There has been a constant impulse for more women to join the investing industry, and recent studies show that the number of venture capital (VC) women investors is gradually rising. According to CB Insights’ rankings, women were among the investment teams of 17 percent of the top twenty corporate VC companies in 2014. Eleven (11) percent of the top twenty VC list of 2014 as ranked by CB Insights was comprised of women. A Babson College report showed that the nationwide average of women VC investors is about 6 percent. Therefore, the number of women in corporate VC companies is higher than those in general VC companies.
Eleven (11) percent of the top twenty VC list of 2014 as ranked by CB Insights was comprised of women.
One of the reasons attributed to the higher number of women in corporate VC companies is that these companies are newer and hence have more flexibility to allow women to fill their investment benches. The number of new corporate VC companies making their first-time investments in 2015 is projected to surpass the 70 new corporate VC companies that were established in 2014. This increase means more corporate VC openings for women to fill than in traditional VC companies.
There is a lot of financial power in corporate VCs. In addition, these companies receive significant support from leading distribution channels and experienced business teams that are always ready to add value to startup companies that are designed to scale.
Most of the women corporate VCs are more accessible, and this might have a great impact on the VC community if more women get on the investing tables. This makes it essential to have women at the investing table at every phase of equity investing. A Halo Report indicated that 22 percent of angel investors in the US are women. This has largely contributed to the increased supply of early seed capital, mainly to women entrepreneurs.
If more investment opportunities are passed to corporate VCs, the number of women entrepreneurs is definitely going to increase at every stage of investing.
The number of women in corporate VC investing would also increase further if women corporate VCs adopt the male corporate VC’s strategy of using their platforms to establish their own venture companies.
Considering the interrelation between different stages of investing, it is likely that women have more power to facilitate connections than people realize. If more investment opportunities are passed to corporate VCs, the number of women entrepreneurs is definitely going to increase at every stage of investing.