Scaling a startup requires capital to develop technology, hire top talent, and achieve product-market fit. While funding is a challenge for most entrepreneurs, female founders face additional barriers that make securing investment even tougher.
Despite their capabilities, systemic biases and limited access to investor networks continue to hold many women back from raising the capital they need.
According to data from The Big Deal, female-led startups raised just $48 million in 2024, a stark decline compared to previous years and four times less than in 2023. Meanwhile, male-founded startups secured $2.2 billion. This funding disparity highlights a broader issue—one that firms like Norrsken22 are working to address.
Norrsken22, an Africa-focused growth fund, has actively invested in female-led businesses, including Credrails, a fintech company led by Pauline Wanjiku Githugu, and Sabi, a Nigerian B2B e-commerce platform founded by Anu Adasolum.
Speaking with TechCabal, Lexi Novitske, General Partner at Norrsken22, and Precious John-Adeyemi, Investment Analyst, shed light on the challenges female entrepreneurs face and what can be done to bridge the funding gap.
When asked about the barriers to funding, Novitske pointed to the difficulty of networking. “Everyone struggles with networking, but female founders often engage within their immediate circles. The investment space, however, remains largely male-dominated.”
John-Adeyemi added that the type of businesses women build also affects funding opportunities. “Women tend to start businesses in sectors that venture capitalists view as less scalable—consumer goods, education, and healthcare. These sectors are crucial to the economy but don’t always fit the high-growth profiles favored by VCs.”
Progress and Shifting Perceptions
Despite these challenges, progress is being made. More women are joining investment teams and leading funds, gradually changing the landscape. Novitske believes this shift is beginning to pay off.
“Investors have seen female-led companies scale and deliver strong returns. Success speaks louder than stereotypes.”
John-Adeyemi added that awareness of the funding gap has led to the rise of female-focused venture funds, accelerators, and grants. “More investors are now tracking gender diversity metrics in their portfolios and actively seeking female-led startups. At Norrsken22, we ensure female founders are well-represented in our deal pipeline. It’s encouraging to see other VCs following suit.”
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