What’s Hot & Cool? #18: Women Funding Women
Helping one another has never been so profitable.
What’s happening? Female investors are increasingly setting their sights on companies founded by other women. This trend is driven by what Quartz Media dubbed the “Estrogen Effect:” studies show a correlation between women in leadership positions and company profitability. Women are banding together to create and fund new ventures.
Why should you care? It’s time for women to share a piece of the spotlight! Until the 1988 Women’s Business Ownership Act, all women founding new companies needed a male co-signer for their venture. Thankfully, women are making up for lost time in a big way: they open around 887 new companies per day. However, only 10-15% of investment money goes toward female-founded businesses. It’s time to support a new generation of entrepreneurs.
Who’s leading? Shelly Kapoor Collins, 2013 honoree of Forbe’s “40 Women to Watch Over 40,” founded Shatter Fund in April 2016. The fund promises to help “shatter” the glass ceiling by providing financial support to female entrepreneurs, referred to as “Untapped Unicorns.” With a focus on AI, education technology, financial technology, and digital health, Shatter Fund is creating opportunities for women in tech.
What can you do? You don’t have to be an investor to support female-run startups. Make your dollar count by spending it with companies like GlamSquad or seeking healthcare through Maven. Most importantly, take care to mentor young women in your field: women creating opportunities for each other shouldn’t be just a trend.