Gender Disparity: Less than 7% of Web3 VC Funding Goes to Female-Led Startups
The field of Web3 venture capital (VC) investments is facing a substantial gender disparity, with female-led startups receiving less than 7% of the total funding. According to a recent report by Bitget Research, out of the $27.85 billion invested in Web3 startups over the past two years, only $1.77 billion went to female-led initiatives. This figure is several times lower than the overall funding received by women in startups across different industries.
Bitget Report: Female-Led Web3 Startups Receive $1.77B in VC Funding
Bitget Research’s report sheds light on the funding landscape for female-led Web3 startups. The findings reveal that out of the $27.85 billion in Web3 VC funding from Q1 2022 to Q3 2023, female-led startups received $1.77 billion, while male-led startups received $26.08 billion. It is worth noting that female-led Web3 startups accounted for less than 9% of all startups in the sector. The report defines a “female-led blockchain startup” as a blockchain startup where at least 50% of the executives are women.
Decline in Blockchain VC Funding Raises Concerns over Inclusiveness
While VC funding for blockchain firms has experienced a general decline since 2022, the gender disparity in funding allocation raises concerns about inclusiveness in the industry. The total funding for blockchain startups decreased from around $6.4 billion in Q1 2022 to a low of $2 billion in Q2 2023 before slightly recovering in the following quarter. However, the report highlights that 8.2% of funding for female-led blockchain startups as of Q3 2023 is 2.5 times lower than the overall figure for startups in various fields (20.3%). This indicates the need for comprehensive measures to increase the inclusiveness and accessibility of the blockchain sphere for women.
Comprehensive Measures Needed to Increase Women’s Participation in Blockchain
The gender disparity in VC funding for Web3 startups underscores the need for comprehensive efforts to increase the participation of women in the blockchain industry. Bridget Greenwood, founder of The Bigger Pie, a networking organization that supports women in blockchain globally, highlighted even lower VC funding allocations to women in the United Kingdom. She revealed that only 3% of all VC funding in the country goes to female founders, with 8% going to mixed-gender teams, leaving the majority for all-male teams. These statistics emphasize the urgency to address the gender imbalance and create a more inclusive ecosystem for women in the blockchain space.
VC Bias: Research Finds Male Investors Look Less Favorably on Feminine-Stereotyped Behaviors
The gender disparity in VC funding can partially be attributed to bias exhibited by male investors. Research conducted by a team of Canadian and American researchers revealed that venture capitalists, who are predominantly male, tend to exhibit bias against displays of feminine-stereotyped behaviors by entrepreneurs. These biases perpetuate gender inequalities and hinder the prospects of female-led startups in securing funding.
Efforts to address this bias and increase opportunities for female entrepreneurs should focus on creating an environment that values diverse perspectives and achievements, while educating investors about the potential of women-led startups. By promoting inclusivity and breaking down gender biases, the blockchain industry will be better positioned to thrive and reach its full potential.
Analyst comment
Positive news: Efforts are needed to address the gender disparity in VC funding for female-led Web3 startups. The report sheds light on the issue and emphasizes the need for comprehensive measures to increase women’s participation in the blockchain industry. By promoting inclusivity and breaking down gender biases, the industry can thrive and reach its full potential.
