The Reality for Diverse Founders in Healthcare, Climate Tech, and Food & Ag Tech
Innovation doesn’t happen in a vacuum. It thrives when diverse perspectives, experiences, and insights come together to solve complex problems. Yet, today’s political and economic climate is making it increasingly difficult for diverse founders - particularly women, people of color, and underrepresented entrepreneurs - to secure funding, navigate shifting regulations, and gain traction in industries that are shaping the future.
Healthcare, Climate Tech, and Food & Ag Tech are fields with the power to transform lives. From addressing health disparities to building sustainable food systems and ensuring sustainable climate solutions, these industries sit at the intersection of science, technology, and policy. But the very founders best equipped to drive meaningful change are facing growing challenges. As economic uncertainty and policy changes create new barriers, what does the road ahead look like for these innovators?
Funding Gaps: Who Gets Backed and Who Gets Left Behind
For years, diverse founders have received only a fraction of venture funding. According to World Economic Forum, in 2023, U.S. startups founded solely by women received less than 2% of all venture capital dollars (Masterson, 2024). Even more shocking is, according to Crunchbase, Black and Latinx founders together received less than 3% (Metinko & Teare, 2024). The numbers are even smaller for women of color. While many firms have made commitments to invest in diverse-led startups, real progress has been slow, and recent economic shifts are only making things worse.
In uncertain economic times, investors tend to retreat to what feels "safe"; often meaning they invest in the same networks, founders with familiar backgrounds, and business models they’ve seen before. This disproportionately disadvantages founders in Healthcare, Climate Tech, and Food & Ag Tech who are working on novel solutions, especially those focused on underserved communities.
Healthcare startups addressing racial and gender disparities in care, such as those in FemTech and reproductive health, are often overlooked in favor of more traditional biotech investments.
Climate Tech founders face skepticism about the long-term profitability of sustainability solutions, despite clear evidence that climate-conscious innovation is critical for the future economy.
Food & Ag Tech startups tackling food security, sustainable agriculture, and climate-resilient food production often face difficulty securing venture funding, especially if their models require infrastructure investment rather than software alone.
As funding becomes even more concentrated in the hands of a few, the risk is that the most transformative solutions - the ones that could benefit marginalized populations the most -may never make it to market.
Beyond funding, diverse founders in these sectors must navigate a policy landscape that is becoming increasingly unpredictable.
Healthcare: The Impact of Policy on Innovation
The Healthcare sector, particularly FemTech and reproductive health, is deeply affected by shifting regulations. Changes in reproductive rights legislation, for example, have created uncertainty for startups offering digital health services for women. This instability makes it difficult for founders to secure long-term investments and partnerships.
Beyond reproductive health, startups working on maternal health, chronic disease prevention, and personalized medicine for diverse populations face barriers in accessing regulatory approvals and insurance reimbursements. Without strong policy support, many of these companies struggle to scale their solutions in a way that reaches the people who need them most. Reuters released an article in 2024 about how Venture Capital firms were investing in maternal health but how will that funding be affected now with the constant shifting of policies (Niasse, 2024)?
There’s also the concern that policy shifts could force AI-driven health startups to disclose private patient data, raising serious ethical questions about AI’s role in healthcare according to an article published by Manatt (Augenstein, Fox, Seigel, & Shashoua, 2025). With regulations constantly evolving, founders are left navigating a minefield of compliance risks, unsure if the data they collect today will become a liability tomorrow. At the same time, AI has the potential to revolutionize personalized medicine and improve patient outcomes but only if trust, transparency, and clear guidelines are in place. Without that, innovation stalls, and the very patients these startups aim to help could be the ones most at risk.
Climate Tech: A Policy Tug-of-War
Climate Tech founders are caught in the middle of unpredictable sustainability policies. While some governments are doubling down on clean energy and carbon reduction initiatives, others are rolling back incentives and subsidies that startups rely on. This unpredictability makes it harder for founders to plan for growth and secure the investments needed to scale.
Despite this, groups like the Stanford Energy Club continue meeting with investors to strategize how to build successful Climate Tech startups amid regulatory turbulence (Pinney, 2025).
Many Climate Tech companies also focus on solutions for historically underserved communities such as clean water access, sustainable agriculture, and green infrastructure for low-income areas. However, these solutions often require government or institutional support, which is harder to secure when sustainability policies are constantly shifting.
Food & Ag Tech: The Overlooked Crisis in Food Security
Food and agriculture technology are often left out of mainstream discussions about innovation, yet it is central to solving major global challenges. According to an article in AgriTech Tomorrow, founders in Food & Ag Tech are tackling issues like food security, regenerative agriculture, and the reduction of food waste while facing major regulatory and funding challenges (Erez, 2025).
Food Tech startups working on lab-grown meat and alternative proteins face shifting regulations that impact how quickly they can bring their products to market.
Ag Tech founders innovating in sustainable farming, precision agriculture, and soil health often struggle to secure government incentives, as policies frequently favor large-scale industrial agriculture over small, diverse-led startups.
Supply chain innovation is critical to reducing food waste, but startups in this space must navigate complex logistics, regulations, and distribution networks that favor established players.
With climate change intensifying food production challenges, policies that support small and diverse-led Ag Tech companies will be crucial for ensuring long-term food security.
The Path Forward: Why Supporting Diverse Founders Matters
The challenges are clear, but the need for innovation in these fields has never been greater. If we fail to support diverse founders, we risk missing out on groundbreaking solutions that could reshape healthcare, combat climate change, and revolutionize food and agriculture.
So what needs to change?
Investors must be intentional about funding diverse founders – This means not just making commitments but actively seeking out and investing in companies led by underrepresented entrepreneurs.
Policy stability and support are critical – Governments need to ensure that regulations encourage, rather than stifle, innovation in Healthcare, Climate Tech, and Food & Ag Tech.
Larger companies should mentor and partner with diverse startups – The startup ecosystem is strongest when established companies uplift and collaborate with emerging founders.
Consumers and businesses must support diverse-led companies – Whether through partnerships, purchases, or advocacy, supporting these businesses at every level is key to ensuring their success.
The future of Healthcare, Climate Tech, and Food & Ag Tech depends on the ones building it. If we want that future to be sustainable, inclusive, and equitable, we need to ensure that diverse founders have the resources and support they need to succeed.
#DiverseFounders #Healthcare #ClimateTech #AgTech #Entrepreneurship #MindTheGapServices
References
Augenstein, J., Fox, A., Seigel, R., & Shashoua, M. (2025, January 26). Manatt Health: Health AI Policy Tracker. Retrieved from Manatt: https://www.manatt.com/insights/newsletters/health-highlights/manatt-health-health-ai-policy-tracker
Erez, Y. (2025, January 28). AgTech Startups Face Tough Challenges. How Can They Overcome Them? Retrieved from AgriTech Tomorrow: https://www.agritechtomorrow.com/article/2025/01/agtech-startups-face-tough-challenges-how-can-they-overcome-them/16220
Masterson, V. (2024, March). Women founders and venture capital – some 2023 snapshots. Retrieved from World Economic Forum: https://www.weforum.org/stories/2024/03/women-startups-vc-funding/
Metinko, C., & Teare, G. (2024, February 27). Drop In Venture Funding To Black-Founded Startups Greatly Outpaces Market Decline. Retrieved from Crunchbase: https://news.crunchbase.com/diversity/venture-funding-black-founded-startups-2023-data/
Niasse, A. (2024, August 19). Venture capital firms making bets on maternal health. Retrieved from Reuters: https://www.reuters.com/business/healthcare-pharmaceuticals/venture-capital-firms-making-bets-maternal-health-2024-08-19/
Pinney, F. (2025, February 10). Stanford Energy Club hosts investors of climate technology amid regulatory uncertainty. Retrieved from The Stanford Daily: https://stanforddaily.com/2025/02/10/stanford-energy-club-hosts-investors-of-climate-technology-amid-regulatory-uncertainty/
