Women are still struggling to be believed and trusted by investors

Why is it so difficult for women entrepreneurs to get funding?

As a leader in Australia’s startup ecosystem and someone who has seen the transformative power of innovation up close, I grapple with this question every day.

The statistics are stark: in 2022, just 0.7% of private startup funding in Australia went to female-led companies. Globally, the figure is barely better, sitting at 2% or less.

The narrative I hear all too often from women founders is painfully familiar: they’re not trusted in the same way their male counterparts are. Investors ask women about risks and men about opportunities. Imagine pitching the same brilliant idea as a male entrepreneur, only to face scepticism at every turn while he’s greeted with excitement.

As Ilea Buffier, managing director of Evalu8 Sustainability and one of the most accomplished entrepreneurs I know, put it: “Females are being asked more questions about the risks, and males are asked more questions about the opportunities.”

This bias isn’t limited to pitches—it’s systemic. Research shows that 75% of female founders believe their gender has directly impacted their ability to raise capital. Meanwhile, only 9% of men feel the same.

Funding women isn’t charity—it’s smart business

The bias against women is even more nonsensical when we consider that women-led businesses consistently outperform their peers. Studies show that for every dollar invested, women-founded startups generate significantly higher returns—78 cents compared to 31 cents for men-led startups.

Yet, we’re still debating whether funding women is worth the effort.

If we had as many female entrepreneurs as male ones, the Australian economy could grow by up to $135 billion, according to Enterprising ME’s Future Female Entrepreneurship and Business Leadership Decadal Plan.

Building a better ecosystem

At the Canberra Innovation Network (CBRIN), we work hard to support female founders and entrepreneurs to close this funding gap. We’ve implemented practical measures to level the playing field, including gender-balanced pitch events, where every panel and pitch event we host has a minimum of 50% women.

We also host dedicated programs such as our Female Founders Program, which provides women with the skills, resources, and community they need to succeed.

These initiatives are working. Since committing to ensure 40% of our participants are women in 2022, we’ve consistently exceeded our goal. And the impact is visible. Just ask Ilea, who credits her time in CBRIN’s Griffin Accelerator Program with amplifying her ambitions and connecting her with mentors who’ve guided her path.

But it’s not enough to celebrate women—we need structural change.

The Australian government’s recent decision to scrap the Boosting Female Founders grant program because it ‘couldn’t see the impact’ was a step backward. Ironically, one of the program’s recipients, Kinetic Performance Technology (GymAware) was awarded the 2023 ACT Exporter of the Year for their work as a global leader in velocity-based training solutions. What more ‘impact’ do they need to see?

We must hold investors accountable for their biases. Implementing quotas and targets, as we’ve done to increase women’s representation on ASX boards, can work. Representation matters, not just for equity but for better decision-making.

And investors, let me ask you this: does everyone really love a cowboy? The reckless ‘move fast and break things’ culture has its limits. Women’s leadership styles—focused on calculated risk-taking, collaboration, and long-term vision—are exactly what the world needs right now.

If we want a future where innovation thrives, we need to fund and support women entrepreneurs. Not because it’s the right thing to do, but because it’s the smart thing to do.