Women-led startups get under 2% of global VC funding, says report

Women-led startups continue to receive a disproportionately small share of venture capital globally, securing less than 2% of total funding despite delivering stronger financial returns, according to the Arise Ventures Diversity Report 2026.

The report highlights a persistent capital gap even as women entrepreneurs expand into sectors such as healthcare, artificial intelligence, climate technology and consumer brands.

In India’s startup ecosystem, startups led by women receive only ₹4 out of every ₹100 raised by founders, reflecting a deep imbalance in access to venture funding.

The disparity mirrors global trends. Women-only founding teams receive about 2.3% of venture funding in India, compared with nearly 23% for mixed-gender teams. In the United States, women-only founding teams account for roughly 1% of venture capital funding, while mixed-gender teams receive close to 25%.

Funding gap despite stronger returns?

The report notes that women-led ventures often outperform their peers financially. Diverse founding teams generate about 10% more revenue than male-led startups and deliver up to 20% higher net internal rates of return (IRR) for investors.

They also achieve around 35% higher return on investment and are able to capture 70% more new markets compared with non-diverse teams, suggesting a strong commercial case for greater investment in women founders.

“The funding gap for women founders is no longer a hidden issue, the data clearly shows that women-led startups receive a disproportionately small share of venture capital despite consistently delivering strong financial returns and expanding into new markets,” said Ankita Vashishtha, founder and managing partner at Arise Ventures.

“Closing this gap is not just about inclusion; it represents one of the largest untapped economic opportunities across sectors such as healthcare, climate technology, AI and consumer innovation,” she added.

Opportunity in women’s health and climate tech

The funding disparity is particularly visible in healthcare innovation. Globally, less than 2% of healthcare research and development funding is directed toward women’s health, even though women make the majority of healthcare decisions within households.

This comes even as the global femtech market is projected to exceed $100 billion by the end of the decade, driven by demand for solutions in fertility, maternal care, hormonal health and menopause management.

Women-led startups are also becoming increasingly active in climate technology. According to the report, through its Climate Change Innovators Cohort, Arise Ventures has supported 15 climate-focused startups, half of which are led by women. These ventures are working on solutions ranging from clean energy and carbon capture to sustainable agriculture and circular packaging.

The report also points to the broader opportunity in emerging technology sectors. The global digital health market, valued at over $376 billion in 2024, is expected to surpass $1.5 trillion by 2032, while the direct-to-consumer technology market could reach $503 billion by 2030.

Ecosystem support expanding

Despite funding challenges, the number of women founders across technology sectors is gradually increasing. As part of its Vision 2030 roadmap, Arise Ventures aims to support more than 100 startups, maintain at least 70% women-led representation in its portfolio, and deploy $25 million toward inclusive and sustainable ventures, the report said.

Its StrongHer platform, which backs technology-driven women-led startups, received over 300 applications from founders across sectors including artificial intelligence, enterprise software, healthcare and climate technology, the report added.