A recent whitepaper from AC Ventures, Boston Consulting Group (BCG), and Stellar Women highlights significant challenges faced by female entrepreneurs in securing venture capital funding. The study, titled “Closing the Funding Gap for Women Entrepreneurs in Indonesia,” uncovers critical barriers that hinder women-led startups from thriving in the competitive funding landscape.

According to Carta’s Annual Equity Report 2023, only 2.8% of companies led by women have successfully obtained venture capital funding. The report identifies limited networking opportunities as a primary obstacle, which significantly reduces access to essential funding channels.

Another challenge is crafting investor-friendly pitch decks. Many women entrepreneurs lack tailored information about funding options, making it harder for them to align their business models with investor criteria. Bias in the investment landscape further exacerbate this issue, as noted by Samira Shihab, Principal at AC Ventures and Founder of Stellar Women. "Gender diversity is not just a value; it is a catalyst for economic and social progress," Shihab stated.

To bridge the funding gap, the whitepaper recommends three pivotal actions. First, governments and organizations must provide tailored mentorship and knowledge platforms for women entrepreneurs. Second, female business leaders should actively invest in self-development to address funding and operational challenges. Finally, entrepreneurs need to proactively seek funding solutions that match their business models.

The report also highlights Indonesia’s $1.7 trillion funding gap and stresses the role of women-led businesses in driving economic growth. Despite the hurdles, these businesses have demonstrated the potential to deliver superior results and significant contributions to the economy.

BISNIS