The venture capital industry is consolidating rapidly, with the number of active VC firms in the U.S. dropping from 8,315 in 2021 to 6,175 in 2024. As capital becomes concentrated among fewer players, underrepresented founders — particularly women-led startups — are facing even greater challenges when it comes to securing funding.

Even though women-led startups consistently show lower failure rates and higher returns, startups with only female founders still consistently receive less than 2% of VC funding. This is largely due to implicit biases and pattern recognition. Investors often favor founders who resemble past successes — typically male-led companies. Larger firms, in particular, prioritize established networks and lower-risk investments. That makes it even harder for entrepreneurs of diverse backgrounds to break into these circles. READ MORE