Why Women Are Changing the Investment World

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2001

Angel investing is a top priority for many of today’s start-ups and small businesses. In the past, getting a group of angel investors together was a lot like having a local “good ol’ boys” club where everyone knows everyone else and the pool of money isn’t widely shared. In contrast, the recent annual gathering of the Angel Capital Association has recognized the growth of women in this field and held special networking dinner and receptions for them.

No boys allowed.

The facts show that women are getting more involved in angel investing than ever before. Historically angels have been 85% men in the United States. In 2012, that figure was 87.8%. Now 1 in 5 entrepreneurs who receive funds from angel investing are receiving it from women.

Having Women On the Funding Side Matters

Women dominate the US business world despite the fact that so many of them face a glass ceiling. 30% of the businesses that are being considered for angel funds right now are run by women. 1 in 4 angel investing groups is primarily made up of women. In total funding distribution, women support women at a 2:1 ratio compare to men supporting women.

This means there must be an emphasis to get more women involved in this part of the investment world. To attract more women as angel investors, there needs to be more women who are entrepreneurs. The successful stories of women in this world need to be highlighted so more women are attracted to their stories.

And finally, the atmosphere needs to change. This isn’t a men vs. women dynamic that requires competition amongst the genders. It is a world where men and women must be treated equally because their ideas are equally brilliant. Just because a woman has an idea shouldn’t make it less valuable simply because she’s a woman.

There are a number of angel education organizations that are specifically targeting women so these changes can be made. Groups like 37 Angels and Golden Seeds have been investing for more than a decade into projects that are led by women [and men] with deals averaging up to $150k in some years and more than $60 million invested by some groups.

Women are changing the investment world one project at a time. It’s time to embrace this evolution because everyone will find more success, allowing that glass ceiling to finally come down.