Women founders in SE Asia struggle to scale in 2024 amid entrenched gender gap

Women founders in SE Asia struggle to scale in 2024 amid entrenched gender gap

The fundraising landscape for all-women-founded startups in Southeast Asia remains heavily constrained, with persisting gender disparities in capital allocation, especially at later stages. These teams continue to secure a disproportionately small share of venture funding, reinforcing deep-rooted biases in the ecosystem.

Companies with all-women founding teams secured 33 equity funding rounds in 2024, raising a total of $94.5 million. This accounted for 5.2% of total deal volume and just 2.1% of total capital raised for the year, according to DealStreetAsia’s Women Founders in SE Asia: 2024 Funding Review.

In contrast, all-male founding teams dominated the landscape, capturing 82% of the total deal value, while mixed-gender teams secured 12.1%. This brings the total share of startups with at least one female founder to just 14.1%. The remainder, or 3.9%, is attributed to entities classified as “other,” encompassing joint ventures, corporate subsidiaries, and startups with unidentified founders, typically those operating in the digital asset space.

A historical comparison presents a mixed picture, but the overarching theme of persistent funding disparity for women-founded startups remains unchanged. While total capital raised by all-women-founded teams increased by 51% from 2023, deal volume declined by 13% to 33 rounds, down from 38 in 2023 and even lower than 35 in 2022.

Source: DealStreetAsia – DATA VANTAGE

This trend is consistent across the board, as both mixed-gender and all-male teams also saw a 13% decline in deal volume. The sector-wide contraction underscores the continued impact of the funding winter, which has persisted since 2022.

Jessica Novia, co-founder and chief product officer at carbon offset solutions provider CarbonEthics, noted that despite evidence showing female-led startups often generate higher revenues per dollar invested, they continue to face biases, such as the perception that women are less aggressive in business.

“Research also indicates that women entrepreneurs often exhibit unique strengths, such as effective communication, creative innovation, and strong networking capabilities, that can lead to superior performance compared to male counterparts,” Novia said.

Mainstream vs outliers

The gender gap in startup funding looks even more pronounced in 2024 when analysing deal sizes. A simple median calculation of all equity funding in 2024 shows that all-women-founded startups raised just $1.5 million per deal, only 30% of the median for all-male-founded startups.

Mixed-gender teams fared slightly better, raising a median of $2.2 million, though disparities in deal volume and stage distribution continue to distort the funding landscape. Later-stage funding remains overwhelmingly concentrated in all-male-founded startups, further skewing median valuations.

From the perspective of investment stages, all-women-founded startups have persistently secured lower deal values, reinforcing entrenched biases in capital allocation. While mixed-gender teams have occasionally outperformed their all-male counterparts in late-stage rounds–most notably with Xendit’s $300-million Series D in 2022—these instances remain outliers.

Source: DealStreetAsia – DATA VANTAGE

“Our investor process was perhaps different from most companies as we are both profitable and have substantial growth. For this round, our greatest challenge was narrowing down which investors we wanted to work with,” said Hao Diep, co-founder and CEO of agritech startup TechCoop, which also defied market conditions to raise a $70-million Series A.

In the past two years, deal flow has been too limited to establish meaningful median calculations for late-stage funding, highlighting the ongoing challenges for women-led ventures. During this period, all-women-founded teams have secured no late-stage deals, while mixed-gender teams have also experienced a sharp correction.

This trend is likely to persist as liquidity constraints and operational challenges continue to weigh on the region’s venture landscape. With late-stage funding becoming increasingly scarce, women-led startups face heightened barriers to scaling, limiting their ability to compete in an already challenging investment environment.

Focus on consumer products

Consumer products, particularly health and beauty brands, have emerged as the top-funded sector among all-women-founded startups in 2024, according to the report. This marks the third consecutive year that the sector has led the pack, underscoring its alignment with female founders’ expertise, networks, and strong market demand.

Fintech and healthtech continue to be key sectors for all-women ventures, while agritech, healthcare, and HR tech have also gained traction, each securing three deals this year.

In contrast, all-male-founded startups maintained a stronghold in fintech and e-commerce, though 2024 saw a surge in investment into software and IT, particularly blockchain-driven solutions. The increasing appetite for blockchain-powered digital assets has played a key role in fintech’s resilience, positioning all-male-led startups at the forefront of financial innovation.

Additionally, male-founded startups are leading in deep tech and emerging industries, with strong momentum in AI, machine learning, and data analytics. The data also suggest that this cohort is driving Southeast Asia’s green tech transition, further solidifying their presence in sectors with high technological barriers to entry.

The data highlight some divergence in sectoral focus between female- and male-founded startups but also underscore significant overlap between the two cohorts, indicating that sectoral specialisation is being shaped as much by market opportunities as by gendered investment patterns.

Source: DealStreetAsia – DATA VANTAGE

Surviving new realities

Amid a tough fundraising climate, founders stressed the need for fiscal discipline, focusing on revenue-driving investments, automation, and cost efficiency. With investors prioritising profitability and unit economics, extending runway through cost efficiency and good cash flow management have become key strategies to ensure long-term viability

“The key is painful fiscal discipline. We prioritise investments that directly drive revenue and automate wherever possible to reduce operational costs. Our pricing model is structured with upfront customisation fees, ensuring a steady cash flow while delivering long-term value for clients,” said Tina Chopra, the co-founder and CEO of Addlly AI.

Chopra emphasised that government support can be instrumental in helping founders navigate challenging market conditions. She pointed to institutions such as Singapore’s IMDA and Enterprise Singapore, whose initiatives, such as the AI Sandbox and grants, have been crucial in enabling AI startups to secure enterprise adoption and convert users into paying subscribers.

Echoing similar sentiments, Meals in Minutes co-founder Khiara Mia highlighted the challenges of managing cash flow while driving growth in the F&B sector, particularly amid economic uncertainties. Rather than scaling too quickly, her team takes a measured approach, testing new markets and products with minimal risk before making significant commitments.

To further stabilise revenue, Mia said her company has also diversified from B2C to B2B, creating more consistent income streams and reducing reliance on fluctuating consumer demand.

Certain industries remain more male-dominated than others, compounding the challenges of an already difficult fundraising environment. This is particularly evident in logistics and supply chain solutions—the core focus of emerging regional powerhouse TransTRACK.

“The biggest lesson is adaptability. Economic shifts, regulatory changes, and evolving customer needs mean that agility is key. We’ve learned to diversify revenue streams, optimise costs without compromising growth, and stay closely connected to customer pain points,” said founder and CEO Anggia Meisesari.

Navigating these hurdles required persistence, allowing results to speak for themselves, and building a strong, capable team aligned with her vision, she added.

Edited by: Joymitra Rai

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