The US economy has grown steadily over the past decade and there has been a parallel increase in the number of startups and startups in the country. Most of these were founded by men. While many American women have entrepreneurial ambitions, they often find it more difficult to succeed. India even appears to belong to a group of countries where women entrepreneurs struggle with less favorable conditions, pronounced cultural biases, and a lack of business resources such as finance, capital, training and development.
If you are a man. For women, it is an uphill battle. The founders still face endemic barriers to accessing capital to start and grow their businesses.
The data is shocking. Even with recent advancements, women-only businesses have only collected 2.3 percent of the total capital invested in company-backed startups in the U.S. Not to mention that female partners are still a minority (9 percent for to be exact) and most of the money goes to mixed or male-founded startups.
Numerous reasons can be attributed to why the funding gap for women remains extremely large. One is the fact that historically private equity partnerships have been created by men and thus the trend of male-dominated funds has prevailed. But we're not here to discuss what's wrong with the VC gender gap, how women have to prove they deserve to work in a male-dominated industry, or the frustrations that come with being the only woman in the world. Instead, we look at where the founders are gaining ground.
This guide looks at gender data to analyze the status of female startups, which metropolitan areas are leading the way for female-funded startups, and tips for women to navigate an industry that largely feels like a company. brotopia.
Leading metropolitan areas for women's startups based on funding
Major metropolitan areas are, of course, home to some of the most successful startups in the world. Big cities serve as a breeding ground for creative ideas, a broad clientele and, of course, proximity to wealthy venture capitalists. So it goes without saying that these areas are beneficial for startups, regardless of the gender of their founder.
That said, the gender gap is still significant in all 50 states and their major cities. Using data from Pitchbook, we analyzed which metropolitan statistical areas offer the highest amount of invested capital and the highest number of deals in startups founded exclusively by women. Here's a look at the top 25 metropolitan areas for women founders based on current US data.
conclusion
Unleashing the full potential of women entrepreneurs can foster innovation, economic growth and job creation. This letter has described the current situation in the United States and identified causes that explain the low percentage of female entrepreneurship in the country. Overcoming these barriers is a matter of guts and passion on the part of women themselves, as well as addressing the structural factors of the external environment, over which they have limited control.