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Read Full Report from PwC / CB Insights

Two weeks ago, we highlighted Pitchbook data showing quarterly VC funding for female founders had dropped to three-year low in Q3 2020. Despite this contraction in funding for women-led startups, Q3 funding to US-based, VC-backed companies is the second strongest quarter ever.

VC investments to US-based companies hit a 7-quarter high at $36.5B, up 22% year-over-year and 30% from Q2’20. Other trends in the data include:

–Deal activity remained largely the same from Q2 to Q3, although Q3 deals are still down 11% year-over-year amid the COVID-19 pandemic.
–Mega-rounds accounted for 54% of total funding, with 88 companies raising $100M or more in the US. Seed deals also rose for the second consecutive quarter.
–In terms of industry trends, four emerging areas attracted the majority of deal activity – Digital Health, Fintech, Artificial Intelligence, and Medical Devices.
–Colorado accounted for $250M of investment across 41 deals in Q3.


Interested in helping strengthen Colorado’s startup ecosystem in Q4? There are plenty of opportunities to get involved with RVC. Learn about industry trends in pandemic technology at the RVC Community Webinar: Industry Spotlight – Pandemic Tech on November 6. Use your expertise to mentor a company at the upcoming Pandemic Tech HyperAccelerator, happening November 9-14. Or, join us at Reversing the Trend: Funding Female Founders on November 19 to catalyze investment in women founders. We hope to see you at an upcoming event soon!

Read Full Report on Pitchbook

In a new report focused female-founded ventures, Pitchbook has identified a concerning downward trend in VC funding for women-led companies. Their data reflects a decline in both deals and capital invested, with firms investing a total of $434 million in Q3—the lowest figure since the second quarter of 2017. Q3 2020 also reflects a 48% drop in funding from Q2, when female founders received $841 million across 132 deals.

Why is this happening? The report brings forth a few hypotheses: venture capitalists’ unwillingness to adopt new processes related to deal flow; additional caretaking and remote-schooling responsibilities that disproportionately burden mothers; economic uncertainty discouraging risk-taking; and the trend toward follow-on vs new investments in the downturn. 

While RVC’s angel investment portfolio has maintained close to 50% investment in companies founded or led by women, the contracting venture capital ecosystem represents an increased need to mobilize female founders and investors. RVC and the Women’s Investor Network are bringing together women founders, funders, and allies for an evening of community-building and angel investing at Reversing the Trend: Funding Female Founders on Thursday, November 19 from 3-6pm MT. 

At this event, investors and community supporters can learn and discuss with industry experts, hear pitches from women seeking capital, network with founders and funders, and start the RVC angel investment process, all in a virtual setting.