Women entrepreneurs are still struggling to secure funding
In 2022, only 0.7% of private startup funding in Australia went to women-led businesses. Globally, the figure hovers around 2%.
In 2019, when I founded Evalue8 Sustainability, I was convinced of the market need for carbon accounting software. I’d spent 14 years in the industry, had decades of experience as a business owner, and had even been recognised as Telstra Business Woman of the Year back in 2004. Yet, despite my credentials and expertise, raising capital was a constant uphill battle.
At one point, I was repeatedly asked how I knew there was a market for what I was building. Fast forward a few months, and a US-based competitor started doing the same thing — and raised $150 million, marking the largest cleantech capital raise to date.
These experiences aren’t unique to me. They’re emblematic of a much larger problem.
In 2022, only 0.7% of private startup funding in Australia went to women-led businesses. Globally, the figure hovers around 2%. These statistics reveal a systemic bias that women founders encounter daily. These figures aren’t tracking in the right direction either.
A staggering 75% of women founders believe their gender negatively affects their ability to raise capital, compared to only 9% of male founders. One key reason is that women aren’t being trusted or believed in the same way as men. Time and time again, I’ve seen women entrepreneurs face a barrage of questions about risks, while male founders are asked about opportunities. By contrast, my male counterparts are encouraged to dream big, with optimism and excitement often meeting their pitches.
What makes this bias even more baffling is the evidence that women-led businesses deliver better financial returns. According to data from Boston Consulting Group, for every dollar invested, startups founded by women generate 78 cents compared to 31 cents for those led by men. Plus, according to an analysis10 years of data from 300 companies, startups with a woman founder or co-founder perform 63% better for their VC investors.
What’s being left on the table?
The carbon accounting software market, the sector my company operates in, is projected to grow from $24 billion in 2023 to $1.2 trillion in the next five years. Despite this, I — and so many other women like me — struggle to secure the capital needed to scale. It’s hard not to wonder: how many brilliant innovations are being left on the table because of outdated biases?
Beyond individual performance, the economic impact of closing the gender gap in entrepreneurship is enormous. If female entrepreneurship matched male levels in Australia, it could add $135 billion to the economy, according to Enterprising ME’s Future Female Entrepreneurship and Business Leadership Decadal Plan. So why aren’t investors taking advantage of this huge opportunity?
Programs like the Canberra Innovation Network’s (CBRIN) Female Founders Program are critical. This initiative provides women entrepreneurs with access to the resources, mentorship, and networks they need to succeed in traditionally male-dominated fields like STEM and tech.
Being part of CBRIN has been transformative for me. Their Griffin Accelerator connected me with incredible mentors and amplified my ambitions. For example, earlier this month, I was honoured to receive the Innovation Business Woman of the Year and Sustainability Business Woman of the Year awards at the Canberra Women in Business Awards.
But while initiatives like these have an impact, they must be paired with broader structural reforms. The Australian government’s recent decision to scrap the Boosting Female Founders grant program because it ‘couldn’t see the impact’ was an example of the huge disconnect between policymaker expectations and the reality of supporting long-term change.
Investors, too, need to take responsibility. Quotas and targets, such as those used to improve female representation on ASX boards, could encourage fairer investment practices.
Women founders are ‘a good bet’
To every female founder reading this: find a startup community like CBRIN. Surround yourself with people who can guide and support you. Lean into programs that prioritise customer needs and scalability.
For innovation to truly thrive, we need to address the funding gender gap head-on. That means reinstating and expanding government funding for women entrepreneurs and encouraging investors to confront and change their biases.
It’s frustrating to think that, at the current rate of change, achieving gender parity will take another 131 years, as the World Economic Forum predicts. But by making deliberate choices — backing women-led ventures, reinstating government funding programs, and fostering inclusive ecosystems — we can speed that timeline up.
It’s time for the investment community to broaden its definition of what makes a good bet. Women aren’t asking for handouts — we’re proving, time and again, that we can deliver. If we’re serious about fostering a thriving innovation ecosystem, it’s time to put our money where it counts.
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