The World Needs More Female Investors
From greater diversity to an emphasis on impact technologies, women who invest can potentially transform the tech industry for the better
Efrat Shuster | 13:00 08.03.2020
Women invest less than men. This is not an opinion, it is a fact. According to data from the Angel Capital Association (ACA), just 22% of angel investors in the U.S. are women. In Europe, the situation is even more dire, with women amounting to just 14% of angel investors in the U.K. and 5% in France, the data shows. A quick search of the online database of Tel Aviv-based non-profit organization Star-Up Nation Central reveals that among dozens of Israeli angel investors, the number of women can be counted on one hand. Additionally, there is only one Israeli angel group composed solely of women. data from Pitchbook, in 2019, just 2.7% of VC capital was invested in companies with only female founders and 11.8% was invested in companies with both male and female co-founders. The rest of the funds, over 85%, was invested in startups founded solely by men. A 2013 report by the Harvard Business Review established that workforce diversity drives innovation and success. This is also true when it comes to founders and investors. More female investors mean greater diversity and innovation in investments, expanding the range of fields supported by VCs, perhaps the most prominent being femtech, technologies being developed specifically for women. Another element to take into account was presented in a joint 2017 study by ACA and the Wharton School of the University of Pennsylvania: women are twice as likely to strongly consider the social impact of their investment than men, with 33% of women questioned and 16% of men stating so. This means women who invest could have a positive effect on the whole of humanity. Efrat Shuster is a partner at the commercial department of Israeli law firm S. Friedman & Co. and invests in startups through women-only Israeli angel investor club NEOME.