Female founders’ uphill battle to secure venture capital has only grown steeper with time. Despite well-intentioned initiatives aimed at boosting investor readiness—sometimes leading to complaints of over-mentorship—funding disparities have worsened. In 2024, women-founded startups in Africa received just 1% of total VC funding in Africa, marking a five-year low.
On March 7, at Accelerating Investment into Women-Led Businesses, a roundtable organised by Spurt! and the UK-Nigeria Tech Hub, investment experts and entrepreneurs discussed why female founders continue to be sidelined in venture capital—and what it will take to change that. Their conclusion: the problem isn’t just about getting women “investor-ready.” Bias is baked into the system, from due diligence to deal flow, and until investors themselves undergo retraining and redesign their processes, they will continue to exclude female founders.
Gender bias among investors
“Even among gender-lens investors who claim to be addressing bias, there is a level of cognitive dissonance that reinforces outdated stereotypes in practice,” Temilade Denton, an Environmental, Social, and Governance at Alithea Capital, an impact investing firm, said during one of the group discussions.
Several participants agreeing with her, cited instances of women undergoing due diligence facing highly biased—sometimes absurd—questions. In one case, during a meeting, a prospective women-focused Limited Partner questioned whether a female general partner was too fashionably dressed to be taken seriously as an impact investor in Africa.
“She was a stylish woman, but he probably expected her to wear Birkenstocks or look scruffy,” Denton added.
While some investors vocalise these biases, others keep mute and quietly rule out women based on superficial judgements, while maintaining a blind spot for men.
Discrimination creeps into due diligence for female founders
Beyond individual biases, there are structural issues in the due diligence process that disproportionately exclude women. At the event, investment support experts from several investment firms—including the Lagos State Employment Trust Fund (LSETF), Leap Africa, the Innovation Fund, and Hoaq Club, an investor in food delivery startup Chowdeck—explored the question: at what point does discrimination enter the due diligence process?
Discrimination manifests in investment screening, and some participants like Kristin Wilson, managing partner at Innovate Africa Fund, noted that “a man’s pitch deck is often more polished than a woman’s.” This is not necessarily because women are less prepared, but because men typically have greater access to early funding, mentorship, and professional networks that help refine their materials.
“We need to train our analysts to look beyond aesthetics. Just because a deck isn’t visually appealing doesn’t mean the business isn’t strong,” Wilson said during the group discussion.
Some participants also suggested that removing demographic biases—such as those related to gender, educational background, or personal networks—could help create a more level playing ground. Additionally, they proposed affirmative action measures, such as offering tax incentives to firms that actively work towards achieving gender balance in their investment portfolios. By rewarding inclusivity, such policies could encourage investors to adopt fairer funding practices and challenge entrenched biases in venture capital allocation.
Women still have a part to play
Nonetheless, female founders often face scepticism when they do not follow up with investors after receiving feedback. One of the participants noted; “No woman has ever come back after feedback, but men do.” This disparity may stem from confidence gaps, limited access to advisory support, or a reluctance to navigate repeated rejection—factors that ultimately reinforce funding inequalities.
To bridge this gap, several initiatives have emerged to support women founders. The Lagos State Employment Trust Fund (LSETF), for instance, provides technical assistance to help women implement due diligence recommendations, improving their chances of securing investment. While such programmes offer valuable support, many female entrepreneurs still struggle to access the advisory services and financial expertise needed to compete on equal footing.
As investors work to reduce their biases, women must also take proactive steps to increase their visibility, showcase their growth trajectories, and build strong professional networks. Amaka Opara founding partner of Weave Capital, a multi-stage venture capital firm that invests in and mentors startups, emphasised the importance of this approach.
“That’s the only way to get capital in a world where investors aren’t looking for you,” she said.
