WHY INVEST IN WOMEN?
It’s obvious to us: Investing in women is good for business. But for some weird reason, not everyone knows that…
Our Present Reality (Head’s Up: It’s Not Pretty)
Just in case you missed our last article [hyperlink], here’s what’s up. Fundraising is much more difficult for female entrepreneurs than for male entrepreneurs. In fact, women receive less than 3% of all Venture Capitalist funding. And when they do secure funds, they’re given half the amount that men get—compare $935,000 to $2.1 million. It blows our minds that women are so overlooked in the world of startups and entrepreneurship. Especially given that women do significantly better with the money they’re given. Don’t believe us? Keep reading.
Investing in Women-Owned Businesses
Is a very, very good idea. Boston Consulting Group, the second biggest management consulting firm in the world, agrees. In their article “Why Women-Owned Startups are a Better Bet” they examine what happens when investors give a company $1. Sure, $1 is a little unrealistic, but this is how it actually plays out on a small scale. The average male-owned, venture-backed company would use the dollar to generate 31 cents. Meanwhile, the average female-owned company under those same circumstances would generate 78 cents. For those of us who aren’t mathematically inclined (no judgement) that’s more than double the return per dollar invested! Though venture capitalists are running late to the investing-in-women-party, philanthropists have been doing this for decades. Take the United Nations for example, who have been sending microloans predominantly to women owned businesses in Africa and Asia since the 1990’s. Philanthropists get it. Rogue is another well-known Venture Capitalist firm that’s done research on this same topic—and let me tell you, this next stat is wild! Have you ever heard of a unicorn? No, not the magical land-narwhal. We’re talking about a startup company that reaches a value of over $1 billion dollars. You know the type: Glossier, Lyft, Bumble, Poshmark, Spanx. Well, according to Rogue’s research, women-led businesses are 500% more likely to become unicorns! That’s right, Five-hundred. Just let that sink in.
Investing in Women is an Opportunity
According to a Harvard Business Review article, it’s a multi trillion-dollar opportunity. You see, this issue doesn’t just exist in the United States. In almost every country, male-owned businesses outnumber or significantly outnumber female-owned businesses. (Quick shout out to the four exceptions: Vietnam, Mexico, Indonesia, and the Philippines.) And gender bias runs rampid—according to Oxfam, 155 out of all 195 countries have at least one law which causes women to have fewer economic rights than men. However, if we were able to bridge the gap globally—meaning there were as many women-owned businesses as there were male-owned businesses—the global GDP would rise somewhere between $2.5 trillion to $5 trillion. And that’s trillion with a ‘T’. Let’s keep going. Robert Næss is the portfolio manager of Nordea, the largest financial group in the Nordic countries. He conducted a study of 10,000+ publicly traded companies over the span of 8 years, and here’s what he said at the end: “If you invested in a company with a woman at the helm, you would have outperformed the market.” Out. Performed. The. Market. It’s clear to see that investing in women benefits both the global economy and the investors themselves. But it also changes the quality of life for millions of individuals; Rogue tells us that women invest 90% of their income back into their family and community, so investing in them means empowering the next generation and bettering entire neighborhoods.
What’s AngeLink Got to do With All This?
AngeLink was born from an audacious goal. We’re a women-led company, building purpose-driven technology, making the impossible, possible. We’re democratizing access to funding and creating a radically new ecosystem of financial inclusion to make a meaningful impact in people’s lives. In short, we’re tackling the business gender gap and working to become a financial force for good and empower women of all ages, cultures and backgrounds to reach economic parity.