Why Women-Owned Startups Are a Better Bet
According to Boston Consulting Group research, when women business owners pitch their ideas to investors for early-stage capital, they receive significantly less funding — a disparity that averages more than $1 million— than men. Yet businesses founded by women ultimately deliver higher revenue—more than twice as much per dollar invested—than those founded by men, making women-owned companies better investments for financial backers.
Drawing on data from MassChallenge, a US-based global network of accelerators that offers startup businesses access to mentors, industry experts, and other resources, the study title 'Why Women-Owned Startups Are a Better Bet' found the following:
- Investments in companies founded or cofounded by women averaged $935,000, which is less than half the average $2.1 million invested in companies founded by male entrepreneurs.
- Despite this disparity, startups founded and cofounded by women actually performed better over time, generating 10% more in cumulative revenue over a five-year period: $730,000 compared with $662,000.