On the occasion of Women’s Day, women entrepreneurs weigh in on the gender funding gap persistent in the Indian startup landscape. Lata Upadhyay, Barnali Das, and Monalisha Thakur outline the key challenges women face while raising capital and suggest structural changes to make funding more gender-balanced.
Entrepreneurship is a gender-agnostic profession, however, a funding gap persists as women entrepreneurs face a significant funding gap in the startup ecosystem. They receive only a fraction of global investment funding compared to male founders. This disparity is due to systemic biases, limited investor representation, and ingrained gender stereotypes.
According to the World Economic Forum, women entrepreneurs face a $1.7 trillion finance gap, despite owning 22 per cent of micro-enterprises and 32 per cent of small and medium enterprises globally. Despite the challenges, research shows women-led startups deliver higher returns, prioritize sustainable growth, and bring innovative solutions. To bridge this gap, inclusive funding practices, mentorship networks, and investor diversity are needed.
This Women’s Day, we want to focus on understanding the gender funding gap in order to work towards bridging it. To understand the on-ground structural challenges, we reach out to women founders to tell us their take on bridging the funding gap.
Lata Upadhyay, Co-founder & Chief Brand Officer, Kati Patang
Women Entrepreneurs Face Critical Scrutiny
Investors often perceive women entrepreneurs as higher risk or assume they lack the required business acumen to scale a venture. This stereotypical mindset continues to persist despite a growing number of women-led ventures and is especially more pronounced in male-dominated categories such as Alcohol. Women have to go through a lot more critical scrutiny in defending financial projections and understanding of the core business.
Mentorship & Programs for Tailored Women Founders
We need lots more mentorship and accelerator programs that are especially tailored for women founders. Besides helping with getting the pitch right, it will help with accessing the investor network. Moreover, having more women in leadership roles in venture capital firms and angel networks will pave the way for greater inclusivity in the capital-raise ecosystem. I have seen at times having a woman on the other side of the table leads to more open-minded conversations, relying less on outdated perceptions and being more willing to recognize the potential of women-led businesses.
Embrace Your Uniqueness
I have a quote by Oscar Wilde at my desk that never fails to inspire me: "Be yourself - everyone else is already taken". To be truly effective as an entrepreneur, and a changemaker, you have to do things your way in your authentic style. Embrace your uniqueness, keep pushing boundaries, and support other women in their unique journeys. Cheers!
Barnali Das, Co-Founder, BankersKlub
Gender Bias in Investment Decisions
Building a company is a brutal process. Founders know that juggling people, processes, and product market fit is a tough roller coaster ride. While the entrepreneurship journey is gender-agnostic, the challenges women founders face are not.
Gender bias in investment decisions is one of the key challenges faced by women founders. Studies show that women-led startups receive a disproportionately lower share of venture funding compared to male-led businesses, often due to unconscious biases among investors. Women entrepreneurs encounter skepticism and higher scrutiny, with investors focusing on risk mitigation rather than growth potential. Limited access to investor networks makes it harder for women founders to get introduced and build relationships with PE & VC decision-makers. Many also battle with funding stereotypes, where investors assume women-led businesses will have lower scalability. This creates a confidence gap, forcing women to prove themselves more rigorously when it comes to downside protection.
Focus on Business Scalability & Fundamentals
Fostering an inclusive culture within the startup and VC ecosystem is the need of the hour. Addressing the challenges faced by women led businesses requires a more diverse investor representation, more women in decision-making roles at VC firms, and a strong network of women-led angel investors.
Secondly, dedicated funding initiatives for women-led startups, accelerator programs, and a shift toward performance-based, rather than perception-based funding decisions will boost women founders a great deal.
Thirdly, PE/VCs could build mentorship and networking platforms to connect women founders with investors. Encouraging warm introductions for them and facilitating pitching opportunities for female entrepreneurs will also go a long way in empowering them.
Lastly, it's critical that investors are trained to stay away from gender-based perceptions and focus on business fundamentals and scalability. Standardized due diligence processes to ensure objective evaluation criteria would make the capital raising process more gender neutral, fruitful and transparent for all.
Trust Yourselves to Build a Convincing Narrative
Ladies, I know it’s easier said than done cause gender bias exists. So, let’s focus on building capital efficient businesses with robust revenue models and positive unit economics. Let’s also trust ourselves more to build a convincing narrative based on traction, user experience, and market size stats. And don’t forget, practice does make one better if not perfect. Practice pitching and pick up on what resonates with an investor. Happy International Women’s Day!
Monalisha Thakur, Co-founder & CMO, Tummoc
Women Founders face Risk-Focused Questions
Raising capital as a woman entrepreneur comes with its own set of challenges, but I’ve been fortunate to have investors who believe in our company's vision and potential. However, I’ve also heard from many fellow women entrepreneurs that the journey can be tougher than it needs to be.
One common challenge is unconscious bias—where women founders are often asked risk-focused questions, while their male counterparts are encouraged to talk about opportunities and growth. This can impact the level of confidence investors have in women-led businesses, even when the business fundamentals are strong.
Additionally, with fewer women in investment decision-making roles, there can be a disconnect in understanding different leadership styles or market approaches. While things are changing, we still have a long way to go in ensuring that capital is distributed based purely on merit and business viability.
Women Leaders bring Fresh Perspectives
The good news is that there is growing awareness around the gender funding gap, and many investors are actively working to change the status quo. From my experience, the best way forward is a combination of systemic changes and founder-driven initiatives.
For the investment ecosystem, having more women in decision-making roles can bring fresh perspectives and a more balanced approach to evaluating startups. Many of the investors I’ve interacted with understand this need and are making strides toward diversity in investment committees.
Dedicated funding programs, mentorship initiatives, and women-focused accelerator programs can also make a huge difference. Access to capital isn’t just about money—it’s also about networks, strategic guidance, and visibility. Having structured programs that support women founders can level the playing field significantly.
At the same time, it’s important for women entrepreneurs to own their narrative with confidence. Seeking the right mentors, building strong networks, and actively positioning their businesses for scalability and innovation can help navigate the challenges of fundraising.
Believe in Your Idea
To every woman entrepreneur out there—your vision, resilience, and leadership are shaping industries and driving meaningful change. While there are challenges, there are also opportunities, and the more we step up, the more we help shift the narrative.
I’ve been fortunate to work with investors who see potential beyond gender, but I also know that many women face barriers that shouldn’t exist. The key is to believe in your idea, take up space, and build a strong support system. Surround yourself with the right mentors, seek out opportunities that push your business forward, and never hesitate to claim what you deserve.
The startup landscape is evolving, and women-led businesses are making a mark across industries. Let’s continue challenging biases, creating space for future women entrepreneurs, and building businesses that redefine success.
