The United States leads in the data revealed about women-led startups, according to a latest report by Tracxn.
Women-led tech companies globally secured $29.6 billion in 2024, representing an 11% decline from $33.1 billion in 2023 and a 21% drop from $37.5 billion in 2022. However, many startups with women founders did manage to secure high ticket funding as a total of 45 funding rounds crossed the $100 million mark in 2024, a 15% increase from 39 in 2023 but a 40% drop from 75 in 2022.
The sectors with the highest number of women-led tech startups are Enterprise Applications, Life Sciences, and Fintech. Life Sciences companies raised $4.4 billion in 2024, a 6% drop from $4.7 billion in 2023 and a 13% decline from $5.04 billion in 2022. The FinTech segment, with $3.44 billion in funding in 2024, witnessed a 10% decrease from $3.8 billion in 2023 and a significant 47% decline from $6.47 billion in 2022.
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More than 7,000 startups led by women account for 7.5% of the total active startups in the country, according to Tracxn.
The U.S. came first in funding for women-led startups, followed by India. San Francisco ($9.4 billion), New York City ($1.9 billion), and London ($1.8 billion) took the lead in terms of city-wise funding in 2024.
Y Combinator, TechStars, and Antler were the most active seed-stage investors in 2024, while Lightspeed Venture Partners, General Catalyst, and Accel took the lead in early-stage investments. Notable Capital, Sapphire Ventures, and Softbank Vision Fund were the top late-stage investors.
Various governments have introduced initiatives to empower women entrepreneurs. The U.S. Small Business Administration (SBA) offers grants and resources to bridge the funding gap and provide mentorship opportunities. In India, the government has launched schemes such as the Trade Related Entrepreneurship Assistance and Development (TREAD) program, which provides financial loans through NGOs. However, the women-led tech sector still faces numerous challenges, though it continues to evolve.