William & Mary Business Law Review
Abstract
Gender inequality is a pervasive issue in venture capital financing, with studies consistently revealing the severe disadvantage female entrepreneurs face when raising private funds for their companies. Research has shown that female founders receive only a fraction of the total venture capital dollars invested each year, despite launching companies that outperform those founded by men. Gender bias among investors, a lack of diversity in decision-making teams, and regulatory inaction are major contributors to this inequality. The consequences of gender inequality in venture capital financing extend beyond the financial impact; such inequalities perpetuate systemic gender stereotypes and impede the full realization of female-founded startups. Federal regulatory action is required to resolve such inequities because federal agencies have the congressional authority, should enjoy judicial deference, and bring the subject matter expertise to enact relevant measures.