10 Stats That Build the Case for Investing in Women-Led Startups
Women-led startups don't just provide women entrepreneurs with opportunities—they're sound investments. From solving tech problems and fighting bias to efficiency and determination, women have had to have it all to make it in the startup scene. And from higher revenue and return on investment to performance and growth, they're making it work. Here, Forbes looks at 10 statistics that make a strong case for investing in women-led businesses.
The next Steve Jobs will be a woman. She understands how to solve a specific problem facing this world by leveraging tech. She knows the diverse and inclusive team it will take to build the product and implement solutions. She’s an experienced entrepreneur who knows how to operate with the leanest resources because, let’s face it, she’s had no choice considering how VCs have invested 98 percent of their capital in startups led by men. And the women-led startups that did raise capital, on average, raised 36 times less money in 2017 than those founded by men, according to PitchBook Data Inc.
But is the tide turning as more VCs diversify the startups in their portfolio? For example, Indie.vc, a fund founded by Bryce Roberts, (and currently accepting applications for their next round of investments) has been intentional about recruiting women-led startups since it launched and 50 percent of their portfolio is comprised of startups founded or cofounded by women. Golden Seeds has also focused on significantly diversifying their portfolio with women-led startups. Make no mistake though, these VC funds are not funding women-led startups as charity. They are investing in women founders because they understand the strong ROI of investing in diverse startups.
Here are 10 stats that build the case for investing in women-led startups. If you’re an investor, print this list out and post it on your wall to remind yourself to stop leaving money on the table. If you work with investment associates on your team, tape yellow sticky notes to their laptops so they never forget this money-making data.
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Image credit: Patrick T. Fallon | Bloomberg