Despite a general slowdown in venture capitalism in 2023, female-led startups have defied the odds, managing to capture a record portion of venture capital funding. According to a recent PitchBook report, women entrepreneurs snagged 27.8% of the total VC deal value last year, representing a striking increase from just 18.7% in 2022.
However, the journey hasn't been all roses, exits for female-founded companies plummeted to their lowest point since 2016, a decline by more than one-third from the preceding year. Annemarie Donegan, a research analyst for PitchBook, pointed out that "But there continues to be a wide gap between investment in female-founding teams and male-founding teams,” as she told the Phoenix Business Journal. In a challenging landscape, this trend sets a bar for the kind of resilience it takes to break through the male-dominated VC environment.
Switzerland is witnessing similar trends in its venture capital landscape, with 2023 investments in female-led startups reaching a historic high. As reported by Startupticker.ch, women at the helm secured funding for 37 businesses, accumulating a total of CHF 175 million, despite representing less than 10% of all recipients. While the overall number of investment rounds took a dip in the Swiss startup ecosystem, female-led companies experienced a slight increase in rounds from the previous year, showing a tenacious drive amidst economic ebb and flow.
On the VC firm front, the female presence is crawling up, accounting for 17.4% of decision-makers at firms with assets of at least $50 million, a modest bump from 16.1% the year before. Deloitte’s Heather Gates emphasized the need for change in the industry, stating in the PitchBook "All In" report, "Changing the VC ecosystem will take time." She notes that despite the progress, the deeper layers of representation — across venture firm boards, finance committees, and owner stakes — still paint a bleak picture for women.
The Swiss efforts reflect a concerted drive to balance the scales. The emergence of initiatives like Collective, supported by more than 45 organizations, shows an ecosystem rallying to empower female founders. While investments in female-led startups have yet to reach a level playing field with their male counterparts, the surge in support and record-breaking investment milestones mark a pivotal shift in the landscape, offering a glimmer of hope and opportunity for women at the helm of rising startups.
