Why The World Needs More Women Investors? | Women Investor

From greater diversity to focus on impact innovations, women who invest will potentially change the technology industry for the better.

Women Investors are spending less than men. It's not an opinion, it's a fact. According to data from the Angel Capital Association (ACA), only 22 per cent of angel investors in the United States are women investors. In Europe, the situation is much more severe, with Women Investors accounting for just 14 per cent of angel investors in the United Kingdom. And in France, 5%, the data shows.

A quick scan of the online database of Tel Aviv-based non-profit organization Star-Up Nation Central shows that the number of women can be counted on one hand among thousands of Israeli angel investors. In addition, there is only one Israeli angel party made up entirely of women investors.

Suggested reasons for this situation also include the following claims: that women investors are more careful with their money and start-up investments are perceived to be high risk; that women consistently have fewer resources to invest; that many male investors have once formed their own companies and are now using their exit money to invest; and that women know less or care less about investments than I do. The last point is that there are considerably fewer women working in finance and investment than there are men. According to a survey conducted by the American National Venture Capital Association (NVCA) in 2019, women investors account for just 11 per cent-20 per cent of investment partners in American venture capital firms.

Women investors are playing a more active role in entrepreneurship would inevitably increase the number of investors as well as the amount of capital available to start-ups. Since there are currently more start-ups than the available funds, promising start-ups cannot always find investments to keep them floating?

In addition, research suggests that investors prefer to back those they find to be close to them. Though women investors would not necessarily exclusively fund women, they are likely to be more likely than their male counterparts to invest in women-led start-ups or women-co-founder companies. According to Pitchbook results, only 2.7 per cent of VC's capital was invested in companies with only Women Investors in 2019 and 11.8 per cent was invested in companies with both male and Women Investors and co-founders. The majority of the assets, over 85 per cent, were invested in men-only startups.

The 2013 Harvard Business Review study reported that labour diversity fuels creativity and success. This is also the case when it comes to entrepreneurs and investors. More Women Investors mean greater diversity and creativity in investment, widening the variety of fields funded by VCs, perhaps the most notable being femtech, innovations designed specifically for women.

Another consideration to be taken into account in a joint study by ACA and the Wharton School of the University of Pennsylvania in 2017 was that women are twice as likely to recognize the social impact of their investment as men, with 33% of women questioned and 16% of men questioned. This suggests that women who invest will have a positive impact on humanity as a whole.