There's a quiet movement gaining momentum: increasing the number of women investors. As we see more women taking reins of companies and filling seats on corporate boards, the number of female investors has lagged. Studies show that women make up just 10-15% of angel investors and venture capitalists. Fortunately, this is beginning to change.
For companies with high growth business models, investment patterns generally follow a path of bootstrapping, friends and family funding, taking angel investments, then seeking venture capital or corporate investments. While it's not difficult to imagine a woman investing in the company in a friends and family round, the path gets more tenuous at the angel investing stage. Angel investing has high barriers to entry both personally and professionally. It requires not only existing personal capital to invest, but also a savvy for a particular industry, possible success as an entrepreneur in that industry, an understanding of the business side, and a collaborative network of like-minded investors. One deal as an angel investor can require a hundred of hours of time on deal screening and due diligence, with only a 10% likelihood of success. Seasoned angel investors generally invest in dozens of companies over several years, spreading the risk. It takes moxie, a passion for entrepreneurs or startups, a high level of risk tolerance, a strong stomach, and a large pocketbook.
To read the full, original article click on this link: A Wave of Angel Investing Organizations Focuses on Women - Sarah Granger - Harvard Business Review
