AI is crowding out female founders: Startups with at least one female founder accounted for just 21.7% of the combined value of VC investments in the US throughout 2024 — the lowest rate since 2017 — as VC funds shift their focus to AI startups, according to Pitchbook. Last year’s reversal threatens to roll back some of the gains seen in terms of female representation over the past few years.

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By the numbers: Female-founded startups collectively raised USD 45.3 bn in 2024, up almost 12% y-o-y. However, Anthropic — co-founded by Daniela Amodei — accounted for USD 9.2 bn of this total. Excluding Anthropic, funding for female-founded startups drops to USD 36.1 bn, out of combined value of investments at USD 209 bn.

Early-stage startup funding also saw a decline: Out of more than 3.1k first financings in 2024, only 20.5% involved a female co-founder, down from 26.5% in 2020. This is particularly concerning as early-stage funding is historically more equitable and has a higher number of female investors, according to Pitchbook.

Funds targeting female founders are also “scaling back size or struggling,” further narrowing prospects for female-led startups, Artemis Fund General Partner Diana Murakhovskaya said. The closure of global nonprofit Girls in Tech after 17 years in business, and the legal block enforced on US-based Fearless Fund’s grants for Black female-owned businesses, are some of the most recent indications of dwindling resources for female entrepreneurs.

Bias is bad for everyone: Lack of diversity in VC decision-making teams leads to “market blind spots” and missed prospects, Pitchbook argues. The imbalance also risks embedding systemic gender inequities into AI systems, as they will be developed mainly by male-founded ventures.

MARKETS THIS MORNING-

Asian markets are mixed this morning, as investors analyze Trump’s comments on China tariffs starting February. Japan’s Nikkei rose 1.5%, while Hang Seng (Hong Kong) declined 1.4%, and Shanghai Composite declined 1.0%. Wall Street futures are in the green following strong gains for the S&P 500 in the first trading day after Trump’s inauguration.

EGX30

29,827

+0.7% (YTD: +0.3%)

USD (CBE)

Buy 50.22

Sell 50.35

USD (CIB)

Buy 50.25

Sell 50.35

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,370

-0.1% (YTD: +2.8%)

ADX

9517

+0.1% (YTD: +1.0%)

DFM

5220

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S&P 500

6049

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FTSE 100

8548

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Euro Stoxx 50

5166

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Brent crude

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Natural gas (Nymex)

USD 3.76

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Gold

USD 2759.20

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BTC

USD 106,465.40

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THE CLOSING BELL-

The EGX30 rose 0.7% at yesterday’s close on turnover of EGP 4.2 bn (11.3% above the 90-day average). Local investors were the sole net sellers. The index is up 0.3% YTD.

In the green: Oriental Weavers (+8.5%), E-finance (+3.9%), and Orascom Construction (+3.6%).

In the red: Abu Kir Fertilizers (-1.8%), Mopco (-1.6%), and Heliopolis Housing (-1.4%).

CORPORATE ACTIONS-

EGBank’s board approved paying out a dividend of EGP 0.99 per share on its 2024 earnings, according to a disclosure (pdf). The decision will now be passed to the bank’s general assembly for approval.

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