Funding for women-led startups is growing, Jeff reports in this Business Beat, at least in some areas of the country.
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Good morning, Paweł!
This morning in Business Beat we received data on how female founders are doing and how they are raising startup capital. The excellent news is that the situation is definitely improving, at least in some regions of the country.
In what areas is there an increase in funding for women-led startups? Well, PitchBook reports that Southwest is, well, hotly pursued by Austin, Dallas-Fort Worth and Phoenix. These metropolitan areas, like Washington, D.C. and Denver, have seen a surge in capital raised by women-founded startups in recent years. In fact, in these areas, funding has gone to women-led startups more than double over the last three years.
Now in Austin, Texas, women-founded startups have raised over $2.8 billion since the starting of 2020. For comparison, this represents a 161% increase over the total amount raised from 2008 to 2019. Dallas-Fort Worth is experiencing a similar increase of roughly 158%.
Which startups will receive money? Well, deals spanning healthcare services and systems, in addition to pharmaceuticals and biotechnology, are the basis for growth in the capital raised by female founders. In the Washington, D.C. metropolitan area, for example, women-founded startups and the pharmaceutical and biotech industries raised almost as much funding in 2020 and 2021 alone as they did in the entire 11-year period from 2008 to 2019.
The increased amount of funds going to women-led startups is not only the results of more transactions. Rather, the data shows that financing per company has also increased significantly. AND
n St. Louis, for example, average transaction value accomplished since 2020? $12.4 million. This is more than twice as much as in 11 years, i.e. from 2008 to 2019.
That’s really excellent news, Paul. I’d like to report it here on Business Beat. My name is Jeff Sloan and this is today’s Business Beat here on Great Voice of the Great Lakes, WJR.