Despite mounting evidence that women-led businesses deliver higher returns, funding for female founders in Africa hit a five-year low in 2024. Oyin Solebo, an investor with a strong track record of backing diverse teams, highlights the glaring gender funding gap—and why it’s a costly mistake.
Read on to learn why Oyin thinks that investing in women isn’t just about equity—it’s smart business.
In my modest startup portfolio of 24 African companies, 50% have women founders, and 29% have female CEOs. I’m looking for more! (If you’re a woman founder / diverse team – scroll down to pitch to me).
Each year, we’re confronted with another grim stat about the gender funding gap. In 2024, funding to African female founders hit a five-year low (Source: The Big Deal):
* Only 2% of VC funding went to female CEOs
* Just 5.5% went to gender-diverse founding teams
This isn’t just an equity issue, it’s a business one. The data is clear:
🤑 Startups founded by women return 2.5x more per dollar invested (BCG)
🏃♀️➡️ Women-founded businesses exit faster and for double the return (Pitchbook)
📈 Teams with women in 50%+ leadership roles see stronger sales growth, profitability & return on assets (EIB)
👭 Boards with gender diversity are 27% more likely to outperform financially (McKinsey)
🛒 In Africa, women influence 70–80% of consumer purchasing decisions.
I could go on – but you get it! We know what works. And yet, we keep making the same costly mistake: underinvesting in women.
📢 If you are a woman founder (not just CEOs) in Africa, fundraising at the pre-seed or seed stage, I’d love to hear from you! Pitch me your startup here: https://lnkd.in/dyWfATB3
Let’s #AccelerateAction
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