Female founders less likely to pitch for equity, report finds

Female founders in African technology firms are facing a significant funding gap, with only 3% of investment going to all-female founding teams, according to a new report by Briter Bridges and the World Bank's Africa Gender Innovation Lab. Dario Giuliani, the founder of Briter Bridges, discussed the key findings of the report in an interview with CNBC Africa. The report aims to shed light on the challenges faced by female entrepreneurs in accessing funding and to push for more support from policymakers and investors. Giuliani highlighted the key elements of the report, emphasizing the stark gender gap in funding for female-founded companies. He pointed out that the startup ecosystem has traditionally been dominated by men, with women facing barriers such as limited access to high-impact sectors like fintech. Despite efforts to promote STEM courses and digital literacy among women, the funding disparity remains a significant issue. The methodology used in the report included a combination of data analysis, qualitative research, and outreach to founders. By examining over 2,400 teams and surveying a thousand founders, the researchers aimed to provide a comprehensive view of the challenges and opportunities faced by female entrepreneurs in Africa. One of the key findings of the report was the lack of networks and contacts for female entrepreneurs compared to their male counterparts. While there has been a rise in women-focused funds across the continent, these initiatives are still in the early stages and more efforts are needed to integrate female entrepreneurs into the mainstream investment landscape. Giuliani acknowledged the importance of cultural shifts in the entrepreneurial ecosystem to address the perception of risk associated with female entrepreneurs. He noted that the issue of risk perception affects women globally and called for a change in mindset to support female-led businesses. Looking ahead, Giuliani highlighted trends to watch for in the near future, including increased aggregation among female founders, exits, and large fundraising rounds. He also pointed out the growing recognition among corporates of the importance of diversity in leadership and team composition. In conclusion, the report's findings underscore the urgent need to address the funding gap for female entrepreneurs in Africa and foster a more inclusive and supportive environment for women in the startup ecosystem. With concerted efforts from policymakers, investors, and the private sector, there is an opportunity to level the playing field and unlock the full potential of female founders in the region.