Despite women’s significant influence in the market, female-only startups in New Zealand receive less than 3% of venture capital investments, with only one in 10 securing any funding at all.
Why it matters: This gender disparity in funding hinders the growth and success of women-led businesses, which have been shown to generate higher returns on investment than their male-led counterparts.
The details:
- A University of Auckland study revealed that female-only startups received just $4.6 million out of $160 million invested by 20 venture capital funds in 2024.
- Research suggests that 85-90% of New Zealand’s venture capital is controlled by white men, who tend to invest in founders with similar demographics.
- Even when funded, female-led businesses receive only a fraction of the funding that male startups receive.
Investing in women-led businesses could add $5 trillion to the global economy and approximately $32 billion to the New Zealand economy, according to United Nations research.
What they’re saying:
- “These are appallingly low figures. What makes them worse is the disparity,” said Jenny Rudd, co-founder of the Gender Investment Gap research initiative.
- “There’s a tsunami of data showing that women-led businesses return more investment on every dollar invested than male-only led businesses,” Rudd added.
- “The data is clear: investing in women isn’t just the right thing to do, it’s the smart thing to do,” stated Dame Theresa Gattung, co-founder of GIG.
The other side: The investment community argues that funding decisions are based on the merits of the business, not the gender of the founders.
What’s next: Experts call for the investment community to actively support and invest in female entrepreneurs, ensuring equal opportunities for growth and success in the business world.
