For years, women entrepreneurs have been encouraged to be more confident, speak up, and take more risks. But what if confidence isn’t the real issue? The real challenge is access to capital.

Despite their proven ability to run successful businesses, women-led startups receive only 2% of total venture capital funding. However, research shows these businesses generate more than twice the revenue per dollar invested compared to male-led startups. Clearly, the problem isn’t a lack of skill or ambition—it’s systemic bias in funding.

Let’s break down some common myths about women entrepreneurs and uncover the reality behind the funding gap.

Myth #1: Women Entrepreneurs Lack Confidence in Pitching

Reality: Investor bias, not confidence, is the problem. Studies show that investors often ask men “promotion-focused” questions that emphasize growth, while women get “risk-focused” questions that assume potential failure. This difference in questioning affects funding outcomes more than confidence ever could.

Myth #2: Women Don’t Seek Out Investors

Reality: Women are actively pitching for funding, but male-dominated investment networks limit their access. Most venture capital firms are led by men, who, whether intentionally or not, tend to invest in founders who resemble them. This bias contributes to the funding disparity.

Myth #3: Women-Owned Businesses Are Less Profitable

Reality: Research shows that women-led businesses often deliver stronger returns. They generate higher revenues relative to the investment they receive, yet they still struggle to secure funding. The challenge isn’t business performance—it’s breaking through outdated perceptions.

Myth #4: Women Need More Training to Secure Investment

Reality: The issue isn’t a lack of training; it’s a lack of fair investment opportunities. Women entrepreneurs already have the expertise and business savvy to succeed. What’s missing is equal access to capital and a shift in how investors evaluate female-led businesses.

What Needs to Change?

The investment industry must address these biases and create a more inclusive funding landscape. Here’s how:

• Diversifying Investment Teams: More women in venture capital and decision-making roles can lead to more balanced funding distribution.
• Standardizing Investor Questions: Women founders should be asked the same forward-looking, growth-based questions as their male counterparts.
• Expanding Access to Capital: More women-focused investment funds, grants, and lending programs can bridge the funding gap.

Final Thoughts

Women entrepreneurs have already demonstrated their ability to succeed. The next step isn’t about building more confidence—it’s about dismantling barriers to funding. By shifting the conversation from confidence to capital, we can create an ecosystem where women-led businesses get the investment they need to scale and thrive.