Empowering women entrepreneurs: access to funding and capital challenges

In the bustling startup corridors of India, women are building game-changing ventures — from agritech in rural Maharashtra to AI-driven solutions in Bengaluru. Yet, despite the innovation and resilience, one challenge remains stubbornly persistent: access to funding.

This isn’t just anecdotal. According to a 2023 Bain & Company and Google report, women-founded startups in India received only 2.3% of total VC funding. Even globally, less than 3% of all venture capital dollars go to companies founded solely by women. This isn’t a gap — it’s a canyon.

Having worked closely with women-led startups over the past few years — as a mentor, advisor, and fellow entrepreneur — I have seen how this challenge plays out, and more importantly, how it can be addressed.

The silent struggles behind the pitch room

Many first-time women entrepreneurs face scepticism the moment they walk into the room. They’re often asked:

●    “Is this your side hustle?”

●    “Who manages the finances?”

●    “Will you be able to dedicate time if you start a family?”

These questions aren’t just biased — they are limiting. In my experience mentoring early-stage founders, I’ve noticed how women are expected to be cautious, while men are encouraged to be bold. The perception of risk seems to change with gender, even when the numbers don’t.

In one accelerator I was part of, a woman-led startup with traction, revenue, and clear scalability was passed over in favour of a male-led team still in the idea stage. The reason? “He seemed more confident.” Confidence, it turns out, is often mistaken for capability — and that subtle shift affects who gets funded.

Lack of networks = lack of access

Beyond investor rooms, the lack of access to informal funding networks is another hurdle. A large chunk of early funding happens through warm introductions — networks built over years of industry experience or privilege. Women, especially those from Tier 2/3 cities or non-metro backgrounds, often don’t have these networks.

Moreover, many women entrepreneurs are first-generation business owners. They are not just navigating business plans and customer acquisition — they’re decoding how capital even works. How to build a pitch deck, approach investors, or negotiate terms — these are skills often assumed to be "basic", but rarely taught.

Positive shifts: what’s changing on the ground

Thankfully, the tide is turning — slowly but steadily.

Several encouraging developments include:

●    Women-focused VC funds like She Capital, Arise, and Womencorp are putting gender at the center of their investment thesis.

●    Government initiatives like Stand-Up India and Mudra Yojana have enabled women entrepreneurs to access collateral-free loans and mentorship.

●    Fintech lending platforms such as Kinara Capital and Avanti Finance are using data to evaluate women’s creditworthiness beyond traditional metrics.

●    Platforms like Leap.club, Aspire for Her, and WEP (Women Entrepreneurship Platform) are creating safe spaces for women to network, learn, and pitch.

These are not just support systems — they’re launchpads.

Real action: what needs to happen next

But for the ecosystem to truly evolve, a few focused actions are needed:

Investor sensitisation: VC firms need to undergo unconscious bias training. An inclusive lens is not just ethical — it’s good business.

Mentorship beyond events: Women don’t need another panel discussion. They need real mentors who open doors — to capital, customers, and courage.

Financial literacy and legal support: Programs should focus on simplifying equity structures, term sheets, and fundraising strategies for non-MBA founders.

More women writing cheques: Women-led angel groups are rising, but they need to be amplified. When capital is distributed by a more diverse pool, outcomes shift.

Empowering women entrepreneurs isn’t just a diversity mandate — it’s an economic imperative. A McKinsey Global Institute study estimates that India could add $770 billion to its GDP by 2025 by advancing gender equality. That’s not a footnote, that’s a future.

Funding is more than money, it’s validation. And when women consistently receive less of it, we send the message that their ideas, dreams, and hustle matter less. It’s time we reverse that.

Because when women rise, economies rise. And when they are funded — fairly, fully, and fearlessly — they don’t just build businesses; they build ecosystems.

(Dario Schiraldi is a seasoned global banking leader with over 25 years of experience across investment banking, private banking, and digital financial services. He previously served as the Managing Director and Global Head of Retail Products at Deutsche Bank.)

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)