Women's Slice of Web3 VC Funding Pie Uneven, Calls for Increased Inclusivity in Blockchain Sector
Summary:
Over the last two years, women-founded or led start-ups received only 6.43% of the $27.85 billion allocated for Web3 venture capital investments. Despite the general decline in VC funding for blockchain companies, the study highlights that funding for female-led blockchain start-ups was 2.5 times less than startups in various fields. This indicates a need for strategic measures to increase women's inclusiveness and accessibility in the blockchain sector.
In the past two years, female-founded or directed startups have attracted a mere 6.43% slice of the $27.85 billion Web3 capital investments bucket, as reported by Bitget Research on Jan. 11. This calculates to a funding sum of around $1.77 billion out of the total Web3 VC awarded from the first quarter of 2022 until the third quarter of 2023, leaving a whopping $26.08 billion for the male counterparts. Furthermore, female-led Web3 startups accounted for slightly below 9% of all startups in the field. The analytical study defined "female-led blockchain startup" as a blockchain venture with half or more of its executive team being women. Regardless of gender, VC funding for blockchain corporations has seen a general downturn since 2022, falling from nearly $6.4 billion in the first quarter of 2022 to a nadir of $2 billion in the second quarter of 2023, with a minor surge in the subsequent quarter. Nevertheless, amid the slight recovery, the study pointed out that “8.2% of funding dedicated to female-led blockchain ventures as of the third quarter of 2023 is 2.5 times less than the funding invested into diverse sectors (20.3%),” indicating the need for strategic measures to enhance the blockchain field's diversity and ease of access for women. Based on the observation from Bridget Greenwood, founder of The Bigger Pie, a UK networking organization supporting women in global blockchain, the overall VC funding percentage for women in the UK is sadly even lower. She reveals, "The shocking statistic that I stumbled upon is that, of all the VC funding in the UK, a slim 3% goes to female founders, while 8% is awarded to mixed gender teams, and the remainder goes to all-male teams." A study launched by a team of scholarly researchers from Canada and the US discovered that venture capitalists, predominantly males, exhibit bias against entrepreneurs who display feminine-coded behaviors.
Published At
1/11/2024 1:00:00 PM
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