Women-led startups captured less than 2% of global venture capital last year, receiving just ₹4 out of every ₹100 raised by Indian founders, according to Arise Ventures’ Diversity Report 2026. This persistent funding gap persists despite clear evidence that diverse founding teams generate 10% more revenue, deliver 20% higher net IRR to investors, and achieve 35% superior returns overall. In India, women-only teams garnered just 2.3% of funding compared to 23% for mixed-gender startups, mirroring US patterns where women-only teams receive about 1% versus 25% for mixed teams.
Healthcare Innovation Meets Chronic Underinvestment
The disparity becomes particularly stark in high-growth sectors where women founders lead innovation. Healthcare represents both massive consumer demand and chronic underinvestment—less than 2% of global R&D funding targets women’s health despite women making most healthcare decisions. Yet the femtech market approaches $100 billion by decade’s end, spanning fertility, maternal care, hormonal health, and menopause management. Climate technology and AI applications also see rising women-led momentum.
Arise Ventures Tackles Gap Through Ecosystem Building
Ankita Vashishtha, Founder & Managing Partner at Arise Ventures, frames the disconnect bluntly: “The funding gap for women founders is no longer a hidden issue. The data clearly shows women-led startups receive a disproportionately small share of venture capital despite consistently delivering strong financial returns and expanding into new markets. Closing this gap represents one of the largest untapped economic opportunities across healthcare, climate technology, AI, and consumer innovation.”
StrongHer Cohorts Drive Structural Change
Arise addresses this through StrongHer AWE, processing 300+ applications from women founders building AI, enterprise software, healthcare, and climate solutions. The accelerator supported 63 startups and engaged 25+ investors, while the Climate Change Innovators Cohort backed 15 ventures—half women-led. With 75% of Arise’s portfolio featuring women founders or co-founders, the firm demonstrates deliberate capital allocation creates both financial returns and structural change.
