ANALYZING INVESTMENT TRENDS AND CHALLENGES FOR WOMEN-OWNED STARTUPS

Abstract

The entrepreneurial ecosystem has witnessed remarkable growth globally, with startups driving innovation, economic development, and employment generation. However, women entrepreneurs continue to face systemic barriers that hinder their access to funding and scalability. This research investigates the persistent gender investment gap, where women-led startups receive disproportionately less funding despite delivering 151.6% higher revenue per dollar invested compared to male-led ventures (BCG, 2018). Using primary survey data from diverse respondents, secondary reports (BCG, PitchBook), and case studies (Nykaa, Mamaearth, Zivame), this study identifies structural biases in investment decisions, sector-specific challenges, and cultural stereotypes that perpetuate these disparities. Key findings include:  65% of respondents faced challenges in securing funding.  75% believe gender influences investment decisions, highlighting investor biases.  Women-led startups dominate sectors like technology (35%) but struggle in healthcare (15%) due to investor unfamiliarity with female-centric solutions. The research underscores the untapped potential of women entrepreneurs in driving economic growth and social impact. Closing the gender investment gap could add $5 trillion to global GDP by 2030 (McKinsey, 2024). Recommendations for stakeholders include: 1. Investors: Implement bias mitigation training and allocate 25% of funds to women- led startups. 2. Governments: Reserve 30% of startup funds for women entrepreneurs and provide tax incentives for gender-diverse portfolios. 3. Accelerators: Offer tailored mentorship programs and connect women founders with supportive investors. This study concludes that bridging the gender investment gap is not just a social equity issue but an economic imperative that requires collaborative action from all stakeholders— investors, governments, accelerators, and founders—to create a more inclusive entrepreneurial ecosystem.