Only 7% of India’s Unicorn Founders are Women: Report
India’s startup ecosystem has witnessed tremendous growth in recent years, with over 120 unicorns (privately held companies valued at over $1 billion) emerging from the country. However, despite this progress, a recent report by Longhouse 2025 paints a stark picture of the leadership gap in India’s startup ecosystem. According to the report, only 7% of India’s unicorn founders are women. This alarming statistic highlights the need for immediate action to bridge the gap and create a more inclusive startup environment.
The report, which analyzed data from 2022, found that women-led startups in India are a rarity. In fact, out of the 120+ unicorns in India, only 8 were founded by women. This is a far cry from the ideal scenario where women and men have equal opportunities to start and grow successful startups. The report’s findings are a wake-up call for policymakers, investors, and the startup community as a whole.
The leadership gap in India’s startup ecosystem is not limited to the number of women founders. A significant number of women leaders are clustered in metros such as Bengaluru, Delhi, and Mumbai, while their male counterparts are more widely distributed across the country. This concentration of women leaders in metros creates a few challenges, including limited access to funding, networks, and talent.
The bias against women founders is another significant barrier to their success. Investors often have unconscious biases that can affect their decision-making, leading to fewer investments in women-led startups. This bias can manifest in various ways, such as a lack of confidence in women founders, a preference for more experienced male founders, or a belief that women are not as capable of leading successful startups.
The impact of these biases can be devastating for women founders. According to a report by the Kauffman Foundation, women-led startups receive only 2% of venture capital funding, despite accounting for 40% of all startups. This lack of funding can make it difficult for women founders to scale their businesses and achieve success.
The need for systemic change is urgent. As Vaishali Shah, a successful entrepreneur and investor, notes, “Ideas have no gender, but the receiver does.” This quote highlights the importance of creating a more inclusive startup environment where women and men have equal opportunities to succeed.
To bridge the leadership gap and create a more inclusive startup ecosystem, several steps can be taken. Firstly, investors need to be more conscious of their biases and make a conscious effort to invest in women-led startups. This can be achieved by creating a more diverse investment team, conducting unconscious bias training, and setting targets for investing in women-led startups.
Secondly, policymakers can play a crucial role in creating a more inclusive startup environment. This can be achieved by introducing policies that address the specific challenges facing women founders, such as bias and limited access to funding. For example, policymakers can introduce tax incentives for investors who invest in women-led startups or create programs to provide mentorship and training to women founders.
Thirdly, the startup community can play a crucial role in creating a more inclusive environment. This can be achieved by creating programs that provide mentorship and training to women founders, hosting events that showcase the success of women-led startups, and promoting the work of women founders through social media and other channels.
In conclusion, the report by Longhouse 2025 highlights the urgent need for systemic change in India’s startup ecosystem. With only 7% of unicorn founders being women, it is clear that more needs to be done to bridge the leadership gap and create a more inclusive startup environment. By taking concrete steps to address the challenges facing women founders, we can create a more diverse and successful startup ecosystem that benefits everyone.
Source: https://ascendants.in/industry_events/women-founders-india-7-lead-startups/
