Fintech is one of the best-funded sectors for female-led startups, research from Tracxn suggests. The global tech sector has over 69,000 women-founded tech companies, which have collectively raised $309 billion in funding to date. Despite a peak in 2021, when these companies secured $65 billion, funding has since experienced a steady decline.
In 2024, women-led startups accounted for only 11.7% of total funding, hurt by macroeconomic headwinds. Women-led tech companies globally secured $29.6 billion in 2024, representing an 11% decline from $33.1 billion in 2023 and a 21% drop from $37.5 billion in 2022.
Late-stage funding fell to $15.5 billion, declining 21% from $19.6 billion in 2023 and 9% from $17 billion in 2022. Early-stage funding worth $11.9 billion was observed in 2024, 10% higher than $10.8 billion in 2023 but 30% lower than $17 billion in 2022. Seed-stage funding decreased to $2.1 billion, marking a 19% drop from $2.6 billion in 2023 and a 40% decrease from $3.5 billion in 2022.
Many women-led tech startups reported big-ticket investments, with three companies reporting $1 billion-plus rounds in 2024 – Open AI, Abound, and Wiz. A total of 45 funding rounds crossed the $100 million-plus mark in 2024, a 15% increase from 39 in 2023 but a 40% drop from 75 in 2022.
Enterprise applications, life sciences, and fintech were the highest-funded segments among women-led startups in 2024. Enterprise applications secured $16.1 billion in 2024, representing an 8% and 5% decline from $17.5 billion in 2023 and $16.9 billion in 2022, respectively.
Life sciences companies raised $4.4 billion in 2024, a 6% drop from $4.7 billion in 2023 and a 13% decline from $5.04 billion in 2022. Fintech, with $3.44 billion in funding in 2024, witnessed a 10% decrease from $3.8 billion in 2023 and a significant 47% decline from $6.47 billion in 2022.
Fourteen women-led unicorns emerged in 2024, representing a 134% increase from six in 2023. Exit activity showed a small sign of improvement, with 283 acquisitions of women-led companies recorded in 2024, marking a 10% increase from 258 in 2023 but a 23% drop from 368 in 2022. Darktrace was acquired by Thoma Bravo for $5.32 billion, while Biotheus was acquired by BioNTech for $800 million. On the IPO front, 14 women-led companies went public in 2024, the same as in 2023 and slightly higher than 12 in 2022.
San Francisco ($9.4 billion), New York City ($1.9 billion), and London ($1.8 billion) took the lead in terms of city-wise funding in 2024, cementing their position as global tech hubs. Y Combinator, Techstars, and Antler were the most active seed-stage investors in 2024, while Lightspeed Venture Partners, General Catalyst, and Accel took the lead in early-stage investments. Notable Capital, Sapphire Ventures, and Softbank Vision Fund were the top late-stage investors.
To counter challenges faced by women-led startups, various governments have introduced initiatives to empower women entrepreneurs. The U.S. Small Business Administration offers grants and resources to bridge the funding gap and provide mentorship opportunities. In India, the government has launched schemes such as the Trade Related Entrepreneurship Assistance and Development (TREAD) program, which provides financial loans through NGOs. These initiatives aim to create a more equitable entrepreneurial ecosystem by offering financial support, training, and networking opportunities.
Despite ongoing challenges, the women-led tech sector continues to evolve, supported by government initiatives and investment from key players. While funding trends indicate a slowdown, increasing support and policy measures may help bridge the gap and drive future growth for women entrepreneurs globally.