Women Entrepreneurs Face Funding Bias in SA’s Startup Scene

As Women’s Month gains momentum, the focus turns to women-led startups and the persistent challenges they face in access to funding, markets and meaningful ecosystem support. At a recent event co-hosted by the Mineworkers Investment Company (MIC) and Grindstone Ventures, the discussion centred on the unconscious biases that continue to hinder women entrepreneurs in their pursuit of venture capital (VC) funding. 

Unconscious Bias Limits Access to Capital

While often perceived as a local issue, the struggle for funding is a global one. The World Economic Forum reported in 2023 that the total finance gap for women entrepreneurs was estimated at $1.7 trillion globally.

Speaking at the event, MIC Acting CEO Cynthia Pongweni highlighted the stark disparity in funding allocation between male- and female-led ventures.  

“If we fund you $1, you’ll find a male-led business has been funded with $25,” Pongweni said. It’s a significant gap across the African continent. South Africa might be slightly better, but not by much. We shouldn’t underestimate the impact of unconscious bias on funding for women-led businesses.” 

This sentiment was echoed across the panel, which discussed how women entrepreneurs face systemic exclusion, often not overtly, but through ingrained perceptions that affect how funding decisions are made. 

Thandiwe Maqetuka, CEO of Grindstone Ventures, noted the visible gender imbalance in the VC ecosystem. 

“We go to these panel discussions, and we look around the room, it’s predominantly male. We ask ourselves: how do we get more women around the table?” Maqetuka said. “That’s the issue we have – there’s no visibility for women.”

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Women Are More Prepared Than Investors Think

One recurring question that surfaced during the discussion was whether women are adequately prepared for funding. Despite often building successful businesses, many female founders still find themselves overlooked by investors. 

Pongweni challenged the assumption that women are underprepared. In her experience she said, women are often more thorough and ready for investment than their male counterparts. 

“That’s the reality we face daily as women in this environment,” she said. “But despite this, we continue to see women’s perseverance. They are launching businesses in male-dominated sectors. That’s why it’s important to increase support specifically for female-owned businesses.”