The American Banker, a highly regarded banking media property, recently covered the topic of funding for female fintech founders. The report was written by esteemed reporter, Penny Crossman and detailed the challenges and biases against female founders.

Key findings from the important story include:

“Despite the progress made by female leaders in the financial industry and the success of women in the workplace, female fintech founders continue to struggle in obtaining funding from venture capital firms. In fact, in 2021, companies founded solely by women received just 2.4% of the total capital invested in venture-backed startups in the United States, according to Pitchbook. The percentage is even lower in the fintech industry, with estimates ranging around 1%.”

The story noted several complex reasons for this lack of funding, including:

Investors may believe that male founders will bring a higher return on investment.

The venture capital industry has long been dominated by white men, with an estimated 95% of general partners making investment decisions being male. This leads to a network effect, where the deals are passed among a group of successful white men and women are left out.

Female founders also face a lack of awareness and the stereotype that they are not as confident or determined as their male counterparts. This is despite the fact that men and women may not necessarily differ in their abilities as founders.

The story is an important reminder to the fintech industry to address these issues and actively seek out and support female founders. This can be done through initiatives that increase visibility and provide opportunities for networking and relationship building. By doing so, we can help level the playing field and ensure that all founders, regardless of gender, have an equal chance at success.