Entrepreneurs are the backbone of Canada’s economy, with small and medium-sized enterprises (SMEs) accounting for 90% of private sector employment. These businesses span various industries, from agriculture and food services to construction and wholesale. However, a significant gender disparity remains. According to the Women Entrepreneurship Knowledge Hub, only 18% of businesses in Canada are women-owned, and just 4% of venture capital (VC) funding goes to women-led businesses.
Where are the gaps? What needs to change? Who is making these decisions? We sat down with Daniela Pico, Head of Platform at Forum Ventures, to explore these pressing questions
Bridging the Gap: Challenges and Opportunities for Female Founders
Access to Funding and Investment Disparities
Research supports Daniela’s observations on female founders’ challenges in securing VC funding. A study co-authored by Heather Tookes (Yale School of Management), Camille Hebert (University of Toronto), and Emmanuel A. Yimfor (Columbia University) highlights a concerning trend: Even when male and female co-founders come from the same background and later pursue independent ventures, women are significantly less likely to receive VC funding — even if their previous startups performed similarly to those of their male counterparts.
This systemic issue underscores the urgent need for more female investment decision-makers and a shift in how the industry assesses women-led ventures.
Read the full study here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4784414
Insights from the Industry: Interview with Daniela Pico, Head of Platform at Forum Ventures
Question: Are there any emerging trends or sectors you believe are promising for women entrepreneurs looking to start or grow their ventures?
Daniela: This is actually something that I have thought about a lot because we invest in a lot of women at Forum Ventures – diversity is a big priority for us and we’d love to invest in more women. I’ve noticed fewer women launching companies in manufacturing, supply chain, logistics, and deep AI. Obviously there are great examples of female founders in all of those industries, but when I look at our pipeline, there are not as many women starting companies in those spaces in the first place.
These industries, historically dominated by men, remain underrepresented among female founders. A key challenge is increasing exposure to these fields early on to create a stronger pipeline of women-led startups.
Question: What common challenges do female founders face when pitching to investors, and how can they best prepare to overcome these obstacles?
Daniela: Research shows that women are often asked about execution rather than vision. They know the ins and outs of the business and dig into operations — this is an implicit bias in the investor community. To counter this, founders should stay focused on their strategic vision and proactively reframe questions. An effective approach is to take control of the framing with an answer like: “That’s a great question. First, let me share our broader vision.” This helps shift the conversation from operational details to big-picture thinking.
Question: How do you see the role of venture capital in supporting female founders? Are there any specific initiatives or programs that you believe are making a significant impact?
Daniela: As a woman founders, making sure you have a strong network of other female founders is essential. As women we can help each other navigate the landscape, make introductions, and get ourselves more prominently into rooms where we are underrepresented.
Other female founders not only understand the challenges but can also offer connections and insights. As for support structures, fortunately, Canada provides more support structures than many other countries, including government funding and healthcare benefits, making the risk lower for entrepreneurs who can access capital – we often see Canadian companies building with less dilution because of government funding opportunities at least in the early stages.
Question: Looking ahead, what are your aspirations for the future of female entrepreneurship, and how do you envision your role in helping to shape that future?
Daniela: I feel so much optimism. I know that there’s a lot of negativity, but it’s never been cheaper to start a company. That opens up an entirely new market of startups that don’t actually require funding […], and I think in the next generation of startups, we’re going to see a lot of [companies] that are bootstrapped.
[There will be] opportunities for women, particularly women with non-technical skill sets, to create startups that can grow differently in ways that allow us to work around systemic barriers. I’m excited for that because it opens up a new era of power for people that haven’t traditionally had access to venture capital markets.
Question: What has to change to have more women in the room making the decisions?
Daniela: We need more female billionaires. Funding women and hiring women in early-stage-equity-holding roles are two of the biggest things that we can do to change the industry as a whole. If we don’t have millionaire women we are never going to have that systemic change. Cheque writers decide who gets to create the future the more women we can get in the seat, the faster the change will happen.
Programs and Resources
Daniela is right. Canada offers a range of initiatives to support women entrepreneurs, addressing barriers to funding, mentorship, and scaling. Some key programs include:
Government and Institutional Support
Women Entrepreneurship Strategy (WES): A $7 billion initiative aimed at breaking down systemic barriers and promoting gender equality in entrepreneurship.
- WES Inclusive Women Venture Capital Initiative: Works to increase access to VC funding for women entrepreneurs.
- Women Entrepreneurship Loan Fund: Provides loans of up to $50,000 to help women start, grow, and expand into international markets.
- WES Ecosystem Fund: Strengthens entrepreneurial networks by offering mentorship, training, and support services.
- Women Entrepreneurship Knowledge Hub: A go-to resource for data, insights, and networking opportunities tailored to women entrepreneurs.
BDC Thrive Platform for Women ($500M initiative):
- Thrive Venture Fund ($300M): Direct investments in women-led tech startups.
- Thrive Lab ($100M): Innovative funding models for women-led businesses.
- Indirect Investment Envelope ($100M): Investments in women-focused VC funds.
Community-Led Initiatives
The Firehood: A movement dedicated to advancing women in technology through mentorship, networking, and funding.
- Firehood Circles: Peer groups focused on tech specializations like AI, Blockchain, and Cybersecurity.
- Special Events: Monthly pitch sessions and participation in major tech conferences.
- Firestarter Program: A partnership with BDC, connecting early-stage, women-led startups with investors and industry mentors.
Looking Ahead
Systemic change requires financial empowerment. Increasing the number of women in leadership and investment roles will not only create more opportunities for female entrepreneurs but also drive broader economic growth. Programs and initiatives supporting women-led businesses are making an impact, but there is still work to be done.
As more women break into male-dominated industries, gain access to funding, and establish thriving businesses, the future of female entrepreneurship looks bright. With continued investment and support, the next generation of women entrepreneurs will redefine success on their own terms.
At BHive, our new 14-week program, Brampton NEXT, is designed to help entrepreneurs launch and scale their businesses in Brampton, Canada. We focus on providing resources such as mentorship, networking opportunities, business development support, and workspace access. If you are a newcomer female founder looking for help to integrate your ideas and startup into the Canadian ecosystem, apply to our program today.