It takes twice as long for women founders to succeed in tech

Successful female tech founders need to have twice as much experience in tech than male founders to secure venture capital (VC) funding, according to a new report.

Wokelo, an AI-powered insights platform for financial services, analysed 136 startups and female founder profiles that raised the most VC funding (a form of private equity funding for fast-growth companies) over the past two years.

The report shows that in advanced tech and AI sectors, the average industry experience required to win VC funding among female founders is 18 years. In comparison, men typically require just nine years to achieve similar levels of success.

Higher expectations for women in business

In the UK, some of the most exciting new startups, as well as the top-funded, are based in the technology sector. But the latest data from Wokelo demonstrates that the bar is considerably higher for women on their path to success within the industry.

Wokelo’s findings show that women need a minimum of 12 years of leadership experience to gain VC funding, versus the male average of nine, highlighting a ‘Gender Experience Gap’ in accessing early-stage capital.

In terms of education, Wokelo also uncovered that a significant proportion of female founders in the top tech startups have specialised or advanced degrees, such as postdoctorates or PhDs.

In comparison, Wokelo finds that the ‘college dropout turned tech mogul’ trajectory is not uncommon when looking at male founders. Some of the world’s most successful male businessmen, including Mark Zuckerberg and Steve Jobs, are college dropouts.

No wonder that, with women needing outstanding education and decades of professional experience to get started, male founders today dominate the tech industry.

It’s a vicious circle. Men, by dominating the conversational space, solidify their position within key business networks. This creates an exclusionary environment, where women may find themselves denied access to valuable professional connections.

The Motherhood Penalty

One major cause for Wokelo’s findings could be the Motherhood Penalty. This refers to the fact that women are statistically more likely to take career breaks or work part-time to dedicate time to childcare.

While maternity leave and pay is due to increase in April 2025, by taking time out of their career, working mothers may be delayed in accumulating the same length CV as men, further contributing to the Gender Experience Gap and its influence on VC funding.

On the brighter side, several female-led companies are excelling in sectors such as biotech, pharmaceuticals, and healthcare.

Notably, Vinehealth is providing innovative, empathetic solutions to support patients battling cancer. Hormona is another standout platform for hormone-related support while Walking on Earth has launched an AI coaching platform to tackle workplace stress.

Clearly, despite the funding challenges, female founders continue to thrive and make significant contributions to critical issues facing humanity.

Funding disparity fuels gender experience gap

VC funding for women-owned businesses has always lagged behind men. In 2024, all-women founding teams raised only 2.2% of total venture capital allocated.

In November of 2024, the government unveiled a new £250m fund for women founders in an attempt to close this gap.

While money certainly talks, a change in investor mindsets will be necessary to properly address the root causes of gender inequality in business.

In the meantime, there are several business grants for women available geared towards combatting the gender funding gap.