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Venture Capital: Women Are Catching Up

Summary:
However, it is safe to assume that more women will be involved as VC companies are increasingly being co-founded by women. The data shows that these are attracting more women executives. For example, in these businesses 43 percent of partners are women, compared with the industry norm of seven percent. Ultimately, more women are needed in positions which require making decisions about investments in start-ups. This is the only way for women to obtain a fair share of the overall venture capital pie. Women Finance Women It has long been known that VC companies headed by women invest four times as often in women-led start-ups than those whose corporate boards only comprise men. One can only speculate about the reasons for this. According to the authors of the Credit Suisse study, the principle of "like likes like" may be at work. People tend to surround themselves with what is familiar, in terms of gender, origin, character traits etc. In addition, women VC partners seem to be less impressed, or possibly less deterred, than their male colleagues by the way a business idea is presented. Better Understanding of Market Opportunities If female company founders receive their capital from other women, they are just as successful as their male counterparts.

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However, it is safe to assume that more women will be involved as VC companies are increasingly being co-founded by women. The data shows that these are attracting more women executives. For example, in these businesses 43 percent of partners are women, compared with the industry norm of seven percent. Ultimately, more women are needed in positions which require making decisions about investments in start-ups. This is the only way for women to obtain a fair share of the overall venture capital pie.

Women Finance Women

It has long been known that VC companies headed by women invest four times as often in women-led start-ups than those whose corporate boards only comprise men. One can only speculate about the reasons for this. According to the authors of the Credit Suisse study, the principle of "like likes like" may be at work. People tend to surround themselves with what is familiar, in terms of gender, origin, character traits etc. In addition, women VC partners seem to be less impressed, or possibly less deterred, than their male colleagues by the way a business idea is presented.

Better Understanding of Market Opportunities

If female company founders receive their capital from other women, they are just as successful as their male counterparts. But not if they receive the money from men: In that case, on average, the companies founded by women do not go as far as those founded by men. Only 17 percent of "female" companies can be taken public or sold; in the case of men, it is 27 percent.

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