Gender-Lens Investing: Toolkits and Resources

prakashshravani,

If you are an angel investor, a Family Office, a Venture Capitalist or anyone looking to become richer by investing in new and emerging businesses, it might be prudent for you to bet on ventures founded by women!

Research studies have proven that the world over, women-led business have been yielding a higher ROI than all businesses!

Here is an overview of available evidence pointing to the benefit of women founded businesses to investors:

1) Women-led private technology companies are more capital-efficient, achieve 35 percent higher return on investment, and, when venture-backed, bring in 12 percent higher revenue than male-owned tech companies – Kauffman Foundation’s report “Women in Technology: Evolving, Ready to Save the World” that draws on responses to an online survey from 500 women in the tech sector (inside and outside the U.S.) 

2) In a 10-year time span, women founded companies in VC First Round Capital’s portfolio outperformed companies founded by men by 63%. Three of First Round’s top 10 investments of all time based on value created for investors have at least one female founder. 

3) A survey conducted by Illuminati Ventures found that high-tech companies women build are more capital-efficient than the norm. The average venture-backed company run by a woman had achieved comparable early-year revenues, using an average of one-third less committed capital. 

4) Startups founded and co-founded by women generated 10% more in cumulative revenue over a five-year period. For every dollar of funding, these startups generated 78 cents, while male-founded startups generated less than half that-just 31 cents – A BCG study of experiences of 350 companies that had been through the MassChallenge program that provides support and mentorship for entrepreneurs. 

5) Women create businesses that focus on addressing real issues or problems they’ve observed or experienced. Also, numbers show that globally Female entrepreneurs hire more and create more jobs. Hence, women founded businesses are good for the economy  

Seems like a good enough business case for changing the gender balance of investment portfolios!

Following are some toolkits and resources to help investors include gender-lens into their investing decisions:

A practical toolkit for investors to accelerate their gender lens investing journey from intention to action.
View Here
The Guide is a practical step-by-step road map for fund managers on how to strengthen gender diversity within their own firms and incorporate a gender focus into investment operations. 
Read here
The report demonstrates how IFC clients, including banks and agribusiness companies, have benefited from developing and implementing gender-smart solutions.
Download the full report or individual company case studies
This How-To Guide provides practical tools and resources for the investing community that urgently needs to address its diversity and inclusion deficits. 
Read here
Practical guidance and tools for creating a gender inclusive investment strategy.
Read here
This primer seeks to clarify the range of approaches and opportunities available for investors to successfully integrate gender diversity criteria into an investment portfolio.
Read here
This guide presents targeted evidence and first-hand lessons learned when applying gender lens investment strategies. The insights provided aim to help them address the remaining gaps and unmet needs of women-led firms while enhancing access to finance for women entrepreneurs.
Read here

Leave a Reply