Why should VCs be more interested in female-led startups

UK Govt: Women-led startups receive only 2% of total VC investment in the UK, yet generate twice the revenue per £ invested!

Why should VCs be more interested in female-led startups:

✦ 35% higher ROI
Women-led startups deliver 35% higher ROI than male-led ones, despite receiving far less funding. In the UK, they generate nearly double the revenue per £ invested. Reports from the US (BCG, 2018) and EU Zone showed quasi-identical results.

✦ Access to Untapped Markets
Female founders often tackle underserved markets, especially those influencing the majority of global purchasing decisions - women.

✦ Economic Potential
Closing the gender entrepreneurship gap could add $5–6 trillion to the global economy and lift GDP by 20%+.

✦ Positive Social Impact
Female founders reinvest heavily in communities, driving improvements in education, infrastructure, and social equity—benefiting both investors and society.

— THE STRUCTURAL PROBLEM —

✦ Network & Mentorship Gaps
With only 11% of VC partners being women, female founders have less access to the elite networks that drive deal flow and mentorship. In the US, 92% of VC partners are men. Many struggle to assess female-focused markets like childcare or beauty, undervaluing high-potential ideas. Most VCs share similar educational and professional backgrounds. Without diversity at the table, deal flow mirrors the status quo.

✦ Biased Questioning during Pitches
Research shows male founders are asked about growth; women are asked about risk and their technical skills. Investors often assume the male cofounder knows the tech and direct technical questions to him. Women are more likely to accept negative investor feedback without pushback, while men more often challenge it, shaping perceptions of confidence and leadership (BCG, 2018).

✦ Pitch Style Differences
Men tend to overpitch and oversell. Women are more conservative, often requesting smaller amounts—even when the opportunity is just as big.

✦ Role Model Deficit
With so few women in VC leadership, aspiring female investors and founders lack visible examples to follow.


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Image: THENA Capital fund managers Dr Pamela Walker Geddes, Esther Reynal de St Michel Richardot and Tatum Getty.

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