VC sees strong future for women-led startups

Venture partner sees better future for women-led startups, but pace of change remains frustratingly slow

What you probably already know: Women founders are largely underrepresented in the funding landscape. According to Pitchbook, women-only led startups have received around 6.4% of venture capital deals in 2024, and only 2.4% of VC checks given out. Startups with both women and men as co-founders, meanwhile, have seen received 18.5% of all deals and 19.4% of all capital this year.

Why? To put it simply, the problem is that the “big money is still owned by the big people,” said Eva Ho, general partner at Los Angeles-based Fika Ventures. While lots of young and emerging VC and fund managers are interested in leveling the playing field, many key decision makers and limited partners aren’t focused on diversity, equity and inclusion, making the pace of change “glacial,” she said. “It’s like one step forward, two steps back,” Ho said. “Especially in a time where these (limited partners) are not getting liquidity, many are retreating back to the comfort zone … and not taking risks with emerging managers.”

What it means: For women founders, this landscape can present an uphill battle in getting the funding that their startup needs to thrive. “You may have to try 20% harder than a man sitting next to you,” said Ho. But there are two key parts to beating the odds: competence and confidence. Having a solid idea, team, and product-market fit – as well as the confidence to convey that you believe in your startup – can overcome bias and stereotypes, she said.

What happens now: While change is slow and there isn’t a “silver bullet” to solving this problem, young and innovative fund managers with an interest in making change will be taking seats of power in the next five to 10 years, Ho said. “There will be a whole new crop of managers that are younger and will resonate more with the next state of founders… LPs are coming to realize that it’s not going to be the 60-year-old white guy.”

— Story by Formidable contributing writer Nat Rubio-Licht