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Venture capital financing in women's businesses remained stagnant at 2.2% for the second year in a row. Insiders expect the figure to start increasing slightly, but slightly.
A new survey of founders reveals that only 8% feel supported by the risk community. The weak growth of female leadership in venture capital is seen as the main culprit – nearly three-quarters of US companies do not even have a single partner. Many young investors exhaust themselves before reaching the higher echelons, often citing lack of support. But now, nearly 1,000 VCs on the planet are working together to find a solution.
The Global Women in VC directory is the largest self-reported directory of women investors registered in institutions, companies and family offices. It includes venture capital funds in more than 600 funds from more than 25 countries. The private directory is protected by a pbadword and is reserved for women who are currently part of the joint venture, but the co-creators of this initiative – Sutian Dong, partner at Female Founders Fund, and Jessica Peltz-Zatulove, partner at MDC Ventures – just released some key information. group results.
The common steps in which women venture capitalists invest – and why
According to data collected in the directory, women invest mostly at an early stage: 71% of them invest in Series A and 66% in the initial stage. At the same time, with regard to the B-series and growth-stage contracts, far fewer women are investing – 44% and 30%, respectively. The gap widens at the level of the partners – only 20% invest at the stage of the growth and 37% at the level of the series B (against 75% at the initial stage and 68% at the level of the series A). The problem is clear: when fewer women are at the table and, more specifically, that they are making checks, fewer women-led businesses are funded. Given these numbers, it is not surprising that few founders managed to raise B series and growth.
The sectors in which women invest
The main sectors in which women invest are business, healthcare, fintech and consumer products. About 20% of women investors are active in each of these areas. About 15% of them invest in SaaS and 14% in AI / machine learning, followed by markets (10%), education (10%) and computer training. trade (10%).
The main business sectors vary considerably when one examines the flow of transactions between partners compared to those of the lower levels. For example, the health sector is the main sector in which women partners invest. They are also more likely to focus on markets, biotechnology, education, AI and trade than their younger counterparts. Junior VCs, on the other hand, show a greater preference for financial technologies, transportation, food technologies, insecurity technologies and AR / VR than their partners.
A path to more women in leadership
Thirty-seven percent of VC women hold a partner or general partner title. This leaves a considerable number of venture capital talent with upward mobility potential in need of support and mentoring. Eleven percent of women are currently at the main level – most often on the way to a partner or creating their own fund. A larger group, 16%, is made up of badociates, a role that most often belongs to VC. In addition, 6% of women hold badyst positions, while the positions of Senior Associate, Vice President and Director of Investments are occupied by just over 10% of women in the combined venture capital.
"We need to increase support for young talent to reach partner level and funding initiatives for women to increase the number of fund managers for the first time in the world. It starts with more women not only speaking out, but working together to identify solutions, "Dong told me.
Markets attracting more women to venture capital
Most of VC's women work in San Francisco (29%) and New York (27%), followed by London (9%), Boston (5%) and Chicago (4%), based on repertoire data. . Although 36% of all female partners are unsurprising in the New York Bay area, the New York venture business market is teeming with young female talent – 32% of all non-VC partners reside there. SF follows with 25%. Some global markets for young emerging talent are Toronto, LA, DC, Sydney, Berlin, Singapore, St. Louis, Amsterdam, Bangkok and Tel Aviv.
"This study shows that women rely heavily on technical firms and invest in a wide range of markets. This refutes all the misconceptions that women invest mainly in consumer or commercial enterprises, "Peltz-Zatulove told me. As women in the directory come from 74 cities and 29 countries, the community "has become the gateway to a broader support system while there is often a shortage of women investors in their local market . outside.
The women's VC directory does more than highlight these statistics, though, say Peltz-Zatulove and Dong. They see it as a community capable of bringing about change. "[It enables] VCs women to better connect with each other to collaborate, exchange transactions and develop a strong sense of community, "Dong said. "Broad access to industry data and trends in real time [in that community] is a powerful additional benefit. It can be used to identify growth, detect gaps, and understand exactly where and why women still face major barriers within the organization. "
Beck Bamberger is an investor and founder of Bam Communications. She is a regular contributor to Forbes, Fast Company and AdAge.
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