VC ⁢Funding Boost: Female Founders Thrive Despite Market Headwinds

Updated ⁢May 29, 2025

Despite a challenging year for venture capital, female founders experienced notable gains in 2024. According‍ to a PitchBook report, exits for female-founded companies increased in both the U.S. ⁢and Europe, even as the broader VC industry faced economic and sociopolitical headwinds.

In the U.S., female founders secured more than $38 billion in venture capital funding, a 27% increase from the previous year. European women-led companies maintained strong momentum, raising €10 billion across nearly ⁤2,000 deals for the fourth⁣ consecutive year. This increase in venture capital exits underscores the growing impact of female-led ventures.

While deal values rose,the number of deals actually decreased by 13% in the U.S. and 26% in Europe. This trend suggests a shift toward larger,‍ more strategic investments in fewer companies. Angel investor participation also saw a ⁢decline, reaching a 10-year low in the U.S. and the lowest ⁢level ⁤since 2018 in Europe.

“Representation for female decision-makers at the GP level remains an area for improvement, with little change year over year,” said Annemarie Donegan, senior research ‍analyst at PitchBook. ‍“Increasing female ⁣representation in check-writing roles could help drive investment in female-founded startups by expanding access and chance for⁤ founders ⁢who may‍ otherwise be overlooked.”

What’s next

Looking ahead, ⁤increasing female⁣ representation in ⁢venture capital decision-making roles could further boost funding opportunities for female founders, ⁣potentially leading to even greater success in the years to come. The venture capital landscape may see more initiatives aimed⁢ at supporting and investing in women-led startups.