The Funding Gap: Analysing Access to Capital for Women and Youth Entrepreneurs in India's Startup Ecosystem

B. Krishnaveni

doi:10.36948/ijfmr.2026.v08i02.80869

The Funding Gap: Analysing Access to Capital for Women and Youth Entrepreneurs in India's Startup Ecosystem

Author(s)	B. Krishnaveni
Country	India
Abstract	India's startup ecosystem has achieved remarkable scale—over 2,09,000 recognized startups, 118 unicorns, and more than $150 billion in funding raised over the past decade. Yet beneath these impressive aggregates lies a persistent disparity: access to capital remains deeply unequal across demographic groups. This paper examines the funding gap faced by women and youth entrepreneurs in India's startup ecosystem. The analysis reveals stark asymmetries: women-founded startups receive less than 5% of venture capital funding, despite nearly 48% of recognised startups having at least one-woman director. India ranks as the second-largest ecosystem globally for women-led startup funding with $26.4 billion raised to date, yet this represents only a fraction of total capital deployed. Youth entrepreneurs face distinct challenges including limited credit history, lack of collateral, and perceived inexperience. The paper analyzes the multi-layered funding landscape—bootstrapping, angel investment, venture capital, bank finance, and government schemes—identifying where and why gaps emerge. It evaluates flagship government interventions including the MUDRA scheme, Stand-Up India, and the newly announced SHE-Marts initiative for rural women entrepreneurs. The paper also examines emerging opportunities including the Youth Co:Lab National Innovation Challenge offering seed grants up to ₹3.5 lakh and the Delhi government's ₹325 crore Campus to Market policy targeting 5,000 student startups. Drawing on data from Tracxn, Venture Intelligence, and government statistics, the paper concludes with evidence-based recommendations for bridging the funding gap through targeted financial products, enhanced investor education, strengthened mentorship networks, and systematic tracking of funding flows by founder demographics.
Keywords	Funding gap, women entrepreneurs, youth entrepreneurs, venture capital, angel investment, MUDRA, Stand-Up India, startup financing, financial inclusion.
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-03-30
DOI	https://doi.org/10.36948/ijfmr.2026.v08i02.80869

View / Download PDF File

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

The Funding Gap: Analysing Access to Capital for Women and Youth Entrepreneurs in India's Startup Ecosystem

Share this