Moving Beyond the Business Case: How To Make Venture Capital Work for Women Entrepreneurs
Powered by Village Capital and Microsoft
The business case for supporting female entrepreneurs is clear. Studies show that when ventures have a more diverse founding team, they outperform all male team by 60%. A recent study from Calvert Impact found that when women are in leadership positions or on the board of their investments, those companies outperform on all metrics (sales, assets, return on equity). Yet, we still see only 2% of venture capital financing allocated to female founders (15% is allocated to startups with female co-founders). Why? As investors we often talk about why we invest, or what we invest in, but we too rarely talk about how we invest. A host of academic research implies that investors – both male and female – bring implicit bias to their investment decisions in a way that hurts women and causes a “crowding out effect”.
However, there are proven approaches that investors can take to mitigate this bias, including a recent study from Village Capital on its peer selection method that demonstrates that the gender bias that commonly occurs within traditional venture capital is mitigated during the peer review process.
In this session, GEC will bring together experts to discuss specific strategies to tap into the potential of female founders as growth-oriented entrepreneurs.
Speakers will share ideas for alternative investment structures, policy and other approaches to create a more inclusive environment for female founders and will discuss the challenges and opportunities for women entrepreneurs when they seek to raise capital and grow their businesses.