The Gender Gap in Venture Capital Funding
Research indicates that female-founded tech startups receive a disproportionately small share of venture capital (VC) funding. In 2023, startups founded solely by women secured just 2% of the total VC capital in the United States. This stark statistic highlights a persistent issue in the startup ecosystem, where female entrepreneurs often struggle to gain the financial backing necessary to scale their businesses.
Interestingly, startups with mixed-gender founding teams tend to attract more funding. Data shows that companies with at least one female founder accounted for 19% to 24% of funding rounds between 2016 and 2022. This suggests that diversity in leadership can positively influence funding opportunities, yet the challenge remains for women-led ventures to secure their fair share.
Challenges in Fintech for Female Founders
The fintech sector presents unique challenges for female founders seeking funding. A report by Anthemis highlights that women in this industry often struggle to raise capital across various startup stages. Despite these hurdles, some female-led fintech companies are making strides. One notable example is Open Payments, an open banking platform founded by Louise Brandt, which recently raised €3 million in funding.
This funding round was led by Swedish VC Alfvén & Didrikson, with participation from Industrifonden and other existing investors. The capital will support Open Payments’ growth, product development, and its mission to simplify and enhance B2B payments across Europe.
The Vision Behind Open Payments
Open Payments was founded in 2017 by Jonas Kjellin, Louise Brandt, and Per Westin to tackle the complexities and inefficiencies businesses face when integrating multiple banking services. Many companies struggle with errors, high costs, and time-consuming processes when managing their financial operations.
The platform combines Open Banking API connections with ISO-based payment integrations, allowing businesses to manage domestic and cross-border payments, account reconciliation, and cash management seamlessly. By embedding these functionalities into businesses’ ERP systems, Open Payments streamlines financial operations and enhances efficiency. Built on the principles of the PSD2 directive, the platform ensures compliance and security at every level.
Innovative Solutions for B2B Payments
Recently, Open Payments introduced new products that enhance its offerings. These include cross-border payment capabilities with lower exchange rates, real-time access to rates for streamlined bookkeeping, and same-day settlements embedded directly in financial systems.
Louise Brandt, the CEO and founder of Open Payments, emphasizes the platform’s mission: “We developed Open Payments to simplify banking integrations by aggregating multiple bank APIs into one single API. This approach enables businesses to innovate and improve their financial operations in ways that weren’t possible before.”
This innovative model not only sets Open Payments apart but also empowers customers to cut through complexity, save time, and focus on what matters most. With the recent funding, Brandt is excited to accelerate innovation and continue shaping the future of B2B payments.
A Trusted B2B Platform
Open Payments has quickly established itself as a leading open banking platform for B2B payments. In 2024, the company tripled its transaction volumes, doubled its revenue, and achieved full coverage of the Dutch B2B banking landscape, laying the groundwork for broader European expansion.
The platform is trusted by various ERP systems, treasury systems, and accounting providers, including Monitor ERP, Treasury Systems, Juni Technologies, Bjorn Lunden, and Speedledger. This trust underscores the platform’s reliability and effectiveness in addressing the needs of businesses in the B2B space.
The Path Forward for Female Entrepreneurs
European fintechs like Open Payments demonstrate that female entrepreneurs can succeed when given access to capital. The recent €3 million funding round illustrates how targeted support and investment can drive innovation and growth in female-led companies.
However, addressing structural barriers—such as limited networks and biases in the investment process—remains critical to creating a more inclusive startup ecosystem. As the landscape evolves, it is essential to continue advocating for equitable funding opportunities for all entrepreneurs, regardless of gender.