Women-founded AI companies raise six times less capital than all-male teams


  • Gender gap in AI investment: Women-founded AI companies secure only a fraction of funding compared to all-male teams.
  • Historical underfunding: 80% of AI venture capital investments from 2012 to 2022 came from all-male teams.
  • Gender investment gap: The average capital raised by women-founded AI firms is six times lower than all-male founder teams.
  • Ethical concerns: Unequal funding may perpetuate biases in AI-powered tools and software.
  • Optimism: Recommendations include establishing incentives for gender diversity and fostering inclusive company cultures.
  • Investment surge: OpenAI’s value skyrockets, reaching $80 billion.
  • Broader disparities: Fewer young women possess essential AI programming skills, and only one in four AI researchers worldwide is a woman.
  • Addressing disparities: VC firms should reevaluate recruitment practices and barriers for women entrepreneurs must be broken down.

Main AI News:

In the world of artificial intelligence (AI) investment, a troubling disparity has emerged. Recent data reveals that women-founded AI companies struggle to secure the capital they need to thrive, with their average funding lagging six times behind that of their all-male counterparts. This stark inequity not only underscores long-standing issues within the tech industry but also poses risks for the development of AI-powered tools and software.

Historical underfunding persists in AI

The tech industry has grappled with gender disparities for years, and the realm of AI is no exception. A decade-long analysis from 2012 to 2022 exposes a disheartening reality: 80% of total AI venture capital investments came from all-male teams. In contrast, all-female teams in the UK managed to secure a mere 0.3% of AI investment, as reported by the Alan Turing Institute.

Furthermore, the gender investment gap becomes evident when examining the average capital raised by women-founded AI companies compared to all-male founder teams. Dr. Erin Young, a prominent voice in this discussion, points out that this discrepancy is even more pronounced in AI than across all sectors.

Dr. Young emphasizes the potential consequences of this unequal funding, particularly in the context of AI technology’s rapid advancement. Those who provide financial support for AI projects inevitably bring their own perspectives and values to the table, influencing the design and implementation of AI systems. This can perpetuate biases within AI-powered tools and software, posing serious ethical and practical concerns.

A glimmer of hope on the horizon

While the AI investment landscape remains skewed, there is reason for optimism. The Alan Turing Institute has put forth several recommendations aimed at achieving gender balance in AI investment. Key among these is the proposal to establish incentives and targets for recruiting, upskilling, retaining, and promoting women in the AI sector, making inclusion a critical performance metric.

Additionally, fostering an inclusive company culture within AI workplaces is another pivotal recommendation. By creating environments where diversity and gender equality are valued, organizations can pave the way for greater female participation and leadership in the AI field.

Investment surge in AI-related companies

As interest in AI continues to surge, heavy investments are pouring into related companies. Notably, OpenAI’s value has skyrocketed, rising from over $11 billion to a staggering $80 billion, according to the Wall Street Journal.

Gender disparities persist beyond funding

The gender gap in AI extends beyond funding and investment. OECD data reveals that more than twice as many young men aged 16-24 possess essential programming skills for AI development compared to their female counterparts. Additionally, women remain underrepresented in the academic field of AI research and development, with only one in four researchers publishing on AI worldwide being a woman.

Addressing gender disparities in VC funding

To tackle these disparities, Dr. Young suggests that venture capital firms must reevaluate their recruitment and promotion practices. This includes providing equal opportunities for women and underrepresented groups in leadership and decision-making roles, as well as seeking talent beyond traditional recruiting channels.

Breaking down barriers for women entrepreneurs

The underfunding of women-led startups extends beyond the tech sector. Initiatives like the European Commission and the European Investment Bank have investigated why women entrepreneurs face challenges in securing funding. Factors include unconscious biases that question women’s competence, limited access to networks and mentors, and an underrepresentation of women in highly technical fields like deep tech.

The lack of female role models in venture capital and angel investing further hinders women entrepreneurs from breaking into the funding ecosystem. Encouraging more women to pursue STEM fields and implementing mentorship and networking programs like Women in AI and Women in Tech can play vital roles in connecting female entrepreneurs with investors and key players in the startup world.


Addressing gender disparities in AI investment is essential for a market that increasingly relies on AI technology. Achieving diversity and inclusion in this sector will not only promote equity but also ensure the responsible development of AI, avoiding biases that could undermine its societal impact and business potential.