2021 State of Startups

However, this represents only 14% of the overall VC funding. The Columbia Business School and London Business School reported that women-led businesses are 63% less likely to obtain venture capital funding versus businesses led by men. 38 Despite receiving less funding, female-run start- ups outperformmale-run startups by 63% in terms of creating value for investors, according to First Round Capital, 39 and the SBA concurs. 40 Gender Nationally, the SBA reported that 12% of its 7(a) and 10% of its 504 lending went to businesses owned by women (50% or more). Both num- bers are down from 2019, when women-owned companies represented 14% of the 7(a) lending and 9% of the 504 loans. The percentage of SBA lending through the 7(a) program going to male- owned businesses has increased each of the last three years. Venture capital funding for women-founded businesses reached record numbers in 2020. Companies with at least one female founder re- ceived a total of $22.1 billion in VC funding, up slightly from last year’s record of $21.8 billion. Demographics 2020 saw nationwide protests backed by the Black Lives Matter movement and the first woman elected to the role of Vice President. These societal trends had a demonstrated impact on the startup environment. 38 “Why Aren’t Startups Founded by Women Getting More Funding?” Colum- bia Business School. April 2019. Source: tinyurl.com/vitm1cfc 39 DuBow, Wendy and Pruitt, Allison-Scott. “The Comprehensive Case for Investing More VC Money in Women-Led Startups.” Harvard Business Re- view. September 2017 Source: tinyurl.com/2bhjg8tx 40 “Venture Capital, Social Capital And The Funding Of Women-Led Business- es.” SBA Office of Advocacy. April 2013. Source: tinyurl.com/zo7xqzld

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