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Female Founders Forge Ahead in US Venture Capital, Igniting Innovation and Inclusion

In 2023, female founders secured slightly more cumulative venture capital (VC) deal value compared to the previous year, despite economic uncertainties, marking a testament to their resilience and innovation.

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In the venture capital space, female founders in the United States encountered both challenges and triumphs in 2023. Despite facing mounting pressures from investors and economic uncertainties, they demonstrated remarkable resilience, securing notable funding throughout the year.

However, a closer examination of the data reveals a nuanced narrative, shedding light on the evolving landscape of entrepreneurship and investment.

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According to recent analysis, female founders in the US fared relatively well in 2023, managing to secure slightly more cumulative venture capital (VC) deal value compared to the previous year. This achievement is particularly noteworthy given the prevailing economic uncertainties and investor apprehensions.

However, the driving force behind the slightly higher total value in 2023 was OpenAI's monumental $10 billion raise in Q1. It's essential to note that OpenAI's female founder had departed the company prior to this significant funding round. Consequently, when excluding OpenAI from the data, there emerges a more nuanced picture: a moderate decline in cumulative deal value for female founders in 2023.

Kate Ryder Founder and CEO, Maven Clinic

Nevertheless, female founders still managed to secure more capital in 2023 compared to 2020, marking the third-highest annual level on record. This resilience underscores their ability to navigate challenges and seize opportunities in a rapidly evolving landscape. Momentum notably picked up in the second half of the year, driven by sizable funding rounds and emerging technological applications.

"The decline of deal count for female founders by more than 25% in 2023 reflects a trend where investors became increasingly discerning, prioritizing quality over quantity in their investments."

Despite the overall increase in cumulative deal value, the deal count for female founders declined by more than 25% in 2023. This decline suggests that while investors continued to deploy capital, they became increasingly discerning, emphasizing quality over quantity. Similar trends were observed for both all-male and all-female-founded companies, with both categories closing less total capital in 2023 compared to 2020.

However, amidst these fluctuations, female-founded companies generated a record proportion of total VC deal value in 2023, accounting for 22.8% excluding the OpenAI deal. This marked uptick underscores the growing recognition of the potential and innovation brought forth by female entrepreneurs. Yet, despite this progress, a significant gap persists between the amount of venture capital secured by female founding teams compared to their all-male counterparts.

Amidst these trends, several standout deals exemplify the resilience and innovation of female founders:

Maven Clinic

Maven Clinic, a virtual healthcare provider focusing on women's health, secured $110 million in Series D funding led by Dragoneer Investment Group. This substantial investment underscores the growing demand for telehealth services addressing women's specific healthcare needs. Read more.


Bulletin, a marketplace for female-led brands, raised $20 million in Series A funding led by Index Ventures. The funding round emphasizes the demand for platforms supporting women-owned businesses and promoting diversity in retail. Read more.


Ellevest, a digital investment platform designed for women, secured $75 million in Series C funding in a round led by Rethink Impact. This significant investment highlights the increasing recognition of the importance of financial empowerment and investment tools tailored to women's needs. Read more.

These investments, along with others in the sector, highlight the growing recognition of female entrepreneurs and their potential to drive innovation and economic growth.

Looking ahead to 2024, there is a cautiously optimistic economic outlook combined with renewed excitement among dealmakers, fueled by emerging tech applications and evolving market dynamics. However, it's essential to address the underlying challenges that continue to hinder gender parity in entrepreneurship and investment. Bridging the funding gap and fostering an inclusive ecosystem are critical steps towards unlocking the full potential of female founders and driving sustained innovation and growth.

"Female-founded companies accounted for a record proportion of total VC deal value in 2023, reaching 22.8% excluding the OpenAI deal, signaling a growing recognition of their potential and innovation in the entrepreneurial landscape."

In conclusion, the journey of female founders in the US in 2023 reflects a story of resilience, adaptation, and incremental progress. Despite facing obstacles and uncertainties, they have demonstrated their ability to thrive and contribute meaningfully to the entrepreneurial landscape. As we navigate the evolving dynamics of venture capital and entrepreneurship, fostering diversity and inclusivity remains paramount for driving innovation and sustainable growth in the years to come.

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