Women-led Businesses Outperform Male-Led Firms By 15%, Reveals ACV Report

• AC Ventures (ACV) highlights the ongoing funding gap for female founders in Southeast Asia
• Despite increased investment in the region, women-led businesses still receive a small share of venture capital funding
• ACV urges for greater recognition and investment in women-led businesses to foster equality in the startup ecosystem

On International Women's Day, AC Ventures (ACV) highlights the ongoing funding gap faced by female founders in Southeast Asia. Despite the surge in investment across the region, women-led businesses continue to secure only a small portion of venture capital funding.

For the Indonesia-based VC firm, investing in women-led businesses is a data-driven strategic choice. Research shows that closing the gender gap in business leadership could boost global GDP by up to 26 percent, and women-led companies are 15 percent more likely to outperform those led by men, ACV stated in a release.

"Investing in women-led businesses goes beyond fairness; it's a proven strategy for fostering innovation, economic growth, and sustained success. The economic argument for gender-inclusive investment is clear—women entrepreneurs drive innovation, create jobs, and enhance financial performance," said ACV Managing Partner Helen Wong.

ACV's 2024 Impact Report, created in partnership with Deloitte Indonesia, reveals that 40 percent of the 30,000 jobs sustained by its portfolio are led by women. In 2024, ACV-backed businesses have created 2,000 new jobs and empowered 4 million individuals and businesses from lower to middle-income groups through digitalisation and financial inclusion.

Despite the proven advantages, female founders continue to face significant funding gaps. According to the report "Closing the Funding Gap for Women Entrepreneurs in Indonesia," a joint study by Boston Consulting Group (BCG), Stellar Women, and ACV, there is a global funding shortfall of US$1.7 trillion.

Women entrepreneurs often face obstacles like limited access to investor networks, unconscious bias in funding decisions, and a lack of customized financial support. Many also find it challenging to align their pitches with investor expectations, which are typically shaped by a male-dominated industry landscape.

Helen added, "To bridge this gap, investors must actively support female entrepreneurs, and ecosystems should provide stronger mentorship, networking, and financial literacy programs. At AC Ventures, we prioritize gender-lens investing to ensure women-led businesses have access to the resources they need to succeed,"

Meanwhile, Cindy Nyoto Gunawan and Tiffany Danielle's Rose All Day is revolutionizing beauty with a strong emphasis on sustainability and inclusivity. In the fintech sector, Tessa Wijaya's Xendit is reshaping digital payments, while Joan Ong, Lynn Yeoh, and Rebecca Koh's Supermom leverages AI to connect brands with millions of parents across Southeast Asia.

ACV is currently engaged in IFC's We Fund Climate peer learning platform, which is part of the She Wins Climate initiative launched at COP28. This program connects climate-focused venture capital funds to apply gender-lens investing strategies and supports women-led climate startups through acceleration, investor networking, and business development, according to the VC firm.

"Throughout my career in venture capital across Asia, I've witnessed firsthand how gender diversity – or the absence of it – influences decision-making, deal flow, and economic growth. When I began, there were few women in VC or leadership positions. Over time, I've come to understand that diversity isn't just about representation; it directly leads to better business outcomes," she highlighted.

Since 2012, ACV has made investments in over 120 regional tech companies, managing more than US$550 million in assets. The firm is led by Adrian Li, Michael Soerijadji, Helen Wong, and Pandu Sjahrir, with offices in Jakarta, Malaysia, and Singapore.