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In terms of investment, startups led entirely by women gained 0.04 percent of the total US$ 3.5 billion invested in the Brazilian startup industry in 2020. 68.2 percent of female founders polled did not seek funding, either because they still have their own resources or because they are unsure how to do so.
Fremont, CA: According to a new report, men lead the vast majority of technology startups in Brazil, and the number of female entrepreneurs has remained largely unchanged for the past ten years.
In 2020, businesses exclusively run by male entrepreneurs accounted for 90,2 percent of all Brazilian startups, up from 92,1 percent in 2011. Women-led 4,7 percent of all tech startups in Brazil in 2011; they accounted for 4,4 percent of all founders in 2011 when the Brazilian tech ecosystem was 18 percent smaller than it is now.
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Female Founders, a report released by open innovation firm Distrito in collaboration with global entrepreneurship network Endeavor and B2Mamy, an accelerator connecting companies led by mothers to the innovation ecosystem, summarised the findings.
In Brazil, women and men are equally represented in the founding teams of 3,5 percent of all startups (in 2020, that configuration accounted for 5,1 percent ). Female ownership of Brazilian startups is marginally higher than male ownership: 29.5 percent of shareholders are female. According to data from Distrito's data intelligence arm, the Brazilian startup ecosystem currently has around 13.000 businesses of various sizes.
According to the study, nearly 65 percent of tech companies in Brazil with female founders have emerged in the last five years. More than half of them are either in the product validation stage or are in the very early stages of business growth, with scaling the business being the primary challenge for 60 percent of the women who took part in the poll.
In terms of investment, startups led entirely by women gained 0.04 percent of the total US$ 3.5 billion invested in the Brazilian startup industry in 2020. 68.2 percent of female founders polled did not seek funding, either because they still have their own resources or because they are unsure how to do so. 36.2 percent of those who attempted to attract investors were unsuccessful and 72.4 percent said they were morally harassed during the process.
Access to capital was cited as one of the top challenges faced by female founders (38.8 percent ), followed by a lack of good ties (44.6 percent) with investors, mentors, and other entrepreneurs, and validation of the business model (44.6 percent). (56.4 percent ).
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