The Truth of Female Founders in a Male-Dominated Startup World

Anna Apostol, co-founder of Mate academy, an online coding boot camp.

Too emotional, often irrational, dependent, and potentially pregnant — this is how female entrepreneurs can still be perceived in the business community. Even when these stereotypes aren’t vocalized, they can make it harder for women to succeed in the startup world.

“When my husband told his friend that I worked with him at a startup, he replied that he also had found a ‘warm place’ for a wife in his own company. But the thing is, no one had put me in a startup — I co-founded it,” says Anna Apostol, co-founder of Mate academy, an online coding boot camp.

Anna’s story isn’t unique: Gender parity in the startup world remains a critical issue. Discrimination, societal expectations, stereotypes, and unequal access to funding are among the key reasons why entrepreneurship is still considered to be a male-dominated field.

Only 14% of the world’s startups are solo-female founded; 20% are co-founded by women.

Overcoming gender bias in fundraising

Despite the growing global trend towards gender equality, there remains a substantial gap between men and women when it comes to attracting capital for their businesses. According to TechCrunch, women-founded startups raised only 1.9% of all VC funds in 2022.

In trying to balance the scales, some VC funds, including Graham & Walker, AmplifyHer Ventures, and The Artemis fund, invest solely in startups led by women. But it’s a drop in the ocean.

About 35% of female founders still face gender bias when raising capital and, in similar situations, receive an average of 5% less funding than their male counterparts. Female founders are frequently perceived as being inherently riskier to invest in than men. As a result, their companies are often undervalued.

When it comes to funding, the situation is better in mixed-gender startups — last year, they raised 17.2% of all VC investments. This significant gap seems to confirm the unconscious bias against women entrepreneurs, perceiving them as less competent, less goal-oriented, and less likely to succeed.

At the same time, gender-mixed teams outperform all-male founding teams by 63%.

“When we were raising our first round, [co-founder] Roman Apostol negotiated with the investors for the most part. He had worked at Google, which, of course, also affected this decision,” says Anna Apostol.

“As Roman was more public, people thought he was the only one involved in the startup. We realized that such perception was a result of stereotypes in society. Moreover, in reality, we shared responsibilities and I had my own area. But this was the impetus for us to work on popularizing the message that gender does not matter in Tech,” she adds.

Escaping stereotypes

One of the main myths about women in business is that they're more emotional, which prevents them from making rational decisions. However, a 2021 study argued that women and men are equally emotional by nature.

Even if some women are more likely to express their feelings openly, it doesn't automatically mean that they are chaotic in decision-making.

Instead, companies with executive teams in the top quartile for gender diversity were 25% more likely to achieve above-average profitability compared to those in the bottom quartile. Similarly, companies with over 30% of female executives were more likely to outperform those with fewer women on their staff.

“When communicating with new hire candidates, I am quite open and welcoming. That’s why it seems that I have low expectations and that I’m not that strict,” says Sofia Vyshnevska, co-founder at NewHomesMate.

“Imagine their surprise after they had worked with me and realized that the situation was totally different. Inside our operations, I am considered the ‘bad cop,’ being very demanding, while [another co-founder] Dan is the ‘good cop.’”

Juggling startup and household chores

Women often have to balance not just work and hobbies, travel, and leisure — they also do most of the housework.

Women spend 55% of their time taking care of children, cleaning up, and doing other household work, according to the Global Gender Gap Report by the World Economic Forum. When creating a startup or building a career, these chores aren’t disappearing completely from their lives.

At the same time, even with these additional responsibilities, a study shows women are more productive at work than men.

Nevertheless, society still does not believe in the superpower of women being able to grow a business, build a career, and take care of a child. There is even the term so-called Motherhood Penalty — when women’s pay decreases once they become mothers.

Studies have shown that women with children are often paid less than their male or childless female counterparts, even when controlling for factors such as experience and education. They may also face greater difficulty in getting hired or promoted and may be seen as less committed to their jobs.

Vyshnevska appreciates this time-management skill in other women she hires, helping them overcome this phenomenon.

“I gave birth at 18. Since then, I know firsthand the difficulties women with children face in building a career or a startup,” says Vyshnevska.

“But I also know how disciplined mothers are at managing their time. So when we interview female candidates with children, I initially have a friendly attitude towards them, without any prejudice,” she says.

Caring for company culture, diversity

Female leaders pay more attention to workplace culture, which benefits their employees, according to a Forbes column by career and life coach Caroline Castrillon. Women may be more likely to promote a collaborative and inclusive environment where employees feel valued and supported, she writes.

Several studies Castrillon mentions in the story found that female founders prioritize work-life balance and employee well-being, recognizing the importance of maintaining a healthy and sustainable work environment.

The experience Apostol had at Mate academy seems to prove this. “While our startup team was under a hundred employees, we didn’t have an HR specialist. So I did his job, and I liked it,” she says. “I believe empathy inherent in women helps us create a healthy atmosphere in the team.”