How COVID-19 and the resulting recession are impacting female founders – ProWellTech
Last week The Exchange dug into recent data regarding the amount of venture capital raised by the founders. As a review, the numbers weren’t good.
In the third quarter of 2020, PitchBook data reported that the US-based founders raised $ 434 million in 136 rounds. That dollar amount was different from $ 841 million in the second quarter of 2020, for context. The numbers were a dramatic turnaround from where 2019 left the industry.
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The sharp decline in available capital is slowing the pace at which women start new companies in the COVID-19 era. There are other factors at play, new data from the Female Founders Alliance (FFA) indicate, but the funding drought isn’t helping.
Overall, the pace at which women indicate they intend to start a company, according to a group of women the AFF is following lengthwise, is slipping.
FFA, a community of female founders and a startup accelerator working to achieve greater gender diversity in technology, built a sample of 150 women from technology hubs “with a high probability of having entrepreneurial aspirations,” according to her. dataset. He asked them what their business goals were both before the arrival of COVID-19 and again in September.
The changes in responses before the pandemic and today are striking. Let’s look at the data in light of what we learned last week about the capital available to the founders and see what we can find out.