When it comes to investing, our world is failing women. Let’s break it down into simple numbers. In a Fortune article from March 2017, it was reported that almost 5% of venture capital deals in 2016 were given to female-led businesses, which is the highest in the last ten years. Unfortunately, those VC deals don’t amount to much–the funding that those businesses received make up 2% of the overall total funding granted in that year to all businesses. So although venture capitalists are investing in more women, those female-led businesses are actually receiving less money. Clearly, there is still a lot of work to do.
Let’s reiterate what the investment world seems to be slow in understanding: investing in women is beneficial. If more companies minimize the gender gaps in many industries, the global GDP would increase by 26% by 2025. If more VCs invested in women-led businesses or gender diverse companies, they could get a higher return as well as see these companies outperform and raise the standards of success. But because of unconscious gender bias, traditional mindsets, and a homogeneous VC community, the progress we want to see is at a stand still.
If you want to know more about how positive of a change it would be to invest in the women of the world, check out Women Deliver’s The Deliver for Good campaign of 2016. They provide many infographics about the problems women are subjected to as well as an explanation about how investing in women, their capabilities, and their future is for the greater good of the world. Spread awareness! And for aspiring female business leaders, let’s create a world where future and present female leaders can better thrive.
One of the many amazing infographics Women Deliver created. Be sure to check out their site and work!