Many investors are seeking opportunities to fund startup companies, but not enough are providing funds to support the growing leaders in entrepreneurship: women.
If you’re looking to fund a startup, there is no lack of evidence that female founders are on the rise:
- Since 1997, the number of businesses owned by women has increased 74%, and the amount owned by African American women has increased 322%.
- Privately-held businesses owned by women alone have added 340,000 jobs in the U.S. since 2007, whereas companies owned by men saw a decrease of 1.2 million jobs.
- With at least three women on a company’s board, businesses see a 66% increase in return on invested capital, compared to boards without female representation.
- Having just one female on these boards also produces a 40% decrease in accounting errors.
These successes are attributed to inherent qualities that give many women the edge on their male counterparts:
- Women are more likely to engage in open conversation, asking questions and communicating concerns, allowing them to receive the help they need.
- They put great value in relationships and therefore take care of their clients, employees, and other associates, connecting with others on a more personal level.
- Rather than entering a negotiation for personal gain, women more often handle business deals with a goal of mutually beneficial transactions.
Despite this exceptional advancement, companies founded by women have only been awarded 7% of all venture capital in the country, and they continue to receive just $0.78 for every dollar a man would make for the same job.
To contribute to the advancement of entrepreneurship, consider supporting a female-founded startup you’re passionate about.