At Bloom, we believe that diversity and inclusivity are key to creating a thriving and innovative startup ecosystem. We recognize that there are still significant gender disparities in the realm of startup investment, with women-led startups receiving only a small fraction of the total venture capital funding. We know that this is not just an issue of fairness, but also of economic opportunity and growth.
One of our guiding principles is that if we look at the distribution of participation in different professions or leadership positions, and it doesn’t match the global population distributions, then there is likely a sign of systemic bias and inequality. The same applies to the distribution of investment in startups. When women entrepreneurs are denied access to funding, it limits their ability to grow and succeed, which in turn limits the growth and success of the startup ecosystem as a whole.
That’s why at Bloom, we strive to create programs that provide equal opportunities and support to all entrepreneurs, regardless of their gender, race, or background. We believe that by fostering a more diverse and inclusive startup ecosystem, we can unlock the full potential of innovative ideas and drive meaningful social and economic change. We are committed to doing our part to address systemic bias and inequality and to ensure that all entrepreneurs have an equal chance to succeed. We are proud that our latest programs have reached an almost equal split between the genders of the applicants.
Despite the progress that has been made, women still face unique challenges when it comes to accessing funding for their businesses. Shockingly, women-led startups received only 2.3% of total venture capital funding in 2020, according to a report by Crunchbase. That’s just not good enough.
But it’s not all doom and gloom. We’re here to talk about the positive impact that funding can have on women entrepreneurs and society as a whole. Let’s dive in,
First of all, funding is critical to the success of any business. It provides a foundation for growth and expansion, hiring employees, investing in research and development, and exploring new markets. Not only that, but companies founded or co-founded by women generate 10% more revenue than male-founded companies. Yet, here’s the kicker: women entrepreneurs only receive 3% of total funding. That’s a huge potential for growth left untapped!
Not only does funding for women entrepreneurs benefit individual businesses, but it also has a positive impact on the economy. A study by McKinsey & Company found that if women entrepreneurs received the same amount of funding as their male counterparts, it could add a whopping $4.4 trillion to the US economy by 2025. That’s some serious impact.
And let’s not forget about the broader societal implications of funding for women entrepreneurs. Women bring diversity to the business world and often have different perspectives and experiences that can lead to innovative and unique business ideas. Businesses owned by women also tend to have a positive impact on their communities, creating jobs and contributing to local economies.
So, fellow entrepreneurs, it’s clear that funding for women entrepreneurs is not just about achieving gender equality in entrepreneurship. It’s about unlocking their full potential, creating new jobs, and stimulating economic growth. At Bloom, we’re committed to providing the support and resources that women entrepreneurs need to succeed.
Let’s bloom together! 🌻