Women-led startups are lagging behind in getting venture capital funding despite more investing in startups especially in a Southern state and city.
Women-Led Startups Face a Slow Climb Upward
The Southern state innovation hub Embarc Collective on October 19th found the proportion of venture capital funds in the Sunshine State for women-led startups has come up from 7% in 2019 to 8% in 2020. Yet, Florida is still below the national average of 11%.
In Orlando, women-founded startups last year did raise a negligible amount of venture capital when compared to other Florida cities and outside of the state.
Women-Led Startups and Disparities
Moreover, there is a disparity that exists despite metro Orlando companies which last year raised more venture capital ($416.5 million) than other Metro firms ($247.7 million), according to data from national capital associations. Another major city was the No. 1 market in Florida, with $1.08 billion in venture capital raised last year.
Venture Capital is Important to Companies
There is an importance to venture capital. Because companies that have access to it often use it to scale their workforces. Also, they develop products, then boost sales efforts and more. Then, in turn, the funds can spur growth at high-tech companies. Plus create high-wage jobs and create new, innovative solutions for the region.
Women’s Representation in Startups
Here is a closer look at the report’s finding on women’s representation in Sunshine State startups: Only 18% of new startups in Florida have a female founder. It is down from 23% in 2019. Similar to last year’s report: 42% of women said they had access to capital which was the main challenge. Yet in 2020 they also brought an issue in finding talent. It was 21% of respondents agreed. Moreover, the male-founded companies did state their most significant issue is building a business in a smaller market. There is 8% which received backing was across 92 funding rounds that represented 15% of the state’s overall funding rounds.