Women founders secure 25% less than men at exit, Evelyn Partners reveals

"Women entrepreneurs are achieving 25 per cent lower valuations than their male peers when exiting their businesses, according to new research unveiled by Evelyn Partners at its No Diversity, No Deal event in Glasgow. The preliminary findings, drawn from Evelyn Partners' upcoming Next Exit report, reveal that male business owners secured an average of £5.2 million at exit compared to £3.9 million for female founders. The report will be published in full in October."

"This seems indicative of structural barriers, such as access to funding in order to scale, and negotiation bias when it comes to an exit. Securing funding is no easy task for all entrepreneurs, but especially for female founders. Less than 2% of venture capital funding, and only 3% of equity capital overall in the UK, goes to women-led businesses. These are headwinds that leave female entrepreneurs with lower returns from their hard graft in building businesses."

Male business owners secured an average of £5.2 million at exit, while female founders secured an average of £3.9 million, representing a 25% valuation gap. Less than 2% of venture capital funding and only 3% of overall equity capital in the UK goes to women-led businesses. Sixty-five percent of female founders report high stress during the exit process compared with 47% of men, and women are 15% less likely to be satisfied after sale. Structural barriers such as limited funding access and negotiation bias contribute to lower returns for female entrepreneurs, with challenges extending beyond early funding.

Read at Business Matters