Women-led GreenTech companies raise more funds than all-male founders
A report released today by the Female Founders Forum found that companies founded by women who innovate to achieve net zero now receive more funding than all-male “GreenTech” founding teams.
As COP26 approaches, technology companies are increasingly looking to mitigate environmental impacts.
According to report of Founders Forum, a partnership by The network of entrepreneurs and Barclays, the gender funding gap has closed in the thriving GreenTech industry in the UK, with £ 2.8bn in equity funding raised by women-led GreenTech companies since 2018.
Women-founded businesses in the GreenTech space represent 34% of companies in the industry, but raise 42% of all equity financing.
However, progress is still needed, as a funding gap persists across all equity-funded startups, with women-founded businesses raising only 15% of all equity funding – female founders of AI, for example. , receive only 2% of the funding.
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“Women start businesses with on average half the money than men because they are less likely to take out personal loans or use their savings,” said the author of the report. Aria babu, responsible for the Founders’ Forum.
“Equity financing is essential in high-tech industries where rapid growth is a priority and where the road to commercialization and profitability can be long. “
Catherine morgan, Head of High Growth and Entrepreneurs at Barclays, commented: “It’s inspiring to see women entrepreneurs leading the charge in GreenTech.
” In the perspective of COP26, innovations from these companies will be key to helping the UK achieve its goal of net zero by 2050.
“However, while this industry is setting the standard, overall progress is stalling – and we need investors to help women in all industries succeed.”
Women and Equality Select Committee Chair Caroline Nokes MP endorsed the research: “I support calls for a more diverse venture capital industry, to tackle the ‘leaky pipeline’ talent in STEM and suggest ways to make childcare more accessible to working mothers. .
“We can’t afford a cover designed by men for men. As this report indicates, we will all end up being poorer and less able to meet the challenges of the coming decades if women are prevented from starting businesses and reaching their full potential as entrepreneurs, scientists and inventors.
Greyparrot: a GreenTech case study
GreenTech company run by women Gray parrot is a company that has provided information to the study and seeks to change the way companies treat their waste.
Thanks to AI, the company is able to analyze, in real time, the types of waste circulating on conveyor belts in order to increase recycling rates.
To date, Greenparrot has raised £ 4.1million from investors and £ 500,000 from the government innovation agency, Innovate in the UK.
Co-founder and CEO of Greyparrot, Mikela druckman, stressed the importance of role models and peer support: “I was incredibly inspired by examples of women who have had to break down barriers in their field, and I knew I wanted to be able to do the same for her. next generation.
“When most of the people in the room are still men, it can create an imbalance. But being able to be connected with peers who are going through the same thing is incredibly beneficial for the entrepreneurial journey. “
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As the COP26 summit in Glasgow approaches, UK tech companies are increasingly finding ways to mitigate the impact on the environment – Technology country, for example, last month announced the acceptance of 32 climate technology companies into its Net Zero 2.0 program.
The full report of the Founders Forum, titled “Inspiring Innovation”, can be viewed here.