Financing Women in SaaS: The 2024 Funding Report
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TIMIA Capital's research study exploring investment trends and strategies for female founders.
The financial landscape for female founders in the SaaS industry remains challenging despite their proven efficiency and better returns. Our 2024 study highlights these issues, focusing on women-led SaaS startups and their complex relationship with venture capital and debt.
Disparity in Venture Capital
While women run 42% of U.S. businesses, they received only 2% of all venture capital in 2023. This funding gap is stark, with female founders being 63% less likely than their male counterparts to secure venture capital, often receiving about $1 million less in funding. This discrepancy is partly due to the underrepresentation of women in venture capital decision-making roles, with only 13% in the US and 19.4% in Canada holding these positions.
Preferences and Perceptions
Our study surveyed numerous female entrepreneurs, revealing a strong preference for maintaining control over their companies. Over 78% of respondents expressed concerns about dilution of ownership, and less than half preferred venture capital over debt. Many see debt as a less costly form of capital despite concerns about interest rates and accruing debt.
The study suggests a lack of awareness and utilization of debt as a growth capital option among female founders, signaling a missed opportunity for more sustainable and inclusive funding.
Conclusion
The 2024 Funding Report by TIMIA Capital sheds light on the critical funding challenges faced by female SaaS founders. By promoting better access to debt financing and addressing systemic biases, TIMIA aims to level the playing field and support the growth of women-led businesses in the tech sector. For female entrepreneurs seeking growth without diluting their ownership, debt financing may be the key to unlocking their company’s potential.
Female founders interested in exploring debt options can contact TIMIA for a free, metrics-based assessment of their business to better understand the benefits of this funding mechanism.
Download the full report here.
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