Women-Led Startups Receive Less Than 2% of Global VC Funding: Report
In India, women-only founding teams receive about 2.3% of venture funding, while mixed-gender teams receive nearly 23%.
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Women-led startups across the world continue to face a significant funding gap despite growing participation in sectors such as healthcare, AI, climate tech and consumer innovation. Venture capital allocation remains uneven, limiting the ability of many women entrepreneurs to scale their businesses even as they demonstrate strong financial performance.
According to the Arise Ventures Diversity Report 2026, women-led startups receive less than 2% of global venture capital funding despite delivering strong returns. In India, women-only founding teams receive about 2.3% of venture funding, while mixed-gender teams receive nearly 23%. In the United States, women-only teams attract around 1% of venture funding compared to nearly 25% for mixed-gender teams, highlighting a persistent imbalance in access to capital.
The report notes that this disparity is particularly visible in healthcare, where women remain both major consumers and underrepresented innovators. Less than 2% of global healthcare research and development funding is directed toward women’s health, even though women make the majority of healthcare decisions within families and experience distinct medical conditions that often remain under-researched.
At the same time, the economic opportunity in this segment continues to grow rapidly. The global femtech market, which includes solutions for fertility, maternal care, hormonal health, menopause management and chronic disease treatment, is projected to exceed USD 100 billion by the end of the decade. The report suggests that startups working in maternal health, preventive healthcare and women’s wellness represent one of the most underexplored opportunities in the healthcare innovation landscape.
Data cited in the report also indicates that diverse founding teams tend to perform strongly in the venture ecosystem. They generate about 10% more revenue than male-founded startups and deliver up to 20% higher net internal rates of return for investors. Diverse teams are also reported to achieve about 35% higher return on investment and capture 70% more new markets than non-diverse peers.
Ankita Vashishtha, Founder and Managing Partner at Arise Ventures, said, “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.”
“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.
Despite the barriers, the presence of women founders in technology sectors continues to grow. Arise Ventures reports that around 75% of companies in its portfolio have at least one woman founder or co-founder, significantly higher than industry averages. The firm has also supported more than 100 women entrepreneurs through its investment and ecosystem initiatives.
Programs such as StrongHer, which supports women building technology-driven startups, have also contributed to expanding the pipeline of women-led innovation. The StrongHer AWE cohort received more than 300 applications from women founders across India, with 63 startups accelerated and over 25 investors participating in the ecosystem.
The report concludes that closing the funding gap for women founders represents both a social priority and a major economic opportunity as sectors like digital health, climate innovation and artificial intelligence continue to expand globally.
Women-led startups across the world continue to face a significant funding gap despite growing participation in sectors such as healthcare, AI, climate tech and consumer innovation. Venture capital allocation remains uneven, limiting the ability of many women entrepreneurs to scale their businesses even as they demonstrate strong financial performance.
According to the Arise Ventures Diversity Report 2026, women-led startups receive less than 2% of global venture capital funding despite delivering strong returns. In India, women-only founding teams receive about 2.3% of venture funding, while mixed-gender teams receive nearly 23%. In the United States, women-only teams attract around 1% of venture funding compared to nearly 25% for mixed-gender teams, highlighting a persistent imbalance in access to capital.
The report notes that this disparity is particularly visible in healthcare, where women remain both major consumers and underrepresented innovators. Less than 2% of global healthcare research and development funding is directed toward women’s health, even though women make the majority of healthcare decisions within families and experience distinct medical conditions that often remain under-researched.
