Listen to the Momentum Investing's episode on:
Learn more about Momentum Investing:
Despite the disproportionate amount of funding being funnelled to male-founders, women-founded startups have been shown to deliver higher returns, "generating 10% more in cumulative revenue over a five-year period", according to a recent BCG study. Considering women represent over 40 percent of all entrepreneurs in the US, and the fact that diverse teams have been shown to be more innovative, Morgan Stanley estimates that "investors are missing out on businesses worth $4 trillion in revenue annually by not investing in more female- and minority-led enterprises".
More capital needs to be in the hands of women entrepreneurs and founders, not only because of the significant ROI that can be gained by investing in diverse and women-led companies, but also because of the headway that can be made in achieving the triple-bottom-line. Women-led companies have been shown to be more likely to prioritize corporate environmental and social responsibility, an important leadership consideration, considering the increasing trend of socially conscious consumers.