WOMEN IN CAPITAL & FINANCE
More Representation Will Fuel Women-Led Firms To Reach Their Full Potential In The Economy
The harsh reality is that 96 percent of institutional assets under management are controlled by men. But evidence indicates female investors are stronger advocates for gender diversity in portfolio companies, and as such, more women in portfolio management could mean more women in leadership positions across the economy creating a “diversity multiplier effect” (Oliver Wyman).
And the level of investment continues to be staggeringly less than those of male founders. Female founders received only 2.3 percent of venture capital funds in 2018, down from 2.7 percent in 2017 (All Raise). The average deal size for a woman-led company in 2017 was just over $5 million vs. $12 million for male-led companies (Pitchbook). In 2019, 12 percent of VC and angel investor groups in the US had women in decision-making roles and 71 percent of venture firms had no female partners (Pitchbook).
WBC believes that better representation in capital and finance will fuel women-led firms to reach their full potential in the economy. We are calling for:
- The number of female-led institutional funds to grow from 59 to 80 by 2025
- The percentage of AUM managed by female led funds rises from 4% to 10% by 2025
- The percentage of venture capital available to women founders doubles by 2025 from 2.3% in 2018
- The number of women partners in venture capital firms grows to 15% by 2025 from 2.3% in 2018