Bitget Report: Female-Led Blockchain Startups Receive Only 6% of Overall Funding
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Victoria, Seychelles, January 11th, 2024, Chainwire
Bitget, the world’s leading cryptocurrency exchange and Web3 company, has released a study analyzing the latest trends in the blockchain startup funding landscape and their influence on gender-based disparities 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 potential solutions.
- Overall, fundraising by blockchain startups fell by 70.1% per quarter between Q1 2022 and Q3 2023.
- During the study period, blockchain startups raised $27.85 billion, with female-led blockchain startups securing only 6.34% 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% in 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% of 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 $1.97 billion, constituting 29.1% of the peak seen in early 2022.
Gender bias has been proven to have a determining effect on investments, as statistics indicate that male-led startups attracted $27.85 billion, while female-led blockchain startups raised $1.77 billion, or only 6.34% of the overall amount. The share of female-led startups has, however, seen a small increase from 8.3% in 2022 to 8.6% by Q3 of 2023.
The study conducted by Bitget shows a clear correlation between founder gender and investment volumes, raising questions regarding the predominance of bias in the crypto industry. Considering the inclusive and global nature of the blockchain-based economy, having gender bias play a determining role in limiting engagement and opportunities is an unacceptable phenomenon that has to be addressed.
Gracy Chen, the Managing Director of Bitget, commented on the report:
“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. Our commitment remains resolute in fostering an inclusive environment, where everyone, regardless of gender, enjoys equal opportunities within this transformative sector.”
The report also sheds light on some important dynamics in the industry, underscoring the impact of investor sentiment on startup potential and viability based on the gender of the founder under the influence of market conditions.
Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 20 million users in 100+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, swap, NFT Marketplace, DApp browser, and more. Bitget inspires individuals to embrace crypto through collaborations with credible partners, including legendary Argentinian footballer Lionel Messi and official eSports events organizer PGL.