IWD 2024: Bridging the gender gap for women tech founders

Women Tech Founders Face Unfair Hurdles in Securing Funding

In 2022, I listened to a pitch by a man who talked about what ChatGPT could do to an audience of 30 or more investors. As he explained its ability to write, design, and reimagine, the audience was frothing at the mouth. The pitcher’s aim was to raise $20 million to build solutions that complement ChatGPT and use GPT-3, which was the most updated version at that time. Days later, I asked one of the organizers, “How much did they raise?” The answer: “We fell short. We raised US$12 million, but we still have some more follow-up to do.”

My immediate reaction was being “pissed off.” Here, I had a startup, essentially in the terra incognita of innovation, revenue-positive, with clients and a channel for sales secured, and I struggled to raise $1 million.

The Challenges for Women Founders in a Male-Dominated Landscape

I began speaking to “Female Funds,” and I quickly realized that these funds often gravitate toward retail founders and companies they can easily understand. They could wrap their heads around health-related startups, but when you moved outside these categories, they were stumped. On more than one occasion, I was told their fund could invest if I had more partners in the business. That experience deflated my appetite for raising capital, and I stopped.

You see, I had been in marketing for 30 years at that point, of which over 20 years involved owning my agency and 18 years of developing technology in one form or another. I had built multiple million-dollar businesses, and my startup disrupted an industry still using a manual approach to strategy. Yet, the uphill battle to fund this innovation, staffed with PhD AI specialists, Python developers, and data scientists earning more than $100,000 each, was exhausting.

Unconscious Bias Against Women Tech Founders

This disturbing trend echoes the halls of venture capital (VC) firms and boardrooms, where unconscious bias against women tech founders still lingers. While many women realize that “Female Funds for Technology Innovators” exist, these funds often fail to look hard enough for female-only founders or operate under the mindset that there must be more than one founder.

Further disillusionment comes when observing how many female-led tech startups stem from “husband and wife” or “brother and sister” teams. While this may not always be the case, it sometimes feels as though investment opportunities are more accessible if the woman is “pushed out in front.” Though anecdotal, this perception persists and fuels the frustration among women founders.

Building a Fairer Future for Women Tech Founders

Women founders are not struggling to secure meetings with potential investors; their battle lies in being genuinely heard and valued for their innovations and leadership capabilities. Male counterparts often raise astronomical sums of VC funding based on the merit of an “idea,” without stringent metrics or projections, further highlighting the uneven playing field.

Despite the increasing visibility of women in tech, thanks in part to media efforts, the reality remains that without male endorsement, women founders often struggle to gain credibility and respect. This bias stifles innovation and diversity in the tech industry.

To bridge this gap, women in influential positions—whether in VC firms, tech companies, or government bodies—must actively support and advocate for women tech founders. Mentorship programs, inclusive funding initiatives, and policy changes aimed at leveling the playing field are critical. Transitioning to a culture that values diverse perspectives and experiences will help foster innovation and dismantle the biases that hinder women in tech.

Happy Women’s Day

As we celebrate International Women’s Day, both women and men need to hold themselves and their peers accountable for fostering an inclusive and equitable tech industry. The contributions of women tech founders must not only be recognized but celebrated to ensure a thriving, innovative future for all.