Addressing the Gender Funding Gap: Village Capital and Standard Chartered’s Initiative

In a significant move to tackle the gender funding gap in emerging markets, Village Capital has teamed up with Standard Chartered to invest $200,000 in three women-led startups across Africa and the MENA region. This initiative is part of Standard Chartered’s Futuremakers Women in Tech Financing Facility, aiming to empower women entrepreneurs by providing catalytic capital and support to scale their ventures.

Targeted Investment in Women-Led Startups

The selected startups—BeMe from Pakistan, Dabchy from Tunisia, and FreshSource from Egypt—are all alumni of Village Capital’s Women in Tech accelerator program. This program is specifically designed to address systemic challenges faced by women in entrepreneurship, such as limited access to early-stage capital and underrepresentation in key sectors.

Dabchy (Tunisia)

Dabchy is an innovative online marketplace for second-hand fashion, promoting sustainable consumption while reducing textile waste. With over 750,000 users and 4 million listed items, Dabchy is not only making waves in Tunisia but is also exploring opportunities to expand into new markets. The platform empowers women by providing them with a space to buy and sell fashion items, fostering a community of sustainable consumers.

FreshSource (Egypt)

FreshSource is an agri-tech startup that is revolutionizing Egypt’s fresh produce supply chains. By connecting smallholder farmers directly to institutional buyers, FreshSource reduces food loss and enhances price transparency. The funding from Village Capital and Standard Chartered will be instrumental in scaling its operations and improving logistics capabilities, ultimately benefiting both farmers and consumers.

Addressing the Gender Funding Gap

Despite the increasing number of women entrepreneurs, access to venture capital remains disproportionately low. In 2024, women-founded startups received only 2.3% of global venture capital funding, with female-only teams securing even less. This disparity is particularly pronounced in emerging markets, where women-led startups receive just 7% of venture capital.

Research shows that women-led startups often outperform their male counterparts, delivering higher returns on investment. However, they are still 75% less likely to receive equity financing than their male peers. This funding gap can be attributed to various factors, including investor bias, limited networks, and a lack of representation in decision-making roles within venture capital firms.

Strategic Significance of the Investment

The investment by Village Capital and Standard Chartered represents a strategic effort to close the gender funding gap by providing targeted support to women-led startups in sectors with high growth potential. Village Capital’s approach emphasizes peer selection and ecosystem development, aiming to democratize access to venture funding, particularly in underserved markets. Since its inception in 2009, Village Capital has backed nearly 1,800 startups, funneling over $7.5 billion in follow-on capital through its affiliated funds and network.

Standard Chartered’s involvement highlights its commitment to advancing women entrepreneurs across its operational footprint. Regina Mukiri, the bank’s Regional Head of Community Impact and Engagement for Africa, the Middle East, and Pakistan, stated, “Empowering women is critical to sustainable economic growth. We’re committed to addressing structural barriers to funding through this facility and beyond.”

This initiative not only provides financial support but also fosters an ecosystem where women entrepreneurs can thrive, ultimately contributing to broader economic growth and sustainability in emerging markets.