Women Entrepreneurs and in Capital
Women’s Success As Entrepreneurs Is Proven, But Investment And Access Are Unequal
Overview
Partners
Vision: Success is the ability of more women to access venture capital to accelerate their growth, and to have the opportunity to work with a larger number of women-owned venture capital (VC) firms who are focused on helping women raise the dollars they need to achieve growth. The Women Entrepreneurs and Access to Capital group has a laser focus on increasing the revenues of businesses owned by women of color. Each partner organization has a focus on increasing participation and membership among women of color, and the initiatives to accelerate growth and increase access to capital are also targeted to women entrepreneurs of color.
Outlook: According to Pitchbook, US startups founded solely by women raised nearly $6.4 billion of venture funding in 2021, 83% higher than the total raised in 2020. One contributing factor might be the slight increase in the number of women sitting on the investor side. In 2019, only 12% of US-based checkwriters were women. In 2021, that increased to 15.4%.CNBC reported that women-founded companies are outperforming the market, with their value rising 143.6% from 2020. Women of color are starting businesses at a faster rate than businesses owned by other women; however, average revenues for businesses owned by women of color continue to lag behind. 42% of newly created women-owned businesses are started by black women. Latinx women represent 31% of newly created women-owned businesses, yet only 4% of the female founders who raised equity financing were black and only 2% were Latinx.
Women succeeding as entrepreneurs is essential to our mission and vision of equality and parity. WBC seeks:
- A 20% increase in women-owned businesses generating $5 million or more by 2025
- The average revenues for minority women-owned firms grow by 25% by 2025
- The percentage of venture capital available to women founders doubles by 2025 from 2.3% in 2018
Resources
- Women’s Capital Summit
- Fundamentals of Capital Series – Babson College’s Center for Women’s Entrepreneurial Leadership, in conjunction with Women Business Collaborative and Wells Fargo