Despite numerous initiatives aimed at increasing funding for women-led startups, female founders in Africa received just 1% of total VC funding in 2024, the lowest in five years. At the Accelerating Investment into Women-Led Businesses roundtable—organized by Spurt! and the UK-Nigeria Tech Hub—investors and entrepreneurs discussed why women continue to be sidelined in venture capital.
One major issue? Bias is deeply embedded in the system. Even investors who claim to be gender-conscious often uphold stereotypes, judging women’s professionalism based on appearance or applying stricter scrutiny to their businesses. Structural discrimination in due diligence further widens the gap, as men typically have greater access to early funding, mentorship, and networks that make their pitches appear more polished.
To level the playing field, experts suggest retraining analysts to look beyond aesthetics, removing demographic biases from screening, and introducing affirmative action policies—like tax incentives for firms that prioritize gender balance in their investments.
However, women also have a role to play. Many investors noted that female founders often fail to follow up after receiving feedback, while men do. Confidence gaps and limited advisory support contribute to this, reinforcing funding inequalities. To secure investment, women must increase their visibility, showcase growth, and build strong networks—even when the odds are stacked against them.
Read the full news here: TechCabal