Female-led blockchain startups currently receive only 6% of the total funding even as the emerging world of Web3, encompassing blockchain technology, decentralised finance, and the metaverse, holds immense potential to grow.
Especially with the recent SEC Bitcoin ETF approval, a new wave of institutional investors and retail are climbing into crypto, writes Gracy Chen, Managing Director, Bitget.
However, a significant disparity exists within this space, with women-led startups receiving a disproportionately small share of funding compared to their male counterparts. Data from Bitget Research reveals that only 6.43% of Web3 venture capital funding in Q3 2023 went to female-led startups. This underrepresentation not only hinders the growth of promising ventures but also limits the potential of Web3 to reach its full potential. The study calls for addressing gender bias to create a more inclusive ecosystem in the blockchain industry.
Strategies for VCs
Investors, particularly venture capitalists (VCs), play a crucial role in shaping the future of the Web3 ecosystem, the decentralised internet built on blockchain technology.
As this space continues to evolve, VCs have the opportunity to foster innovation and inclusivity, particularly focusing on women-led startups, by implementing several key strategies:
●Addressing bias - conscious or unconscious
The VC industry has historically struggled with a lack of diversity, both in terms of the funded startups and the composition of VC firms themselves. VCs can actively work to mitigate unconscious bias in their decision-making processes to ensure a level playing field for all entrepreneurs.
●Investing in underrepresented women founders
By deliberately seeking out and supporting startups led by individuals from underrepresented backgrounds, VCs can contribute to a more diverse and inclusive Web3 ecosystem. This not only aligns with ethical considerations but can also lead to discovering promising opportunities that might be overlooked otherwise.
●Focus on the product, not the founder
Encouraging VCs to prioritise the merit of the startup itself, including the strength of the idea, the business plan, and the team's execution capabilities, can lead to fairer funding decisions.
●Setup dedicated funds
Allocating a portion of investments to funds specifically focused on women entrepreneurs can provide crucial support and resources tailored to their needs.
Strategies for women entrepreneurs
While navigating the funding landscape can be challenging for all entrepreneurs, women often face additional hurdles. However, by employing various strategies, women entrepreneurs can increase their chances of securing funding and achieving their business goals:
●Develop a strong business plan
A well-defined and comprehensive business plan is crucial for attracting investors. This plan should clearly articulate your business solutions, target market, competitive advantage, and financial projections.
●Engage, and leverage network
Connect with other women entrepreneurs, mentors, and investors. Attending industry events, joining relevant online communities, and seeking out mentorship opportunities can provide valuable support, guidance, and potential connections to funding sources.
●Put yourself out there
Women entrepreneurs often bring a unique perspective and approach to problem-solving. Highlighting this in your pitch and showcasing how your perspective can contribute to the success of your business can be a valuable asset.
●Consider alternative funding options
Explore a variety of funding options beyond traditional venture capital, such as angel investors, crowdfunding platforms, grants specifically designed for women-led businesses, and government programmes.
Bitget's Blockchain4Her initiative
Beyond the strategies outlined for VCs and women entrepreneurs, a recent initiative aims to bridge the gender gap in the Web3. Bitget recently launched "Blockchain4Her," a $10 million initiative dedicated to supporting female-led businesses in the blockchain sector.
This initiative was born out of Bitget's commitment to fostering diversity and inclusion in the industry.
Blockchain4Her aims to address this gap by offering a multifaceted approach:
●$10 million fund: The initiative aims at promoting gender diversity and inclusivity in the blockchain space, with a $10 Million commitment.
●Incubation programmes: These programmes will provide female entrepreneurs with the tools, mentorship, and resources needed to refine their business ideas and scale their ventures.
●Pitch competitions: Pitch competitions will offer female founders a platform to showcase their businesses to potential investors and secure additional funding.
●Recognition events: Recognising and celebrating the achievements of women in Web3 will inspire and empower others to pursue their entrepreneurial ambitions in this space.
Final thoughts
Bridging the funding gap requires a collaborative effort beyond individual actions. Raising awareness about the gender funding gap and advocating for initiatives that promote inclusivity within the Web3 ecosystem are crucial for long-term change.
By working together, investors, entrepreneurs, and the broader community can create a more equitable and inclusive Web3 landscape. It will ensure innovative ideas, regardless of who brings them to life, have the opportunity to flourish and contribute to a thriving future.--TradeArabia News Service
