The Proven Track Record Trap

Venture capital has shifted. Investors are more selective, exits are taking longer, and fewer deals are getting done. That shift is creating what Dohadwala describes as a circular problem.

“Investors are becoming more selective across the board. That means they’re increasingly backing founders with a proven track record,” she explains.

The problem? Historically, those founders have been overwhelmingly male.

Women founders, who have received less than 3% of VC funding for years, have had fewer opportunities to build those track records. As a result, they are less likely to meet the very criteria investors now prioritize.

The system is rewarding past winners and reinforcing the same outcomes.

Why Bias Still Shapes Investment Decisions

Bias in venture capital doesn’t always show up in obvious ways. Often, it appears in how founders are evaluated during the fundraising process. “Women are more often asked about risks, while men are asked about opportunities,” says Dohadwala.

That subtle difference changes everything.

Research from Harvard Business School has found that investors consistently ask men “promotion-focused” questions about growth and opportunity, while women are asked “prevention-focused” questions about risk. These differences directly influence how founders present their businesses, and how investors evaluate potential.

When founders are asked risk-focused questions, they are forced into a defensive posture. When they are asked about opportunity, they are given space to sell a vision.

Layered on top of that is what Dohadwala calls “mirror investing.”

“People tend to invest in what looks familiar to them,” she says.

With most venture capital decision-makers still male, that familiarity continues to skew outcomes.

A Tougher Market Is Making It Worse

Today’s funding environment is amplifying these challenges. “Exits are coming later than they were a decade ago, and investors are doing fewer deals,” Dohadwala explains.

Data from Carta supports this shift, showing a slowdown in startup funding activity and longer timelines to exit in recent years.

For founders, that means:

• Longer fundraising timelines
• Greater scrutiny
• A higher bar to secure a lead investor.

When capital becomes harder to access, investors default to what feels “safe.” In practice, that often means backing founders who fit historical patterns.

Fundraising Is a Skill, Not an Event

One of the most overlooked realities of venture capital is that fundraising is not a one-time effort; it is an ongoing process. “Networking is at least 50% of the job,” says Dohadwala.

First-time founders should expect fundraising to take six to nine months. Even experienced founders with a strong track record typically need four to six months. And cold outreach rarely works.

“You need warm introductions through your network: advisors, accelerators, or other founders,” she explains.

This is where many founders fall short. Building relationships with investors takes time, consistency, and deliberate effort, often long before capital is needed.

The Market Size Problem No One Talks About

Another factor quietly shaping funding outcomes is market selection. Venture capital is driven by returns, which means investors are looking for companies that can scale into large markets and generate significant exits.

At Excelestar Ventures, that threshold starts at a $700 million total addressable market.

But many women founders are building in areas like women’s health or niche consumer products, which are important markets, but often smaller or lacking clear acquisition pathways. That creates a mismatch.

Even strong businesses can struggle to attract VC funding if they don’t align with the economic model venture capital requires.

What Needs to Change

Closing the funding gap will require action on both sides. Institutional investors, who supply capital to venture firms, have the power to influence outcomes by mandating that a portion of funds be allocated to women-led companies.

Venture firms themselves can also commit capital internally to support more diverse founders.

But founders have a role to play as well. Dohadwala emphasizes three priorities:

1. Know your numbers.

Financial fluency is critical for managing burn, planning milestones, and making strategic decisions.

2. Leverage your network.

Warm introductions are often the difference between getting a meeting and being ignored.

3. Create urgency.

“If you don’t create excitement and FOMO around your opportunity, investors will continue to circle without committing,” she says.

Ultimately, raising capital is not just about having a strong idea. “A great idea doesn’t matter if you run out of money,” Dohadwala adds.

The Bottom Line

The venture capital gap for women founders is not just a pipeline problem; it’s a structural one. As long as investors prioritize proven track records, rely on familiar patterns, and operate within a system that favors past winners, progress will remain slow.

For founders, the path forward is clear but demanding: build financial mastery, invest in relationships, and position your business for scale. Because in venture capital, access to funding isn’t just about potential; it’s about how the system defines it.