Women-Led VC Funds Look for Investment Profits - The Minute

Women-Led VC Funds Look for Investment Profits - The Minute

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Only 6% of U.S. VC fund partners are women. That's about to change http://3bl.me/7ya5ts via @3BLmedia #CSRminute
Thursday, April 9, 2015 - 4:30pm


CONTENT: Multimedia with summary

The venture capital business is the most macho sector of the majorly male Silicon Valley business culture. Female partners make up just six percent of U.S. VC fund partners, according to a Babson College study. Of the 92 most successful VC firms surveyed by Fortune magazine, women made up 4.2 percent of the total partners. Seventy-seven percent of VC funds have never had a female partner, according to Harvard Business School. This gender inequality is about to change.

Experienced, financially successful women have now set up their own VC funds. They include Cowboy Ventures, Aspect Ventures, Broadway Angels, Illuminate Ventures, Forerunner Ventures, and Aligned Partners. Current or former Twitter executives have launched #Angels, an investing network for women. While not focusing solely on women-led businesses, these firms receive more pitches from female entrepreneurs and therefore fund a higher percentage of such start-ups. They are also exploiting a bottom line business opportunity. Because so many legacy VC funds have grown to late-stage companies, smaller investors who focus on financing early-stage companies are finding profits while making a gender diversity correction.

I’m John Howell for 3BL Media.

Video source: Women-Led VC Funds Look for Investment Profits