COVID-19 Impact on Women-Founded Startups: Funding Drops 24% in H1 2020

Bengaluru, October 29: The coronavirus pandemic has affected everyone, from businesses being shut to people being offered pink slips. It has not been a great time for women-founded and co-founded startups. According to an IANS report, funding fell 24 percent to $280 million in the first half of this year, compared to $369 million in the same period last year.

It was witnessed that finding declined across all the three stages- early, growth, and late -- compared to H1 2019, said the report by MAKERS India. The report titled "State of Women in Tech Entrepreneurship in India 2020" shared that many women-led startups in order to stay afloat in the middle of the pandemic scaled down their operations or pivoted their business models

There were a few women, who infact branched out to different operations. Like women behind some apparel startups branched out to manufacturing protective face masks and PPE kits.

The positive news was that despite Covid-19, startups with at least one woman founder were able to secure 71 funding deals in H1 2020, at par with H1 2019 (70 deals) and H1 2018 (70 deals).

The study highlighted an interesting trend that between 1990 and 2010, only 26 startups had at least one woman founder. However, 75 startups added at least one woman founder by 2014 and 184 more by 2019. Female-founded and co-founded tech startups in India currently stand at 285.