Cautious financiers are reverting to form
A lot for development. New information out today from PitchBook shows that the number of rounds raised by female-founded and co-founded companies fell year-over-year, with dollars invested in those rounds collapsing to 2017-era levels.
It’s a frustrating quarter that follows a couple of years in which female founders saw an increase in the amount of capital they were able to raise. In 2016, PitchBook data reveals quarterly results for female founders totaling around 100 to 125 rounds, and in between $300 and $400 million in value. By 2019, those figures rose to 150 to 200 rounds per quarter, worth in between $700 million and $950 million.
The depressing results come not throughout a time of greatly lower aggregate venture capital outcomes, especially. Current data worrying Q3 2020 put together by PwC suggests that the quarter was fairly abundant. Total deal volume in the United States is down a little compared to year-ago periods, but female creators fared worse.
Simply put, a fear that widely known seed financier Charles Hudson talked about with TechCrunch throughout an Extra Crunch Live session back in April has come true. Let’s speak about it.
A variety recession?
Cards on the table, I think it’s much better when equity capital is more diversely distributed. Why? Because when there’s more basic access to funds, we’ll see a more varied set of items constructed to assault a more varied set of problems and issues. Even more, equity capital can be a path to monetary success for workers and creators, so investing it in all sorts of folks rather of one particular demographic set can spread out the wealth around more equitably.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.