Women Invest too

Historically dominated by men, I’m happy to say that the landscape of angel investing is evolving, with more and more women taking the plunge into the world of entrepreneurial support and wealth creation. 

And while there is more work that needs to be done, I’m proud of our work to grow the number of females in this space. Not many people know this, but Angel Fest actually started as an investing event created for-women, by-women. Reflecting back to the summer of 2021, I decided to start Angel Fest to educate women about angel investing. I remember that very first Angel Fest fondly; we had two in-person and two virtual events, all geared toward empowering and educating women about angel investing.

We are about to hold our fourth iteration of Angel Fest, by which we now welcome any and all folx interested in angel investing. Yet even as we have expanded Angel Fest beyond a female audience, many are surprised by how well attended Angel Fest is by women. And that is because women were never an afterthought! Last year at Angel Fest 2023, a sponsor ran up to my business partner, Reed Robinson exclaiming, “There’s a line in the women’s bathroom!”. This seemingly simple statement says it all. The physical presence of women was felt and visible.

Besides attempting to solve this participation gap between women and men in venture, I’d love to point out the unique advantages that women have in this space when they participate as investors:

1. 1. Access to Untapped Markets

   Just as men often have a better understanding of markets that cater to men, female investors often have a better understanding of products, services, and markets that cater to women. And this is pretty powerful when you also consider, women drive 70-80% of all consumer purchasing through buying power and influence. But women control more than just household spending. According to Nielsen, by 2028, women will own 75% of the discretionary spend. This can lead to investments and support of companies that have a deeper understanding of female consumers' needs and preferences.

   2. Support for Female Founders

   Surprised to hear that women support other women in the entrepreneurial space? If your answer is no, me neither. Studies have shown that female investors are more likely to support and invest in female-led startups. And thank goodness for this, because, according to the Harvard Business Review, less than 3% of venture capital go towards women-led startups, and this number is even less for women of color. Female investors can help address the funding gap in entrepreneurship not only by providing investing in  female founders, but also by providing mentorship and networking opportunities.

   3. Increased Deal Flow
   Female entrepreneurs may feel more comfortable approaching angel networks or seeking investment when they see more representation involved. This is important when considering women entrepreneurs grew by 47% in 2020, a significant jump from 29% in 2019, according to CNBC. This increased representation can create a more inclusive environment that encourages female founders to pursue their business ideas and seek funding. And in turn, this increased representation in the pool of entrepreneurs can also lead to a more varied and robust deal flow for angel investors.

If you’re interested in learning about or getting involved in angel investing, I’d love nothing more than for you to attend Angel Fest 2024 on May 2. Angel Fest is the perfect opportunity to learn about the special sector of investing in startups and connect with others who want to do the same. Get your tickets for Angel Fest here. 

And if you can’t make it out on May 2, let’s still connect. Reach out to me at mickayla@groovecap.com. I host cohorts, in collaboration with a handful of partners, to help train up underrepresented investors and would love to get you plugged in. 

Remember, we’re in this together. I can’t wait to see where we go.