The startup space represents opportunities for dynamic businesses to come to the fore with practical, profitable solutions to global problems. When it comes to innovative concepts, the presence of startups that are either female-founded or female co-founded is both increasing and drawing the attention of venture capitalists. This has been most significant on the measurable scale of startup ‘unicorns’ with an unprecedented number of female-led startups receiving a valuation of $1 billion in 2019-21.
In the current economic climate, this has further significance for how female-led startups contribute to a healthy economy. Katica Roy writes for Fast Company:
‘Female-led startups in particular benefit the economy because they have greater levels of capital efficiency— they generate 78 cents for every dollar invested in their companies compared to male-founded startups, which generate 31 cents for every dollar invested—and provide 63% better investment returns than all-male teams.’
When we consider the long-term importance of startups, a vital aspect of this is how they contribute to job creation, tech development, productivity boosts, and new market creation. Therefore, further data that shows the holistic impact of female-led businesses on internal and external levels bodes well overall for the market and society. In a recent global survey, The Economist Intelligence Unit for RBC Wealth Management found that women respondents in contrast with male respondents said, ‘It’s important to them to protect the livelihood of their employees and their families (74% vs. 67%) and that their business has a positive charitable impact on the communities in which it operates (72% vs. 65%).’
This data, in conjunction with the fact that female-led/co-founded startups create more revenue, shows that their industry-flipping contributions create dynamic socio-economic benefits. It’s further positive news then that the untapped value of women-founded or co-founded businesses sees endorsement from venture capitalists, including Jennifer Neundorfer. She says, “We’re going to invest in an underlooked asset class that is overperforming.”
Learn more about just some of the many, ‘Female Start-Ups Changing the World in 2020’ with this infographic. There is fascinating work being achieved across a range of industries and the progress in creative, philanthropic, and tech areas. Read on to learn more regardless of whether you’re a student, business owner, investor, or someone interested in the future of startups in our world.
My name is Philip Boschman, and I am the marketing manager at Trainwest. Trainwest is a leading provider of high-quality training courses in Perth, Australia.