Bitget Report – Female-Led Blockchain Startups Receive Only Six Percent of Overall Funding

January 11, 2024 – Victoria, Seychelles

Bitget, the world’s leading cryptocurrency exchange and Web 3.0 company, has released a study analyzing the latest trends in the blockchain startup funding landscape and their influence on gender-based disparity in investment patterns.

The study encompassed two years and relied on both qualitative and quantitative data to give a clear overview of the gap in funding received by male and female-led startups.

The purpose of this research was to highlight existing issues with gender inequality in the industry and give insights into its potential solutions.

Key takeaways

• Overall, fundraising by blockchain startups fell by 70.1% per quarter between Q1 2022 and Q3 2023.
• During the study period, blockchain startups raised $27.9 billion, with female-led blockchain startups securing only 6.3% of the overall funding.
• The number of female-led blockchain startups has fallen by 45.2% since the beginning of 2022 but is already showing a recovery.
• The share of female-led startups has seen a slight increase from 8.3% in 2022 to 8.6% by Q3 of 2023.
• Female-led blockchain project funding is more sensitive to negative changes but less sensitive to bullish trends.
• There is a strong need for incubators capable of nurturing female-founded startups and fostering a more inclusive and encouraging environment for their development.

The report delved into the key reasons for the ongoing disparity, identifying that female-led blockchain startup funding is influenced by general trends in investing in startups, the overall crypto market situation, investor sentiment and investor bias.

The latter factor is construed as the result of over 90.0% of the funding going to male-led projects.

The Bitget team based their research approach on the period from 2022 to the first three quarters of 2023 to receive up-to-date insights into the current market’s principles of evaluation and gain insights into potential trends.

Among the trends most affecting funding availability is the prevalent bearish sentiment, which has seen the number of deals drop by 61.6% in 2022, resulting in smaller investment volumes, with the lowest recorded figure being $2.0 billion, constituting 29.1% of the peak seen in early 2022.

Gender bias has been proven to have a determining effect on investments, as the statistics indicate that male-led startups attracted $27.9 billion, while female-led blockchain startups raised $1.8 billion – or only 6.3% of the…