Why are female angel investors good for innovation and the economy?

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Only a small percentage (less than 1%) of companies receive angel funding. Studies have found that startups with angel funding are more likely to survive. Such companies employ more people and are more likely to exit successfully. Economic development needs angel investors, especially those who understand neglected markets.

With the rise of female angel investors, more women-founded companies are getting funding. In 2017, nearly a quarter (24%) of angel funded companies were founded by women, up from just 15% in 2002, according to the Center for Venture Research. This is largely because the proportion of female angel investors has increased over the past decade — from 12% to 20%. According to the Angel Capital Association’s U.S. Angel Investment Report, 51 percent of female Angel investors care about the founder’s gender, compared with only 6 percent of male Angel investors. The reality is that, in the vast majority of cases, men invest in entrepreneurs who look like them.

Why are female angel investors important? Because they can see a market opportunity that men are ignoring. To open up new markets, launch new products and support promising companies, we need more women angel investors. Female angel investors do things differently from male angel investors. As a result, a number of organisations have emerged in the past decade to help women understand angel investing and encourage them to invest in ways that are right for them. These include 37 Angels, Hera Angels, The Jump Fund, Next Wave, Pipeline Angels, Plum Alley and Portfolia, to name a few.

“Women are very interested in investing in startups.” Portfolia founder and CEO Trish Costello. Portfolia is a small venture capital firm that invests in verticals such as women’s health, active aging, consumer technology, inclusion and diversity, and food and agricultural technology. You can invest as little as $10,000 and learn about the angel process and how to work with others, or you can invest in multiple companies. Costello is also the retired CEO of the Kauffman Fellows Program at the Center for Venture Education.

Interestingly, “women join local angel investment teams, where there are very few women, and soon leave because the way things are done is traditional and doesn’t fit their needs.” Costello continues. Women angel investors are more likely to evaluate a company comprehensively, are more willing to work with others in a social group, and are willing to support companies that meet their needs.

Women recognize that being angel investors can be a powerful driver of new products and solutions that address women’s needs. Some female angel investors are frustrated to find that great companies with unique, in-demand products often fail to get funding simply because they are targeted at women. The male investors on the team were not aware of these opportunities.

Costello says that women angel investors have proven themselves to be highly effective and successful because they don’t conform to stereotypes. They like to make smaller investments and invest in more companies to spread their risk. In angel investing, this is a best practice.

There is a common perception that women take longer to make investment decisions, but the truth is that women make decisions quickly once they have the opportunity to make small investments in multiple companies. At Portfolia, an investment took an average of six weeks and some investments were completed in as little as five days. For angel investors, valuations have generally risen. Women-owned companies don’t get enough investment, which means their valuations are lower, and they deliver higher returns on investment. Such companies are good investments for both male and female investors.

“Huixin Cup” Emerging technology + Internet Innovation Competition is in hot registration

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Field of competition

(1) Special competition of emerging scientific and technological Achievements: artificial intelligence, big data, cloud computing…

(2) Internet Industry Model Competition: Internet and mobile Internet and Public Services;

(3) Young Maker Competition: With science and technology + Internet as the main topic, the projects that can reflect the innovation, creation, creativity and creativity of contemporary college students and young makers are acceptable.

(4) Science and technology + culture and art special competition: science and technology + culture, with science and technology to show the heritage, protection, innovation, appreciation, usability of traditional culture and art, modern culture and art of a certain factor or several points

⑤, science and technology + social public welfare special competition: cultural communication, talent training, environmental protection, disabled protection, youth growth, care for the elderly, human health, nature protection, animal protection