In recent years, female-led start-ups have faced a growing challenge in securing necessary funding. Despite the increasing recognition of gender equality and diversity in the business world, many women entrepreneurs find themselves on the outside looking in when it comes to financial backing. Recent data highlights a troubling trend: funding for female-led start-ups has not kept pace with their male counterparts.
Investors continue to overwhelmingly favor male-led ventures, which exacerbates the gender funding gap. This disparity arises from a combination of factors including inherent biases, limited access to networks traditionally dominated by men, and a lack of representation among venture capital decision-makers. Women entrepreneurs often pitch to predominantly male investors, who may have unconscious biases that influence their funding decisions.
Efforts to address this imbalance have gained traction. Initiatives and funds dedicated to supporting female entrepreneurs are emerging, and some venture capital firms are actively working to diversify their portfolios by including more female-led ventures. However, significant work remains to be done to level the playing field fully.
To foster a more inclusive entrepreneurial ecosystem, experts suggest a multifaceted approach: increasing mentorship opportunities for women, promoting greater diversity among investors, and raising awareness of the unconscious biases that exist within the investment community. The economic impact of supporting female entrepreneurs cannot be overstated. Research consistently shows that women-led businesses not only drive innovation but also contribute to robust economic growth and job creation.
The pressing need for equal funding opportunities is clear, and continued efforts are essential to ensuring that female entrepreneurs receive the support necessary to thrive in the competitive start-up landscape. India, home to over 7,000 active women-led startups, has ranked second after the United States in terms of all-time funding raised by companies with female founders. According to a recent Tracxn report, these startups have collectively mobilized $26 billion to date.
This achievement highlights the growing impact and influence of women entrepreneurs in India’s startup ecosystem. The substantial funding indicates investor confidence and support for women-led initiatives, driving innovation and economic growth in the country. Female founders often face higher standards, needing to demonstrate stronger metrics and resilience.
However, those who break through often build more sustainable businesses due to their ability to overcome challenges. Persistence and finding investors who support long-term impact, regardless of biases, are key to success, says Anuya Nisal, Founder & CEO of Serigen Mediproducts. Serigen Mediproducts, a Pune-based biomedical products company, secured a pre-Series A funding round of Rs 10 crore (approximately $1.2 million) led by IAN Alpha Fund and Colossa Ventures in August last year.
“Things have improved for women founders compared to five years ago. There’s more conversation against gender bias, and investors actively look to back women-led startups. We’re seeing more mentorship programs and funds dedicated to supporting women entrepreneurs, which is a positive change.
But challenges remain. Biases haven’t disappeared—they’ve just become more subtle,” Nisal said. Interestingly, we are now at a point where being a woman-led startup has sometimes become an advantage.
Investors recognize the need for diversity in leadership and actively seek to back women-led ventures, which is a positive shift,” she added. The vision of Serigen Mediproducts was born from a passion for science and the realization that innovation in biomaterials could transform healthcare. During her PhD at IIT Bombay and research work at CSIR-NCL, Nisal discovered the potential of silk’s biocompatibility and biodegradability for tissue regeneration.
Despite India being a leading silk producer, its potential in medical applications was untapped. Existing options for patients with complex wounds and bone trauma were either expensive or suboptimal.
Persistent funding gap for female founders
By leveraging India’s sericulture industry and cutting-edge biomaterial research, Nisal, along with co-founders Dr. Swati Shukla and Dr. Premnath Venugopalan, created silk-based tissue engineering products that are high-performing and affordable.
The mission was clear: to make advanced healthcare accessible and improve patient outcomes. Building a deep-tech biomedical company is inherently difficult, regardless of gender. While Nisal faced instances of gender bias and stereotyping, these were not the primary obstacles.
Fundraising was the biggest challenge due to the long gestation period in medtech requiring long-term investment, while many investors prefer quicker returns. Grants from prestigious institutions like BIRAC helped get started. Balancing multiple roles—R&D, regulatory approvals, and business strategy—was challenging but taught resilience.
Today, Serigen’s success in silk-based tissue engineering is breaking stereotypes and setting new standards in medtech. Raising capital for a deep-tech startup was challenging due to the need for time, clinical validation, and regulatory approvals. Convincing investors about the commercial potential of silk-based biomaterials was tough, as tissue engineering is a niche market in India.
Serigen bridged this gap by educating stakeholders about their technology’s disruptive potential and global scalability, backed by rigorous scientific validation, international patents, and clinical trials. Recognition from industry awards and strategic partnerships helped investors see the impact, leading to funding from renowned institutional investors like IAN Alpha Fund and Colossa Ventures, which enabled them to accelerate clinical trials, grow their team, and scale marketing efforts. Nisal reflects that the startup ecosystem has historically been male-dominated.
However, deep-tech investors are now more open to women-led ventures. At Serigen, the focus was on the science and clinical data, showcasing the disruptive technology and its potential to transform patient outcomes globally. Having male co-founders brought a diversity of thought and expertise to leadership, resonating well with investors.
In the current challenging funding environment, female founders need to show stronger metrics and resilience, but those who succeed build more sustainable businesses. Nisal encountered gender-based biases, especially in how her expertise was questioned more than her male peers. She addressed this by letting results speak for themselves, focusing on presenting strong data, clinical success, and international patents.
It’s about shifting the conversation from gender to capability and staying focused on the mission. Things have improved for women founders compared to five years ago, with more conversations against gender bias and more investors looking to support women-led startups. However, challenges remain, and biases have become more subtle.
Progress is real but there’s still a long way to go. Key learning moments included underestimating the time needed to bring a medtech product to market, highlighting the importance of patience and a solid runway. Building the right team, focusing not just on technical skills but also on cultural fit and shared vision, made all the difference.
Women bring unique qualities to leadership, such as empathy and active listening, which help build strong, cohesive teams and foster a culture of collaboration. In high-stakes industries like medtech, this creates an environment where people feel valued and motivated to innovate. Women leaders often take a holistic approach to problem-solving, leading to balanced and effective decisions, leveraging these strengths to create impact.
Balancing personal life and the demands of being a founder is challenging but crucial. Having a robust support system is essential in maintaining this balance while driving the company’s mission forward.
