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Why Women-Owned Startups Are a Better Bet

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.