Why female entrepreneurs deserve more funding – and how the economy benefits

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Female entrepreneurs are a driving force in the economy, yet they continue to receive a disproportionately small share of funding. In the Netherlands, less than 1% of venture capital goes to women-led startups. This isn’t due to a lack of innovation or potential, but rather deep-seated biases and structural barriers that hinder access to financial resources.

Research shows that when women gain equal access to credit, banking, and investment opportunities, they reinvest up to 90% of their income back into their families and communities—compared to 30% to 40% for men. Closing the global credit gap for women could increase the average annual income for all genders by 12% by 2030, leading to significant economic growth.

Why isn’t this happening?

One primary reason is the investment industry’s reliance on familiarity and networks that are still predominantly male. Investors tend to back founders who resemble themselves, which means that women, especially women of colour, often struggle to break through these existing circles.

Another key issue is risk perception. Female entrepreneurs tend to take more calculated risks and are less likely to make impulsive financial decisions. Studies prove that women respect stop-losses more often, making them less likely to become overconfident and make irrational investment choices. Despite these advantages, the funding gap persists.

How can we invest more in women?

  1. Actively seek out female entrepreneurs: Investors must expand their networks beyond male-dominated spaces. Proactively seeking out female founders leads to a more diverse and profitable portfolio. According to the United Nations, closing the gender funding gap requires an additional $360 billion annually (UN, 2023).
  2. Recognize and challenge unconscious bias: The assumption that women only start businesses for lifestyle reasons is outdated and inaccurate. Female entrepreneurs launch and scale companies across all industries, from tech to finance to sustainability.
  3. Share knowledge and networks: Access to funding isn’t just about capital—it’s also about mentorship and connections. Women entrepreneurs benefit significantly from industry insights, strategic introductions, and sponsorship from established business leaders.

Want to make a Difference?

In collaboration with StartupAmsterdam and Rabobank Amsterdam, FEM-START offers a free training program (in Dutch) to support female entrepreneurs in securing funding and scaling their businesses. Investing in women isn’t just about fairness, but economic progress for everyone. Sign up if you would like to join https://fem-start.com/startupamsterdam/

Written by Roos van den Oosterkamp

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