Funding Females: Investing In Women-Led Startups is Now Drenched with Data
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.
Contact H&J CPA to learn more about meaningful, diverse venture capital opportunities, and make your mark on the world.
Timothy Valentino - CPA, CVA
Tim has over 30 years of public accounting experience to bear on his clients' challenges. He is among our firm's best instructors and works often and successfully with clients' accounting staffs. Tim is a Certified Valuation Analyst (CVA) and is certified to perform business evaluations. Tim is a graduate of Miami University. Read More