- Female-led Web3 startups received only 6.43% of the $27.85 billion in VC investments between Q1 2022 and Q3 2023.
- This low percentage of funding for female-led startups in Web3 is significantly lesser compared to the broader startup landscape, indicating a need for more inclusive funding practices.
In the rapidly evolving Web3 sector, a stark gender disparity in venture capital (VC) funding has come to light. According to a recent report by Bitget Research, startups created or led by women received a mere 6.43% of the $27.85 billion allocated to Web3 venture capital investments from Q1 2022 to Q3 2023.
Analyzing the Funding Landscape
This 6.43% translates to approximately $1.77 billion directed towards female-led Web3 startups, leaving a substantial $26.08 billion for their male-led counterparts. Notably, female-led startups comprised just under 9% of all firms in the sector, a figure that pales in comparison to their presence in various other fields. For the study, a
“female-led blockchain startup”
was defined as one where at least 50% of its executives were women.
The gender disparity in funding is more pronounced when considering the broader decline in VC funding for blockchain firms since 2022. Despite a slight rebound in the following quarter after a low of $2 billion in Q2 2023, the share of funding for female-led blockchain startups as of Q3 2023 is only 8.2%. This is significantly lower than the overall figure for startups in various fields, which stands at 20.3%, underscoring a critical need for measures to enhance inclusiveness and accessibility in the blockchain sphere for women.
A Global Perspective on Gender Disparity
The gender funding gap is not limited to Web3 but is a widespread issue in the venture capital domain. Bridget Greenwood, founder of The Bigger Pie, a U.K.-based organization supporting women in blockchain, highlighted that only 3% of all VC funding in the U.K. goes to female founders. This disparity is further compounded by the predominance of male venture capitalists, who, according to research by a team of Canadian and American scientists, often exhibit bias against feminine-stereotyped behaviors by entrepreneurs.
In conclusion, the data from Bitget Research paints a clear picture of the gender disparity in Web3 funding. This disparity not only reflects a broader issue in the venture capital industry but also calls for a concerted effort to create more equitable and inclusive funding practices, particularly in emerging and innovative sectors like Web3. Addressing this imbalance is crucial for fostering diversity and ensuring a more representative and equitable growth of the blockchain technology landscape.