In 2024, founders and investors for women collected 38.8 billion US dollars of funds in the USA in the USA, according to PitchBook, 27% compared to the previous year.
The report was created by Nizar Tarhuni by PitchBook Data, Paul Condra and Garrett Black. The number of transactions with founders of women is 13.1%, since the deal activity continues to focus on a smaller population of companies.
Overall, the founders took home a lower proportion of the total funding of the US VC for the year with regard to the number of deals and the value. In 2024, female founders were involved in 25.1% of all deals compared to 26.4% in 2023. The founders of female founders were 19.9%
The bad news? Well, the offers were slipped in 2024 when the financing broke back. And one of the following charts shows that only female teams made 2% of the entire VC in 2024. When a man is involved as a founder in addition to a woman, the company has a pretty good chance of getting money. If it only has female founders, it has a terrible chance to get money.
Play dates are much worse
In the game industry, however, it is far worse if it is the female representation for financed startups. In the landscape of play-ups dominated by men, women were only 0.11 percent of the VC deal value of games in 2024, worse compared to 0.18% in 2023.
Founders in game companies received an estimated 215.7 million US dollar at Deals in 2024, compared to $ 163.2 million in the deal value in 2023. The founders of female founders were 0.26% of the total contract number for game starts in 2024 compared to 0.56% in 2023.
According to PitchBook, socio -political tides change with renewed measures against diversity, justice and inclusion (DEI) and ESG initiatives that will affect the trajectory of the founders in the United States. The efficiency remains uncertain. The executive order of President Donald Trump, DEI initiatives and the associated ongoing legal struggles will take some time to pay and reflect in the financing figures.
Pitchbook, however, said it was noteworthy that the entry points for underrepresented founders could limit itself
In view of new challenges, at least until the legal precedent is decided. The founders will undoubtedly continue to innovate and increase new capital in the coming year, but even a demographic separation for VC investments remains on the horizon, according to Pitchbook.
On the good side, Pitchbook said that the profits, although unevenly, were achieved by female founders in 2024. Later companies and those who worked in selected software and health sub-sizes saw considerable funding dynamics. The number of newly shaped unicorns increased significantly when 13 companies founded by women crossed the coveted assessment threshold of $ 1 billion.
The founders also secured 24.3% of the total USVC exit number in a positive signal in a positive signal for investors who work with these founders.
The 2024 US all in the report is made possible by sponsorship by Wilson Sonsini, Fidelity private shares and flowering activities.
At the high level in the USA, larger checks and a slower decline in the deal count have more value for female founders. 2024 exceeded 2023 for the third highest annual capital level, which was built up by VC deal activities for purely founded companies.
As of December 31, 2024
Disposal for female companies. Founders. The annual number of coverage remained slightly higher than that of Pandemic norms and sank more slowly than in 2023, which indicates that trust in the investor communities returned. Allhens and all women founded companies recorded similar trends in 2024, although in the all-times category, a higher growth of the deal value of 33.2% recorded, and the inverse trend between the deal value and number shows the power of mega financing for a selected population of companies, while the broader basis of the companies continues to face. This trend is also VC deal activity for purely male companies
In all US business degrees, the pre/seed deal volume took an oversized hit, while the more mature venture growth level increased in the deal, and this trend was also transferred to companies founded by women.
Share of the founders of the female founders in the entire US VC deal activity in 2024 tended.
In 2024, the founders took home a lower proportion of the entire VC deal activity of the country. Their share of the deal value, which is generally volatile and driven by market effects, decreased by less than one percentage point to just under 20%. Their share of the total number of agreements has decreased to the lowest level since 2018, but remained above the 25% threshold.
In view of the number of variables involved in a company that concludes a deal, it is unlikely that the proportion of womenās founders will pursue perfectly linear progress every year, but the long -term trend lines are progressing towards parity.
By investigating the past 10 years annual deal cos, a stronger CAGRS of 5.5% for all-lemale-founded companies and 3.8% for female companies is unveiled for gradual companies compared to 1.1%. The next decade of growth depends on the development of todayās young companies, socio -economic factors and the development of investor relationships.
The median reviews of the women triggered by women in the early stages VC before the Money (Med) rose together with broader US activities in all phases in 2024, but there is a large gap between the two categories in late and risk growth.
Since these mature companies drive more activities in the VC markets, this gap has oversized impact on the general inequality of the company reviews founded by women. However, the number of venture growth deals closed by female founders has increased in the past two years, which could help to close this gap in good time.
The review variables also rose across the board in 2024. The median control size for female companies
Learn faster growth than Median VC Desalwert ($ m) because you have no additional increases
Round. While the check sizes for those who secure new rounds are increasing, female founders keep up
A lower median VC burning rate rate in capital and the number of months between the round-the wider US category in one third or almost a quarter.
This growth reflects the more selective cohort of companies that have received funds in the past two years, as well as the influence of hot technologies such as AI, which attract larger investments. The progress of companies through successive financing rounds, which is referred to as the āVC funnelā, shows the number of companies that do not count on these medium numbers than in the wider US category. Even as
The VC mood improves, the basic controls remain a priority.
In 2024, the proportion of founders in venture financing reached the lowest level in five years, with funding scored the biggest hit in the early stage. Despite this headwind, investors and founders find paths equally to adapt. Entrepreneurs continue to build innovative, high -growing companies, and investors recognize the market potential of startups guided by women. PitchBook said the main question is: How do we turn the flood and make sure that the founders receive the capital they need to thrive?
Lisa Wu Partner at Norwest Venture Partners said in a discussion in the report: āAs investors, we have the authority to reverse this financing trend by actively looking for and investing in female companies and hiring more investors. Studies show that female investors invest more often than male investors in female founders. At the same time, female founders should not be discouraged by this status and instead concentrate on the basic basics of building up a strong business. ā
She added: āThe āfounder market fitā of a founder is of crucial importance when founding a company, and female founders are particularly well equipped to create products and services for female demography that has the highest shopping. Women manage to manage an estimated 32 trillion dollar of global expenses and will control 75% of global discretion expenditure worldwide over the next five years. When female founders build products for female customers, they use their own understanding of the needs and experiences of women to create products that are specially tailored to combating pain points and wishes that could otherwise be overlooked. ā
Source link