An approximately $40 billion market, venture capital (VC) and principal trading in the U.S. has seen tremendous growth of an 8.2% increase since 2016. According to The Untapped Potential of Women-led Funds report by Women in VC, there is still much opportunity in the awareness and support of female-led VC funds. Of the entire market, only 5.6% of U.S. VC firms are women-led, only 4.9% of VC partners are women, and only 2.1% of VC firms are founded by women of color.
As the founder and Managing Partner of EY Ventures Group, I am on a mission to disrupt the statistics, focusing on the importance of diversification by bringing more awareness and funding for women-owned brands, especially those of whom come from diverse backgrounds.
I have experienced first-hand the challenges of:
- being new to the VC space,
- receiving a lack of resources on best practices,
- and being a Filipino-American founder and partner.
Through countless efforts of research, networking, and connecting with other women VCs, I found some alarming, yet opportunistic, statistics:
- Only 9.65% of decision-makers in U.S. VC firms are women
- Companies founded solely by women receive only 2.3% of total capital invested
- Approximately 74% of VCs in the U.S. do not have a single woman on their team
- Fewer women are becoming partners in starting their own firms with a decrease in 21% to 17%, while men have a higher percentage of 24% on becoming a partner.
Therein lies the question, how much of an impact do women in venture capital have in the space? According to the Harvard Business Review, VC firms with female partners witness an average of 10% more profitable exits. Goldman Sachs research also attests to the outperformance of female managed funds compared to male run funds. Not to mention, The Kauffman Fellows Report found that women-led teams generate a 35% higher return on investment than all-male teams.
Supporting women in the VC ecosystem
It’s time for more thought leaders to take action in support of women-led funds and women VC partners. Here are some ways you can be a part of the movement:
Educate others on the importance of women-led funds and businesses
To increase awareness for women-owned brands who may be seeking funding or strategic support, I use my podcast The Drift, available on Spotify and Apple Podcasts, as a means to connect and expose the power of women in business. In addition to the community and networking aspect, I leverage my podcast to simply learn from other powerful women who are redefining the business of health, sports, and technology.
Join communities that provide support for women-led funds and businesses
Organizations like Women in VC, the Female Founder Collective, and All Raise, are seeking to amplify women’s voices while also providing support and resources for all stages.
Conduct a diversity audit for your team
We are at a critical time where applying the JEDI (justice, equality, diversity, and inclusion) principles are not just a necessity but are also the right thing to do. Deploying a diversity audit will enable your team to see an unbiased look at the conditions of your workforce and also provide clear action plans on how to improve your environment.
Network with women VCs
The more powerful women we promote, the more light we shed for future generations. “Businesses are built on relationships. If we want to change the narrative in favor of women-led funds or brands, we need to build the right relationships with colleagues – and those challenging us – in order to strengthen our position” said Eloiza Tecson.
Eloiza Tecson is the Founder and Managing Partner of EY Ventures Group, a venture capital firm dedicated to moving early-stage brands and people forward at scale in the health, sports, and technology space. Being an emerging manager with an ethnic background, Eloiza seeks to challenge the venture capital industry by promoting women investors and brands with an aligned goal of helping people live healthier lives.
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