Despite women-led companies generating 2.5x higher returns per dollar invested compared to male-led businesses, yet they continue to receive only 1-2% of total venture capital funding.
Huge Thing with the support of the Visa Foundation, have conducted and shared with us a report on the state of female entrepreneurship in the Polish and Ukrainian startup ecosystems. The report highlights the ongoing gender funding gap, the challenges female founders face in securing venture capital, and the systemic biases that continue to hinder their growth.
AIN shared the key takeaways from the report below.
Gender representation in startups and funding gap
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In Poland, women make up 41% of startup founders, although this figure has declined in recent years. The proportion of startups with at least one female founder in Poland increased from 36% in 2021 to 56% in 2023.
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In Ukraine, women account for 18% of tech startup founders, showing growth but still limited representation.
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Only 1% of total venture capital funding in the Central and Eastern European region is directed to women-only founding teams.
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In contrast, 94% of VC funds go to male-led startups, while startups with mixed-gender teams receive 16.2%.
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Despite generating 2.5 times higher revenue, female-led startups receive 30% less funding compared to male-led startups.
According to the report, the femtech industry alone is projected to surpass $103 billion by 2030, proving that women entrepreneurs are driving market-defining innovations.
From the investor’s side, perceptions of female founders vary significantly. Some VCs are actively working to increase gender diversity in their portfolios, while others unknowingly reinforce systemic biases.
“Capital doesn’t have a gender…but investors still do”, noted Huge Thing.
Key superpowers of female founders
Female founders are often praised for their strong work ethic, multitasking abilities, empathy, and emotional intelligence, all of which help them lead effectively.
Their ability to forge strong relationships and innovate in sectors often overlooked by others is reshaping industries and fostering more inclusive leadership in startups.
Female founders experience scrutiny when fundraising
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Increased scrutiny of financial projections.
Female founders often face more intense scrutiny when presenting their financial projections. They are expected to demonstrate stronger metrics, clearer paths to profitability, and well-defined exit strategies to secure funding.
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Double standards in pitch meetings.
Female founders frequently experience more questioning about their financial projections and readiness. Investors often focus more on the stability and risk of their ventures, rather than emphasizing their growth potential.
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More rejections, but stronger resilience.
Female founders typically face longer fundraising cycles, enduring more rejections before securing funding. However, these challenges often make them more strategic and better prepared. Many women hesitate to approach venture capitalists because they feel they need to show more traction than male counterparts at the same stage of development.
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Higher expectations for financial metrics.
Female founders are often expected to present more robust financial metrics, clearer paths to profitability, and more specific exit strategies in order to secure investment. This reflects the heightened expectations they face compared to their male counterparts.
“Female Founders are building cutting-edge technologies and scalable businesses, yet they’re more frequently met with caution than confidence. It’s not a lack of ambition holding them back, it’s the rules of the game that aren’t set evenly. Contrary to stereotypes, women aren’t afraid of risk – they approach it with strategic foresight. Female founders are building sustainable, resilient businesses. This isn’t a weakness, it’s a competitive advantage that the startup ecosystem should recognize and reward”, says Maria Tyka-Majewska, Acceleration Lead at Huge Thing.
Main challenges to address
Female entrepreneurs encounter unique challenges such as overcoming fear and societal expectations, legal and procedural barriers, and lack of access to mentorship and networks.
For Ukrainian founders, these challenges are compounded by navigating new legal systems and adapting to unfamiliar environments in Poland due to displacement caused by russia’s ongoing war against Ukraine.
The report also offers advices to female funders:
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Build strategic networks. The right connections open doors to capital, mentorship, and growth. Prioritize networking, join industry groups, and seek out female-led investment communities.
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Embrace negotiation as a superpower. Confidence in the fundraising process is critical. Know your numbers, push back on unfair terms, and never settle for less.
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Leverage alternative funding sources. VC is not the only route. Grants, angel investors, crowdfunding, and impact funds are creating new pathways for women entrepreneurs.
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Advocate for structural change. The startup world needs more female investors, decision-makers, and role models. Supporting other women strengthens the entire ecosystem.
