Why is it Challenging for Women Entrepreneurs to get Funding
The entrepreneurial landscape in 2025 is vibrant and dynamic, yet challenges persist for women entrepreneurs, particularly in securing funding. Despite growing awareness and efforts to address gender disparities, the path to obtaining capital for women-led startups remains fraught with obstacles. Men continue to dominate the entrepreneurial ecosystem, accounting for 86% of entrepreneurs in India.
In contrast, women make up only 14%, as per recent studies by NITI Aayog. This skewed representation has significant implications for funding opportunities available to women.
The Current State of Women Entrepreneurs
Over the past decade, women entrepreneurs have made significant strides in industries ranging from technology and e-commerce to healthcare and education. However, their representation in the startup ecosystem remains disproportionately low. A 2024 report by WISER (Women in Startup Ecosystem Research) reveals that women-led startups constitute 18% of the ecosystem but receive less than 8% of total funding. This glaring disparity underscores the systemic challenges women face, including access to networks, mentorship, and venture capital.
The Gender Bias in Funding
Gender bias remains one of the most significant hurdles for women entrepreneurs. Investors often harbor subconscious biases, perceiving women-led businesses as riskier or less scalable.
A 2024 study by Bain & Company highlighted that 63% of women entrepreneurs reported experiencing bias during funding pitches. This bias often manifests in:
- Skeptical Questions: Women founders are often asked risk-oriented questions, while their male counterparts receive growth-oriented ones.
- Doubt Over Leadership: Investors may question a woman’s ability to lead a business, particularly in male-dominated sectors like technology and manufacturing.
For instance, Divya Gokulnath, the co-founder of BYJU’S, recounted how early investors doubted her ability to manage the scaling needs of the platform. However, her resilience and innovative approach proved otherwise, making BYJU’S a global ed-tech giant.
Lack of Representation Among Investors
The dearth of female investors exacerbates the funding gap. In India, only 12% of venture capitalists are women, as per a 2023 report by Indian Angel Network. Shared experiences and a mutual understanding between investors and entrepreneurs can mitigate bias. Female investors are more likely to support women-led ventures, creating a ripple effect in addressing gender disparities.
Organizations like She Capital and Kalaari Capital’s CXXO Initiative are making strides in this direction. These firms focus on funding women-led startups and providing mentorship opportunities. However, such initiatives need to scale significantly to create a measurable impact.
The Capital Challenge
Securing capital is challenging for any entrepreneur, but women face additional barriers. The global approval rate for venture capital funding stands at around 50%. For women, this rate drops significantly due to factors like:
- Limited Networks: Women often lack access to the same professional networks as men, which play a crucial role in securing funding.
- Smaller Funding Rounds: Women-led businesses often raise smaller funding rounds, which limits their ability to scale.
- Industry Stereotypes: In industries like technology, women entrepreneurs face skepticism about their technical expertise.
Case Study: Nykaa
Falguni Nayar, the founder of Nykaa, overcame these challenges through meticulous planning and a clear vision. Her focus on creating a trusted beauty and wellness platform resonated with investors. Nykaa’s IPO in 2021 was a landmark moment, proving that women-led businesses can achieve remarkable success when given the right support.
The Persistent Stereotypes
Cultural and societal stereotypes continue to shape perceptions of women entrepreneurs. Successful entrepreneurs are still often visualized as men, reinforcing biases in decision-making processes. This stereotype affects both funding opportunities and the broader acceptance of women-led businesses.
For example, a 2024 survey by the Indian Institute of Management, Ahmedabad, revealed that 72% of respondents associated entrepreneurship with male attributes like risk-taking and assertiveness. Such stereotypes undermine women’s credibility and make it harder for them to access funding.
Subconscious Bias and Its Impact
Subconscious biases are deeply ingrained and often go unnoticed. Even female investors sometimes view women-led businesses as higher risk. These biases stem from societal conditioning and historical norms that have long associated leadership and entrepreneurship with men.
Example: Shark Tank India
In the latest season of Shark Tank India, women entrepreneurs pitched only 30% of the ideas, yet they secured disproportionately less funding compared to men. Judges—both male and female—showed a preference for male-led teams, highlighting the pervasive nature of subconscious bias.
Structural Challenges in 2025
The structural barriers to funding for women entrepreneurs in 2025 include:
- Complex Regulatory Frameworks: Navigating legal and compliance requirements can be more challenging for women, especially first-time entrepreneurs.
- Access to Credit: Women face difficulties obtaining loans due to a lack of collateral or limited credit history.
- High Competition: The rise of startups in India has increased competition for limited venture capital funds.
Addressing the Challenges
Efforts to address these challenges are gaining momentum. Here are some actionable strategies:
1. Building Inclusive Networks
Creating professional networks for women entrepreneurs can provide access to mentors, investors, and peers. Organizations like Women Entrepreneurs International and WEConnect International are leading the way in fostering such networks.
2. Increasing Female Representation in VC Firms
Promoting gender diversity in venture capital firms can help reduce biases. For instance, Sequoia Capital India recently announced a diversity-focused hiring initiative to bring more women into decision-making roles.
3. Providing Targeted Support
Government schemes like Stand-Up India and Startup India offer financial and technical assistance to women entrepreneurs. Expanding these programs to include mentorship and networking opportunities can enhance their impact.
4. Leveraging Technology
Digital platforms can bridge the funding gap by connecting women entrepreneurs with global investors. Platforms like Crowdfund Her and SheEO enable women to raise capital without traditional gatekeepers.
Success Stories to Inspire
1. Zivame’s Rise to Success
Richa Kar founded Zivame, an online lingerie retailer, in 2011. Despite facing societal taboos and investor skepticism, she secured funding from firms like IDG Ventures and Kalaari Capital. Zivame’s success highlights the importance of persistence and market understanding.
2. Biocon’s Global Impact
Kiran Mazumdar-Shaw, the founder of Biocon, started her biotech company with limited resources and faced skepticism due to her gender. Today, Biocon is a global leader in biopharmaceuticals, showcasing how resilience and innovation can overcome barriers.
The Road Ahead
While challenges persist, the ecosystem for women entrepreneurs is evolving. In 2025, several trends indicate a more inclusive future:
- Rise of Women-Focused Funds: More VC firms are launching funds dedicated to women-led startups.
- Corporate Support: Companies like Google and Amazon are running accelerator programs for women entrepreneurs.
- Global Collaboration: Cross-border initiatives are providing women access to international markets and investors.
Conclusion: Empowering Women Entrepreneurs in 2025
The journey for women entrepreneurs remains challenging, but progress is evident. By addressing biases, increasing representation, and providing targeted support, we can create an equitable entrepreneurial ecosystem. Women entrepreneurs are not just breaking barriers; they are setting benchmarks for success.
At CO-OFFIZ, we are committed to supporting women entrepreneurs by providing resources, mentorship, and a collaborative workspace to help them thrive. Together, we can build a future where every entrepreneur, regardless of gender, has an equal opportunity to succeed.
About CO-OFFIZ : Coworking Space in Delhi-NCR
Co-Offiz is a leading provider of coworking spaces in Delhi-NCR tailored for young professionals, startups, freelancers, and entrepreneurs. We emphasize a collaborative work culture that enhances productivity while providing a hassle-free and aesthetically pleasing environment based on Vastu principles.
Our modern amenities include high-speed internet, unlimited tea/coffee, breakout zones, power backup, and CCTV security. Our vibrant meeting rooms feature LED TV projectors and ergonomic chairs, fostering an ideal workspace.
With locations in Preet Vihar (East Delhi), Janakpuri (West Delhi), Netaji Subhash Place (North Delhi), Noida Sec-63 and Gurugram Sec-58, we offer flexible seating, dedicated desks, and private cabins at competitive prices, all conveniently located near metro stations for easy access.
