Women-Led Startups Get Less than Two Percent of Global VC Funding
According to the Arise Ventures Diversity Report 2026, women-led startups still capture a disproportionately small share of venture funding despite the rapid expansion of markets addressing women’s needs.
Women-led startups receive less than two percent of global venture capital funding, while in India women-only founding teams receive around 2.3 percent of venture funding compared to nearly 23 percent for mixed-gender teams.
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In the US, women-only founding teams receive about one percent of venture funding, while mixed-gender teams account for nearly 25 percent.
The report highlights that the disparity is particularly stark in sectors such as healthcare, where women remain both the primary consumers and the most underrepresented innovators. Globally, less than two percent of 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 remain under-researched.
This funding gap persists even as the economic opportunity in women’s health expands rapidly. The global femtech market is projected to exceed $100 billion by the end of the decade, driven by growing demand for innovation across fertility, maternal care, hormonal health, menopause management, and chronic disease treatment.
The report notes that startups building solutions in maternal health, preventive healthcare, and women’s wellness represent one of the most underexplored opportunities in the healthcare innovation landscape.
Commenting on the report, Ankita Vashishtha, Founder & Managing Partner, Arise Ventures says, “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”.
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Studies show that women founders are 1.7 times more likely to reinvest profits into social impact initiatives and 3 times more likely to employ other women, strengthening community-level economic participation and inclusive job creation.
The report also points to climate technology as an emerging sector where women founders are increasingly active. Through its Climate Change Innovators Cohort (CCIC), Arise Ventures has supported 15 startups developing climate-focused solutions, half of which are women-led.
Beyond gender inclusion, the report highlights the scale of opportunity across technology sectors where startups are driving structural transformation. The global digital health market, valued at more than $376 billion in 2024, is projected to exceed $1.5 trillion by 2032, while the direct-to-consumer technology market is expected to reach $503 billion by 2030, growing at a compound annual growth rate of 16.3 percent. Artificial intelligence is projected to contribute nearly $19.9 trillion to the global economy by 2030, reshaping industries ranging from healthcare and finance to manufacturing and logistics.
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The report concludes that closing the funding gap for women founders represents not only a social imperative but also a significant economic opportunity, as new sectors such as women’s health, climate innovation, and digital healthcare reshape global markets.