Tag: women entrepreneurs

8 Financing Resources for Women* Entrepreneurs

Post author By LiisBeth
Post date June 21, 2016
No Comments on 8 Financing Resources for Women* Entrepreneurs

All businesses need money to turn the wheels. Here are eight venture funds that target women entrepreneurs.

Article written and submitted by Ellie Wainaina, Kenyan Freelance Writer

It’s 2016 but women still struggle to obtain financing for their businesses. Research shows that companies headed by men will receive over 95 per cent of all investments made in business. Given it’s 2016, this is highly disappointing.

Perhaps one of the major reasons why funding for women-owned businesses is so difficult to obtain is the number of women in senior positions. Women only make up 15.4 per cent of CEO positions and hold 33 per cent of senior management positions. Fewer women in senior positions means fewer women with the means to become future angel investors or partners in investment firms.

Based on the law of averages, men are more likely to find it easier to get the financing they need from investment companies than their female counterparts.

As a female entrepreneur, starting and operating your business may end up being an uphill battle. However, you can get the financing you need by taking advantage of financial resources more readily available for women. Here are some of the resources:

1. The Eileen Fisher Women-Owned Business Grant Program

The Eileen Fisher Women-Owned Business Grant Program awards $120,000 for up to 12 recipients each year. Therefore, the minimum you can get from this grant program is $12,000, which will greatly help your cash flow. To qualify for this grant, your business should:

Be majority-owned and majority-led (51 per cent qualifies as the minimum).
Have revenues of less than $1 million the year preceding your application.
Have been in operation for three years prior to your grant application with financials to show.
Be founded upon the goal of creating social and environmental change.

Applications are open every year in April and May.

2. Kabbage’s Online Loans

Kabbage is an A+ rated online lender that cares more about the health of your business than your gender or even credit history. If you have been in business for at least one year and have $50,000 or more in revenue, Kabbage is a good financial resource to explore an open line of credit.

In order to enjoy the benefits of financing from Kabbage, you will need to open a free account, then link to the online services that you use to run your business, such as Amazon or PayPal.

Once your application has been viewed and approved, you will get access to the line of credit that you need. The loan amounts range from $2,000 to $100,000. You will then be able to access the money on the go—whenever you need it.

You will have the choice of getting your loans on either a six-month or 12-month plan. In order to qualify for the 12-month plan, you need to borrow at least $5,000. The interest fees vary from 1.5 to 12 per cent, which is quite reasonable.

3. Plum Alley Crowd-Sourced Funding

What better way to find financing for your business than from other female entrepreneurs who know what it’s like to struggle?

Enter Plum Alley. This is a crowd-funding site with a difference. It specializes in helping women obtain financing for their businesses from other women or men who want to advance the cause of women in business.

In order to obtain the funds, you will need to open an account, create a project on the platform by providing basic details such as your location, funding goal, and category in which your business belongs. There will be instructions along the way to help you create an effective campaign to get you the financing you need.

In exchange for the money you’re given, you will offer rewards to your investors. This can be anything from a thank-you note to a pre-purchased product that you create with the financing you get.

You definitely should consider crowdfunding via Plum Alley if you are looking to avoid punitive interest rates associated with loans, but are willing to give away something for free.

4. The Union Bank Business Diversity Lending Program

While there are traditional lending institutions that will make it difficult for you to access funding for your company, Union Bank is not one of them. Through Union Bank’s Business Diversity Lending Program, you can access financing of up to $50,000. You can apply online for this loan if you run a woman-owned business and actively manage at least 51 per cent of it.

In order to ensure that your business has access to the diversity loans, your business should have annual sales of less than $20 million. The company you own and manage should also be two years or older and have borrowing needs of less than $2.5 million.

Once you have determined that you meet all the set requirements, you can go about applying online for your business loan.

5. 37 Angels Funding

While the odds of you making it to Dragons’ Den are very low, you can still access investors via 37 Angels, which specializes in seed stage investing. Because it’s made up of over 50+ women investors, you have a higher chance of getting the financing your woman-led business needs to operate and expand. You can then pay it back with interest or offer equity to the investors.

In order to have a shot at getting funding, you need to use the Gust platform to pitch via video. The 37 Angels investors will then call you to determine if your business is a mutual fit.

If that’s the case, the company, as a network, will invest anywhere from $50,000 to $150,000 into your business. Angel investors in this network can also help you raise between $500,000 to $1 million.

The decision on whether 37 Angels will invest in your business or not will come through in four weeks, which is a relatively short time. To increase your chances of getting positive feedback, be sure to apply when your business earns $50,000 to $500,000 in revenue. It will be much better for you if your company is valued at $2 million to $6 million, and if you’re able to make the pitch in person in New York City.

6. Kickstarter’s Crowd-Sourced Funding

If you are looking to dip your entrepreneurial toes into the creative arts or technology industry, then Kickstarter is the online funding resource you should explore. Kickstarter is one of the largest crowd-funding sites online. In 2013, Kristen Bell, the star of the Veronica Mars TV series, and director Rob Thomas, took to the platform after getting rejected by Warner Bros. Through Kickstarter, they sought alternative funding for the Veronica Mars Movie Project and requested people to help fund the film.

Guess what? People did!

The Kickstarter project ended up raising over $5.7 million from more than 91,500 backers. The fact that the movie ended up being made is a testament to the power of crowd-sourced financing for entrepreneurial projects. So, what’s stopping you from doing the same? Why shouldn’t you enlist the help of internet strangers to fund your business dreams?

Make sure you take the time to familiarize yourself with the Kickstarter platform. Sign up, create a project, and determine which category your business lies. Then go about writing details about your business product, state your funding goals and deadline, and wait for donors to fund your entrepreneurial ventures. Most successful projects tend to raise under $10,000, so no dream is too small.

You can offer rewards in return for funding that is given to you. It could be something as simple as a copy of the product item you end up creating, or something intangible in the form of unique experiences.

You will only be charged a fundraising fee for a fully funded project, which is always a good thing if you fall short on your financing goal.

7. Walmart’s Global Women’s Economic Empowerment Initiative

Your business doesn’t have to be in the U.S. for you to enjoy funding resources from that country. There are financing programs like the Walmart’s Global Women’s Economic Empowerment Initiative (WGWEEI) that will stand you in good stead.

The WGWEEI aims to source at least $20 billion from women-owned enterprises in the U.S. and abroad. It also aims to launch and operate a dedicated marketplace for women-owned products.

Perhaps the most noteworthy aspect of the Walmart empowerment initiative for women is the grants that will be made available to you. Walmart aims to provide $100 million in grants toward women-owned businesses over a period of five years starting from 2011. Though this is the tail end of the initiative, you still have a chance to get on the funding boat.

If you have a business that will empower women in your country, and that country is covered under the WGWEEI, then you qualify for Walmart grants. Grants can range from $250 to $250,000, so there’s money to be had for your business if you require financing. However, you have to submit a final impact report when applying for grants. Be sure to read the updated guidelines before you take any step in that regard.

8. Requested Donations from Reddit or Similar Sites

Just as there are many ways to skin a cat, there are also as many ways to obtain financing for your business.

Take Reddit, for instance, one of the most popular online social forums out there. In March 2016 alone, the platform had over 243.6 million unique visitors from 212 countries. That’s impressive! Prior to 2009, whenever Redditors wanted to share their images, they would use all manner of platforms to do so, which resulted in compatibility complications. That was until one Alan Schaaf decided to do something about it. He created Imgur, an image hosting and sharing site that was compatible with the Reddit platform.

Originally, Imgur was meant to be a gift for the Reddit online community. However, Schaaf got serious with what he had deemed a side project and decided to develop it further for all internet users. Money was an issue. But because Imgur offered a service that Redditors really appreciated, they donated money to keep the site going until Schaaf was able to get financing from Andreessen Horowitz, a $4 billion venture capital firm. And that is how the modern version of Imgur was born.

or

Are you wondering why this story is relevant? It’s simple really.

If you have an idea of how to meet the needs of a large group of people, financing should not be a problem. Just the thought that you will be able to solve a major problem is enough to inspire people to finance the development of your product.

Online communities like Reddit are a good place to test your entrepreneurship skills. The very people who donate funds to your growing business will also provide constant feedback for your product. This should help you refine that product until you have something good enough to present to major venture capitalists for more financing. Alternatively, you can use the donations you get from Reddit or other similar platforms to operate your business until you can monetize it effectively.

If you have an online product that will appeal to large audiences like Reddit, don’t be afraid to ask for donations. The worst that can happen is you will get no for an answer. That’s not a life and death matter, is it?

Just because the odds are against you as a female entrepreneur does not mean you should give up. Each day is a new day. As time goes by, the financing options for women in business will continue to increase. You should, therefore, take advantage of every funding resource that comes your way to start, run, and expand your business. The aforementioned resources are just the beginning.

About the author

LiisBeth

Sticking it to Sexism in Gaming

How a digital content company is off-lining patriarchy

October 22, 2020 No Comments

Image of rap star Haviah Mighty, black woman, singing.

Activism & Action

LiisBeth’s #IWD2020 March Playlist: Marching On, Each for Equal

International Women’s Day is about celebrating the social, economic, cultural, and political achievements of women. Attend a rally. March. Listen.

March 6, 2020 No Comments

Allied Arts & Media

Listen Up! July Playlist for Feminist Entrepreneurs

This week, LiisBeth invited Urbanology’s Sadé Powell to curate a playlist for readers looking to reset their entrepreneurial journey—and to discover new music in the process.

July 11, 2017 No Comments

Activism & Action Our Voices Systems

The Wages of Tenacity

By Joan Prowse, as told to Cynthia Macdonald:

Sitting in an airport some 25 years ago, it suddenly became real to me that I’d finally arrived as a filmmaker. With the partners in my fledgling business, CineFocus Canada, I was preparing to embark on a cross-country journey to interview subjects for one of our very first productions. In many ways, it’s a journey that has continued to this day.

Like many women in the film industry, I started out in the background, studying journalism and working as a researcher and production secretary. At first I thought I’d be a TV reporter, but I ended up making documentary films and television shows, as well as running my own cross-platform content creation company.

In the course of my career, I’ve showcased important social issues such as feminism, the environment, free trade, and health care. I’ve also had the good fortune to profile scores of trailblazing Canadians, including women such as Buffy Sainte-Marie, Jann Arden, and Doris McCarthy.

Unfortunately, the exciting path I’ve managed to forge in the film industry remains closed to too many women. I often wonder, with the strides we have made in business, government, science, and the arts, why do some of us still struggle to establish meaningful film careers? More than half of all filmgoers are women, yet 80 per cent of films today are directed by men. Women are under-represented in all facets of filmmaking, such as directing, producing, writing, editing, and cinematography. This is especially true in Hollywood, which is plagued by what feminist industry analyst Martha Lauzen calls “gender inertia.”

Clearly, women need more support if they are to succeed in large numbers. During my professional life, I’ve been lucky to have had great mentors, role models, incentives, and support systems. If real change is going to happen, more assistance of this type is needed. Especially role models. In the mid-1980s, while researching sex-role stereotyping in the television industry for a media company, I witnessed a power struggle between my male and female bosses. It was inspirational to me when my female boss (and first mentor) struck out to start her own production company.

In fact, despite the obstacles, Canada boasts a strong tradition of female role models in film. Filmmakers such as Alanis Obomsawin, Shelley Saywell, and Jennifer Baichwal have been able to crack open issues and bring them to a wider audience. And, until it was shut down by budget cutbacks in 1996, the National Film Board of Canada’s Studio D netted several Oscars, producing landmark films such as I’ll Find a Way and If You Love This Planet. I’ve personally been inspired by Anne Wheeler, who started out making documentaries before turning to features and dramatic television.

In 1987 when I was a brand new filmmaker, I remember seeing director Patricia Rozema give a speech at the Canadian Film Institute. She had been enjoying international acclaim for her breakthrough film, I’ve Heard the Mermaids Singing. “Don’t look at me and think, ‘Oh that’s her. I can never be like her,'” she said. “You have it in you too.” Those words made a real impact on me.

I’m also proud to have given a voice to feminist role models in other fields. My series, Green Heroes, profiled ecological innovators such as Leilani Munter (a professional race-car driver who’s revolutionized her profession by only accepting green sponsors) and Laura Reinsborough (whose non-profit company salvages unsold farm fruit).

Not all of my role models or mentors have been female. Sometimes, the formation of male-female alliances can be the best solution to overcoming bias. One of my early jobs was production secretary on the book show Imprint at TVOntario. My boss, Daniel Richler, showed me that highly original programming could be made locally and inexpensively. During that position, I co-founded CineFocus with three male partners, all of whom were significant collaborators.

Women need to find supportive outlets for their projects. For me in the mid-1990s, it was the Women’s Television Network, now known as W. Geared specifically to programming by and for women, W provided a home for a passion project of mine called Beauty and the Beach. This film explored the women’s movement through the changing swimsuit styles of the 20th century and was ultimately sold to 12 countries on four continents.

I believe that incentive programs are also critical to women’s success. In just two and a half years, the Swedish film industry has managed to achieve gender equality by directing 50 per cent of its funding towards female filmmakers. In Canada, BravoFACT—which funds documentaries and short films—recently instituted a similar rule. But that is one channel, not an entire industry. We need to see more organizations come on board in the same way.

Support groups are great resources; more of them, and more awareness of them, could really change things. One that really enriched my skills as an entrepreneur was the Toronto chapter of Women in Film and Television (WIFT). Their panels and workshops have given me a lot of ideas over the years. I remember one story in particular. A female filmmaker found out the top executive she’d been trying to meet for months was flying to Europe the next day. She bought a first-class ticket to his destination, sat beside him and secured the sponsorship she needed before the plane’s wheels hit the ground. WIFT has definitely shown me that creativity and tenacity can take you a long way.

A newer support group is Film Fatales, run by Toronto filmmaker Chloe Sosa-Sims. This women’s collective meets on the same day each month to discuss concerns they face working in a male-dominated industry. I first encountered Sosa-Sims while participating with her on a panel at the Reel Indie Film Festival in October of 2015. This was one of three panels I’m aware of that convened in the latter half of the year to explore the challenges faced by women in film. It’s a sign that this topic is getting a lot of overdue attention.

Probably the biggest obstacle in my career, and that of many other women, is funding. Whether in documentaries or feature films, the budgets for women-run films are often lower than those on films made by men. And because documentary budgets tend to be lower than features, it’s perhaps no surprise that far more women are found in that field.

A recent joint study by the Sundance Institute and the Los Angeles chapter of WIFT found that “when money and risk get higher, opportunity [for women] gets lower.” This is true in Canada as well. Among the films that receive investments of less than $1 million by Telefilm Canada, 21 per cent of directors are women. When the investment is higher, that percentage drops to 4 per cent.

So while I and other female filmmakers have enjoyed solid opportunities in a field we love, there is clearly more work to be done before we achieve parity with male filmmakers. With a concerted effort from private industry, government funding agencies, and individuals, we could change the number of women making films to truly reflect our population. I hope that time will come soon.

Editor’s Footnote: Joan’s company participated in the Imagination Catalyst (OCAD U’s incubator). Joan’s latest project, GreenHereos TV, produced by her company CineFocus Canada in association with TVO, offers 12 x 30 minute videos which tells remarkable stories of people who acted on their ideas and heroically “ventured forth” to protect our planet. From the celebrity to the everyday person, each story details the different paths and interests the GreenHeroes have taken in their quests to help save the world. Watch it now. Watch it here:

Tags CineFocus, feminist entrepreneur, Film, Green Heroes, women entrepreneurs, Women in Film. inequality

Activism & Action Our Voices

Women’s Entrepreneurship Day: A Closer Look at “Awareness”

Post author By Carly Romano
Post date November 24, 2015
No Comments on Women’s Entrepreneurship Day: A Closer Look at “Awareness”

The Women’s Entrepreneurship Day initiative aims to bring awareness to women’s entrepreneurship through holding an event to “empower, celebrate and support women entrepreneurs worldwide

pitch-growing-city-lisa-von-strummer — Photo from CBC’s Dragon Den

We’ve all been there. Sitting politely in a crowded banquet hall full of people watching someone at a podium go on and on and on. Another speaker comes and repeats the exact same thing – in different words. The cycle continues and after 8 hours of checking the clock, it finally ends and everyone pats themselves on the back for a job well done. All of the tens of thousands of dollars that went into those 8 hours is justified by accomplishing the goal of “raising awareness.”

One would hope that if tens of thousands of dollars were invested in raising awareness, that there would be hundreds of thousands of dollars in ROI, however this is not necessarily the case. It is true that awareness raising is especially important for causes that people do not know exist. Human trafficking, for example, was not a term the general public understood just 5 years ago. Thanks to awareness raising and media attention, the public is slowly gaining an understanding of what it means. There needs to be an awareness of the problem before action can be taken. But what of the topics people are already aware of and are still having awareness conferences for? Can spending tens of thousands of dollars on raising awareness for the sake of raising awareness be justified?

On November 19, 2015, the Women’s Entrepreneurship Day initiative aims to bring awareness to women’s entrepreneurship through holding an event to “empower, celebrate and support women entrepreneurs worldwide”. It might not come as a surprise that the event has 50 speakers all vying for podium time to achieve this goal. However, the connection between raising awareness of women’s entrepreneurship and supporting women remains unclear.

Last year was the inaugural event where New York Governor Andrew Cuomo declared November 19, 2015 to be known as Women’s Entrepreneurship Day. When asked why women entrepreneurs need a proclaimed day, Founder Wendy Diamond responded, “You’ve got Turtle Day, you’ve got Bubble Bath Day. These are real days in the world. So I thought, let’s do Women’s Entrepreneurship Day.”

The Women’s Entrepreneurship Day initiative, however, is not just a one day wonder. The initiative goes beyond the actual day to “bring awareness to the fact that we need to empower, celebrate and support women (entrepreneurs).” There’s that catch-all word again: awareness. So how exactly does the initiative suggest we empower, celebrate and support women? The action plan involves instituting an international certification program that can catalogue women entrepreneurs. The goal being that businesses can display their armband, excuse me, sticker on their storefront so that consumers can easily recognize which businesses are women led. This idea, however, is based on the assumption that the majority of consumers are sexist to favour women over men in business. Taking into consideration the gender gap and the whole impetus for bringing awareness to women entrepreneurs in the first place, smart money says this idea could actually be detrimental to women entrepreneurs if implemented.

Assuming most people know that women entrepreneurs exist, before a solution can be found, the problem needs to be clearly defined. The first part of the problem everyone can readily agree on: there aren’t nearly enough women entrepreneurs compared to men entrepreneurs. The second part is where it all falls apart: why?

The Canadian Women’s Foundation believes that familial obligations, unaffordable childcare, lack of transportation options, and unaffordable senior care are major responsibilities that typically fall to women and make entrepreneurship even less of an economically viable option. They focus on providing programming support in these areas so that women have more employment options (entrepreneurial or otherwise). This explanation focuses on the women themselves and asks why they have not made the choice to be an entrepreneur and comes to the conclusion that it must be their relative poverty to men. The assumption is that when in poverty, it is more difficult to take an economic risk as an entrepreneur.

Women of Influence says that 7% of investment dollars are being invested in female-led start-ups and less than 5% of the decision makers are female. Although not every start up seeks seed money, it is clear that the people with the money and making the decisions are choosing male entrepreneurs 93% of the time and 95% of these investors are male. Women of Influence believes the business environment has been dominated by men and is designed for men to succeed. Sexism by men with money is the cause of low numbers of women entrepreneurs. However, even Women of Influence concedes that this problem is something to work on as a long-term goal. In the meantime, they focus on women’s mentorship programs to help women survive in a male-dominated business world.

The commonality in both of these explanations is sexism. Sexism in familial roles keeps women in poverty. Sexism as favoritism puts women at a disadvantage over their male competitors.

A perfect example of this is Lisa von Sturmer’s famous pitch on the popular TV show, Dragon’s Den. Her company, Growing City, provides composting services for offices in Vancouver where provincial regulations make composting mandatory. Through shrewd business practices she quickly grew her business from $100,000 to $200,000 over 2 years. Watch her whole pitch and pay close attention to Kevin’s comments at 3:11.

“Why don’t (national cleaning companies) just say, ‘here’s our organic service charge at 20 more bucks a month. We’re already cleaning (your office) every night. Don’t need the pretty girl in the blue dress. We’ll take care of it for you.’”

And just like that, all of Lisa’s accomplishments and shrewd business skills were trivialized while simultaneously reducing her to an attractiveness rating. Although it may seem like a harmless comment (and to some, it may even be seen as a compliment) it is this thinking that holds women back from success. If women are viewed as only bodies and their accomplishments tied up with their appearance, it is no wonder that more men are not eager to invest in female entrepreneurial ventures. Their attractiveness has a short shelf life and is not a good long term investment. Instead of seeing the enduring qualities of talent, skill, intellect and tenacity that are needed to succeed in business, they see a ranking from 1 to 10.

As Kevin is rich and in a clear position of power, he felt safe being able to voice his sexist opinions without fear of reprisal, but for every Kevin, there are many others that keep these opinions silent. Arlene (notably the only female Dragon in the Den) even attempted to show her disgust with his degrading remark, but ultimately had to capitulate due to her own precarious position (only female in the Den). Lisa, not being in a position of power at all, ignored the comment and focused on the topic at hand displaying her professionalism and attempting to show through form, what she was not allowed to address in content.

With the women’s entrepreneurship problem defined as sexism, it becomes clear that any program that focuses on supporting women is doomed to fail as it does not address the problem. To solve the problem the focus cannot be on the people being disadvantaged and needs to shift towards the people creating the inequality. Perhaps sexism education in schools, or creative incentive programs focused on the 95% of male investors would go further to balance the scales. So as Women’s Entrepreneurship Day approaches, perhaps it would be more effective to do a little less “awareness raising” and a little more incentivizing equality.

Tags awareness, empowerment, Entrepreneurship, LiisBethOriginal, women entrepreneurs

Systems

Hands Across the Water: Re-inventing Bonds

Post author By LiisBeth Curator
Post date November 9, 2015
No Comments on Hands Across the Water: Re-inventing Bonds

Georgia Tech Ivan Allen College of Liberal Arts launched the Global Women’s Entrepreneurship Institute (GWEI). Working to connect African and Atlanta-based women entrepreneurs in agribusiness, technology, manufacturing and media/entertainment, the inaugural event, years in the making ran from November 1 – 4th.

Participants traveled from Ghana, Nigeria, South Africa, Kenya, and Zambia to join with local participants from the City of Atlanta to take part in intense, high-level training sessions covering topics such as marketing strategies, building and managing wealth and social responsibility.

Dean Dr. Jacqueline Royster is the Dean of the Georgia Tech Ivan Allen College of Liberal Arts in Atlanta. She believes that once women feel the power that they hold, they will know they can use it. She addressed the need for a focus on collaboration, not competition, among women from around the world when it comes to business practices:

“We are in many ways more alike than different. We have to spend the time getting to know personally who we all are and how we can connect and what kinds of things we can do together,” she said. “So that it is a deliberate choice to do what we do so that it is an intentional act to do what we do.”

The fact that women share so many commonalities to their approach to business and entrepreneurship makes this initiative so important. Managing director of the GWEI, DeShawn Jenkins talked about the power of women working together to overcome the similar obstacles they face in entrepreneurship:

“We were learning that women overcoming fear, women taking challenges, women really working together and to have that transatlantic opportunity is something that we really understood,” Jenkins said. “As we climb, we pull up. And so as we are working together and realizing that not only we can do that in our own city, but we can do that in various countries and continents.”

With the success and excitement from this year’s event, Jenkins said that they are already planning the next steps for GWEI.

“There’s been two challenges, one to take it to Ghana and the next to take it to South Africa,” she said

That said the city of Atlanta has been a good incubator for the initiative. According to Metro Atlanta Chamber, Atlanta is ranked in the top ten metro areas for entrepreneurial activity, and women-owned businesses have grown by 63 percent from 2002 to 2014.

Original source: The Atlanta Blackstar

Tags Curated, Entrepreneurship, start ups, women entrepreneurs, WomenInBusiness

Activism & Action Transformative Ideas

The Rise of Gender Capitalism

Post author By Karen Christensen
Post date November 3, 2015
No Comments on The Rise of Gender Capitalism

LiisBeth is proud to re-print this amazing interview with Sarah Kaplan, Professor of Strategic Management at the Rotman School of Management (University of Toronto) by Karen Christiansen, Editor-in-Chief of Rotman Management magazine at the University of Toronto.

Sarah’s recently published article, The Rise of Gender Capitalism, published by the Stanford Social Innovation Review, Fall 2014, can be found here:

Karen: You have been researching an emerging movement that lies at the nexus of gender and investing. Please describe it.

Sarah: What we are seeing is a variety of initiatives that are examining ‘how capital is deployed’, and making sure that it’s done in ways that help to achieve economic justice for women and girls. All sorts of loosely-connected organizations and individual actors are involved, but they’re all aligned around making progress in this area.

These initiatives recognize that only six per cent of venture capital funding goes to women-led businesses; that only a small percentage of participants in start-up accelerators are women; and that there are very few women in leadership positions in large financial institutions — or any companies, for that matter. The fact is, around the world, women have much less access to capital or even basic banking and financial products than do men, and this is hurting the global economy. The goal of these
initiatives is to create growth, prosperity and economic value by rectifying these problems.

Karen: What does it mean to invest ‘with a gender lens’?

The way we see the world affects what we do in the world, so the lens aspect is about shifting the way we see things. The gender part of it is about making sure we consider how what we ‘see’ is influenced by gender. When you put the two together, investing with a gender lens means using a gender analysis to uncover hidden opportunities and recognize bias in the deployment of capital. Clearly, it can’t be true that only six per cent of potential start-ups should be led by women. There is a bias there. Recent
research shows that if you take an identical business plan — same PowerPoint, same content — and have it narrated by either a man or a woman, 60 per cent of investors will choose to invest
in the man’s business plan.

It’s not that anyone is trying to be sexist; these are implicit biases,and both men and women possess them. So, this approach says, why not recognize that these biases exist and begin to deploy capital towards opportunities that are being overlooked? It can also apply to the creation of products and services. Companies across industries should be thinking more carefully about the different requirements of men and women. For years, car companies tested their vehicles with female crash test dummies in the passenger seat; only recently have they started putting them in the driver’s seat. It was as if, somehow, women weren’t driving cars!

In some industries, like pharmaceuticals, there are very high stakes. In the drug-approval process, firms have been required to test on both men and women, but they have not been required to report the gender-disaggregated data. As a result, we don’t know if men and women should be taking different dosages, or if interactions might occur due to different hormone levels. We’re only learning now, for example, that some sleep drugs have radically different effects on men and women. Paying attention to
gender-disaggregated data would enable pharmaceutical firms to provide much more effective products — and reduce their liability. There are all sorts of similar hidden opportunities just waiting to be found if you look at investments through a gender lens.