Female-Led Blockchain Startups Receive Only Six Percent of Overall Funding
A recent report by Bitget has revealed a concerning disparity in funding allocation between male and female-led blockchain startups. The study, conducted over a two-year period, utilized both qualitative and quantitative data to shed light on the existing gender inequality within the industry and offer potential solutions.
The research highlighted several key factors contributing to the ongoing funding gap faced by female-led startups. These include general trends in startup investing, the overall state of the crypto market, investor sentiment, and investor bias. Alarmingly, over 90% of funding goes to male-led projects, which significantly impacts the availability of resources for female-led startups.
To gain up-to-date insights into market evaluation principles and potential trends, the Bitget team focused on data from 2022 to the first three quarters of 2023. The research revealed that the prevalent bearish sentiment within the industry led to a 61.6% drop in deals in 2022, resulting in smaller investment volumes. The lowest recorded figure was $2.0 billion, constituting only 29.1% of the peak seen in early 2022.
Statistics indicate that male-led startups attracted a staggering $27.9 billion in funding, while their female-led counterparts raised a mere $1.8 billion, representing a mere 6.3% of the overall investment amount. Although the share of female-led startups saw a slight increase from 8.3% in 2022 to 8.6% in Q3 of 2023, the correlation between founder gender and investment volumes cannot be ignored.
The implications of this gender bias on the evolving blockchain-based economy are significant. The industry prides itself on being inclusive and global, advocating for equal opportunities for all. However, the disproportionate funding allocation reveals an unacceptable phenomenon that needs to be urgently addressed.
Gracy Chen, the managing director of Bitget, commented on the report, stating: As a leader in the crypto industry, we acknowledge our responsibility to address uncomfortable truths and catalyze meaningful changes. The disparities illuminated by our study serve as a poignant reminder that we must proactively strive for an ecosystem where talent and potential are the sole criteria, devoid of gender bias.
In addition to highlighting the funding gaps, the report also sheds light on other critical dynamics within the industry. Investor sentiment, influenced by market conditions and founder gender, plays a significant role in determining startup potential and viability.
Bitget, established in 2018, is a renowned cryptocurrency exchange and Web 3.0 company. With over 20 million users across more than 100 countries and regions, Bitget aims to empower users to trade smarter through innovative features such as copy trading. They also offer a comprehensive multi-chain crypto wallet called Bitget Wallet, which provides various Web 3.0 solutions and features.
The findings of Bitget’s report demand immediate attention from the crypto industry. The underrepresentation and unequal distribution of funding between male and female-led startups hinder the sector’s growth potential and limit opportunities for talented women. It is crucial for the industry to work towards creating an inclusive environment where gender bias has no place and everyone can thrive based on their potential and abilities.
