VC Funding: Diversity Drops Off in the Deal Sourcing Stage
In this panel discussion, the speakers examine gender diversity in venture capital funding. They note that women are represented proportionally in education, schooling, and even at the accelerator and incubator application stages. However, a dramatic drop occurs during the deal‑sourcing phase, which they attribute to the fact that most VCs are men whose personal networks and comfort zones bias their investment choices. This bias worsens through the pitch process, ultimately resulting in only about 3% of funded deals going to women. Some male VCs express a desire to fund more women but claim they cannot locate qualified female founders, highlighting a need for intentional changes in sourcing methods. Supporting data from the Founder Institute shows that 31% of global founders and 38% in the US, Canada, and Brazil are women, indicating a substantial pool of female deal flow exists. The speakers conclude that VCs must deliberately redesign deal‑flow processes, actively diversify their networks, and adopt inclusive practices to bridge the gap.
