Subscribe
Previous Post
A new study by the Center for Venture Research found that women are more likely to take financial risks when surrounded by other women. In other words, if you want a woman to invest her money, you better get a whole group of them to participate.
For the longest time, the venture world only saw women “making only 5 to 10% of venture capital partners and 15% of angel investors.” The reason was usually chalked up to the fact that, on average, men are far more aggressive and willing to take risks than their female counterparts.
When data was analyzed from the years between 2000 and 2006 of 183 angel groups, it was found that groups that were “made up with 10% women or more” these women were more likely to investment not only more often, but were even investing far larger sums.
The Center for Venture Research explains this behavior with the “stereotype threat.” When fewer women are in an angel group, women theoretically behave in ways which accentuate gender stereotypes — that is, being more cautious investors. However as the number of women increases, the threat is minimized and women shed stereotypical behaviors.
If you subtract the stereotypical threat by adding more women to the pot, their desire to become investors are increased.
Takeaway for businesses and startups looking for investors? Rally up all the women you know who have considered investing, but have feared it in the past. Allow them to inspire each other and feed off each other’s energy. There are many women out there with the cash to invest in projects and companies in which they believe, they just need a nudge, and that nudge is their fellow women.
