One step forward and a half step back is the jagged trajectory of the proportion of venture capital funding going to female founders over time. For more female founders—particularly those of color—to get funding, venture capital funds led by women and people of color need to be better funded.
According to Q1 2022 PitchBook NVCA Venture Monitor, in the first quarter of 2022:
- Mixed-gender founding startup teams received 15.6% of venture capital dollars, down 17.1% in 2021.
- All female-founded teams received 2.0% of venture capital, down from 2.2% in 2021.
Black and Latinx female founders raise less than 1% of venture capital.
Corporates like General Mills show that becoming limited partners (LPs) in diverse-led venture capital firms isn’t just the right thing to do. It is…