the US.
– Euphemia, with women-led ventures as one of its core investment pillars.
– Giant Leap, where 60% of their portfolio companies are women-led.
– LIFTwomen Group, Australia and Asia’s first female-focused crowdfunding platform.
– Flying Fox Ventures, soon launching a female founder sidecar fund.
– Beyond The Billion, which aims to channel $1 billion into the hands of women founders globally.
– Shebacks.Me, offering a range of capital options for women and non-binary entrepreneurs, including grants, loans, and angel syndicate investments.
– Coralus (formerly SheEO), provides community funding, support, and knowledge-sharing for female and non-binary business owners.
The future of female founders
At One Roof, we are proud to be part of this growing ecosystem of supporters that is creating real opportunities for women founders to thrive. By fostering connection, education, and access to resources, we are actively contributing to closing the funding gap.
This Friday, October 25, we’re hosting ‘Women Scaling Startups‘, an event in partnership with Mayfly and Think & Grow, designed to provide direct learning opportunities for women entrepreneurs and their supporters.
The event will feature remarkable women like Kim Teo, who, in 2021, closed an A$89 million funding round for Mr Yum, the largest Series A for a female-led company in Australia.
Other inspiring founders, including Nikki Tugano from HR-tech startup SeenCulture and Sheree Andersen from gifting platform Elliephant, will also share their insights.
Alongside these founders, investors such as F5 Collective, Tractor Ventures, and Antler VC will offer invaluable guidance.
Don’t miss this chance to connect and learn from women who have successfully navigated the funding landscape. More information here: humanitix.com/women-scaling-startups
Building a more inclusive and prosperous future
Investing in women isn’t just a matter of equity, it’s a savvy, strategic move, and the time to act is now.
The lack of diversity in the startup ecosystem presents a serious issue, it channels the majority of funding to founders that align with traditional venture capitalists — typically white men from privileged backgrounds.
This limited focus stifles innovation, preventing many promising, diverse businesses from reaching their full potential. As a result, fewer products are created that serve women, BIPOC individuals, and underrepresented communities.
Now, picture a future where women have greater access to funding, where diverse teams are building billion-dollar enterprises, and where women harness economic power to drive meaningful societal change.
This future is within reach, but only if we shift the current trajectory.
We can make this change by directing more investment toward women founders. It’s not just smart business—it’s a trillion-dollar opportunity waiting to be realised.
- Frances Goh is cofounder and head of community & growth at One Roof.
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