In 2024, female founders and investors in the United States raised $38.8 billion in venture capital funding, representing a 27% increase from the previous year, according to a report by PitchBook. Despite this growth in total funding, the number of transactions involving female founders declined by 13.1%. The data indicates that deal activity continues to concentrate among a smaller number of companies, limiting opportunities for emerging female-led startups.

According to a recent article by GamesBeat, while funding levels increased, female founders captured a smaller share of overall U.S. venture capital investment compared to previous years. Women-led startups were involved in 25.1% of all VC deals in 2024, down from 26.4% in 2023. In terms of deal value, female-founded companies accounted for 19.9% of the total, compared to 20.8% the previous year. These figures highlight the persistent gap between male and female founders in the venture capital landscape, with male-led companies continuing to receive the majority of funding.

VC Deal Activity for Female-Founded Companies 

Limited Funding Opportunities

The data further reveals that all-female founding teams received just 2% of overall venture capital funding in 2024. Companies with both male and female co-founders had a significantly higher likelihood of securing investment, whereas startups led solely by women faced substantial funding challenges. This trend demonstrates that while mixed-gender teams can access capital more readily, female-only startups continue to struggle to attract investor backing.

The disparity is even more pronounced in the gaming industry, where female founders are significantly underrepresented. In 2024, women-led game startups accounted for only 0.11% of total game-related venture capital deal value, down from 0.18% in 2023. Although female founders in gaming raised an estimated $215.7 million in 2024, an increase from $163.2 million in 2023, their overall share of deals in the sector declined from 0.56% to 0.26%. These figures illustrate the significant barriers women face in securing funding in the male-dominated gaming sector.

Annual USA VC Deal Activity in Gaming (2019-2025)

Shifts in DEI Policies

The report also highlights the broader sociopolitical climate and its potential impact on female founders in the venture capital ecosystem. Changing policies and legal challenges surrounding diversity, equity, and inclusion (DEI) initiatives, including actions taken by the federal government, may affect funding opportunities for underrepresented founders. While the long-term effects of these shifts remain uncertain, there is concern that they could further narrow entry points for women and minority entrepreneurs seeking venture capital investment.

Despite these challenges, female-founded startups continued to achieve notable successes in 2024. The number of newly minted female-led unicorns—companies valued at $1 billion or more—rose, with 13 such startups emerging during the year. Additionally, female founders accounted for a record 24.3% of total U.S. venture capital exit deals, signaling growing confidence among investors in women-led businesses.

Annual USA VC Deal Activity in Gaming (2019-2025)

Growth in Late-Stage Funding

The overall funding environment for female founders in 2024 reflected larger trends within the venture capital market. Later-stage companies, particularly in software and healthcare, attracted substantial investment. While female-founded startups experienced a slower decline in deal count compared to previous years, the overall trend still pointed to a reduction in deal activity. The decrease in deal count was less severe than in 2023, suggesting some renewed investor confidence.

However, a persistent valuation gap remains between female-founded companies and their male-led counterparts, particularly at the late and venture-growth stages. While valuations for female-founded companies increased in 2024, they continue to lag behind those of male-founded businesses, reflecting ongoing structural challenges in the funding landscape.

VC Deal Activity for Female-Founded Companies

The Path Forward for Female Founders

The report suggests that while progress has been made, gender disparities in venture capital investment remain a significant issue. Female founders continue to secure less funding than male founders, especially in industries like gaming, where representation is particularly low. However, the data also indicates that women-led businesses are attracting larger investments, particularly in later-stage funding rounds, and that investor confidence in female founders is gradually improving.

Lisa Wu, a partner at Norwest Venture Partners, emphasized the role investors can play in reversing current funding trends. She noted that female investors are more likely to invest in female-led companies and encouraged both investors and entrepreneurs to focus on building strong business fundamentals. She also highlighted the market potential of female-led startups, particularly those catering to female consumers, who collectively control a significant portion of global spending.

While female founders face persistent challenges in securing venture capital, their growing presence in the startup ecosystem suggests that long-term progress is possible. The key question moving forward is how the industry can create a more equitable funding environment that provides women-led startups with the resources they need to succeed.

Source: GamesBeat