In Search of Equity: Exploring Africa's Gender Gap in Startup Finance

This report presents a first diagnostic of Africa’s gender gap in financing early-stage ventures in the digital economy (start-ups). The report’s findings indicate that since 2013, only 3 percent of total funding for Africa’s tech start-ups went to all-female founding teams, compared with 76 percent of funding for all-male teams. The report’s analysis shows that female founders are underrepresented in the sectors that attract the most financing; however, even those all-female teams that are working in sectors with high investor interest remain less likely to receive financing than all-male teams, and they receive smaller amounts if they do. Male and female entrepreneurs in the report’s sample also followed different financing paths: female founders were less likely to pitch for equity investments; conversely, they were more likely to apply for bank loans, or to prefer growth from retained earnings.