According to the latest data collected by PitchBook, venture capital investment in all-female founding teams reached a milestone of $3.3 billion in 2019. This represents 2.8% of the total capital invested across the entire U.S. startup ecosystem this year. While this number may seem insignificant, it marks a significant increase from last year’s total.
Progress Towards Parity
In 2018, venture capitalists struck 580 deals worth $3 billion for all-female teams, accounting for only 2.2% of all U.S. deal activity. So far in 2019, female-founded and mixed-gender teams have raised a total of $10.6 billion, with the majority coming from just a few notable unicorns.
Notable Unicorns Founded by Women
Glossier and Rent the Runway are two examples of companies led by women that have gained support from Silicon Valley’s elite. Glossier landed a $100 million Series D led by Sequoia Capital, valuing Emily Weiss’ business at $1.2 billion. News of Rent the Runway’s $125 million round led by Franklin Templeton Investments and Bain Capital Ventures came just a couple of days later, valuing the clothing rental company at $1 billion.
Still a Long Way to Go
Despite this progress, all-male teams still raised more than 85% of all U.S. venture capital dollars in 2019. The decision-makers at venture capital firms were also predominantly male, with over 90% of the seats held by men. It is clear that the venture capital industry has a long way to go before achieving parity.
Diversity-Focused VC Funds
One notable exception is Harlem Capital, a diversity-focused VC fund that debuted with $40 million in funding. The fund’s managing partner, Jarrid Tingle, stated that they are committed to investing in underrepresented founders and creating opportunities for them to succeed.
Other Initiatives Supporting Women in Tech
All Raise is another organization working towards increasing representation across the entire tech ecosystem. They have hired their first CEO, Pam Kostka, and launched several initiatives, including VC Cohorts and new chapters in Los Angeles and Boston.
Conclusion
While there has been progress towards achieving parity, the venture capital industry still has a long way to go. The lack of representation among decision-makers at venture capital firms is a significant barrier to success for underrepresented founders. Organizations like Harlem Capital and All Raise are working towards creating opportunities for these founders, but much more needs to be done.
Related Stories
- Diversity-Focused VC Fund Harlem Capital Debuts with $40M
- All Raise Hires First CEO, Expands to New Chapters and Programs
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