Navigating the entrepreneurial landscape is a challenging feat for women. The hurdles they face are well-documented, which range from equitable access to funding and other resources, to widespread discrimination from venture capitalists and investors. Crunchbase, a data provider, reveals that in 2020, a mere 2.3% of global venture capital was allocated to female entrepreneurs. But the issues are not limited to the funding stage. Post-entry, a systemic performance gap persists. As an example, Crunchbase also reports that of the 120 new entrants to its “Unicorn Board” that year, only 10 were founded by women.
This inequity is far from new or surprising. Research has consistently highlighted the patterns of unfair distribution of venture capital. However, even after succeeding in raising venture capital, we still observe a persistent performance disparity between startups led by men and women. Why? Are there any other hidden challenges that female entrepreneurs face, hampering their success?
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