Global Funding Trends for Women-Led Startups
Funding for women-led tech companies worldwide saw a decrease in 2024. Overall, these companies secured $29.6 billion, an 11% drop compared to the $33.1 billion raised in 2023. This data is according to recent reports from the startup analytics firm Tracxn.
India’s Position in the Global Ecosystem
Despite the global decline, India has maintained its position as a key destination for investments in women-led tech ventures. The country currently ranks second globally, following the United States, in terms of all-time funding received by companies founded by women, with a total of $26 billion mobilized to date. India is home to more than 7,000 active, women-led startups, constituting 7.5% of all active startups in the nation.
In 2024, India held the third position worldwide in funding raised by startups co-led by women, behind the US and the UK. The country accounted for 3.96% of the overall funding raised by women-led startups across the globe.
Key Investment Trends and Sectors
In 2024, the Enterprise Applications, Life Sciences, and FinTech sectors were the most attractive for women-led startups. The Enterprise Applications sector, specifically, received $16.1 billion. Three companies reported significant investments of over $1 billion each in 2024: Open AI, Abound, and Wiz. Additionally, 45 funding rounds surpassed the $100 million mark in 2024.
Seed-stage investors such as Y Combinator, Techstars, and Antler were active in 2024, while Lightspeed Venture Partners, General Catalyst, and Accel led in early-stage investments. Key late-stage investors included Notable Capital, Sapphire Ventures, and Softbank Vision Fund.
The retail sector emerged as a leading sector based on the investments raised by women-led startups, securing $7.8 billion in all-time funding. Edtech and Enterprise Applications also garnered substantial investments.
Geographical Analysis
In terms of cities, San Francisco, New York City, and London led the way in city-wise funding in 2024, continuing their status as significant global tech hubs. Within India, Bengaluru currently leads in the number of women-led startups and in total funding raised, followed by Mumbai and Delhi NCR, according to the Tracxn report.
Unicorn and Acquisition Trends
India’s journey with women-led unicorns saw robust growth in 2021. However, 2023 and 2024 saw no new unicorns. Globally, 14 women-led unicorns materialized in 2024, in contrast to 6 in 2023. Five women-led startups in India went public in 2024.
The peak of acquisitions for women-led startups occurred in 2021, with a total of 45 buyouts. This number decreased in subsequent years, reaching 16 acquisitions in 2024.
Government Initiatives and the Future
Recognizing the challenges faced by women-led startups, various governments have initiated programs aimed at empowering women entrepreneurs. For example, the Indian government has rolled out schemes such as the Trade Related Entrepreneurship Assistance and Development (TREAD) program, which channels financial aid through NGOs. These initiatives are designed to create a more equitable entrepreneurial environment while providing financial backing, training, and networking opportunities.
While there is still work to be done in closing the gender funding gap, women-led startups are significantly impacting India’s growth story, as per Tracxn.
