Venture Capitalists Dislike Women More Than They Like Profit
AltFi | Hannah Duncan | Aug 22, 2022
Image: Pexels/Andrea Piacquadio
It’s enough to make you want to hurl your skinny latte at the wall. Preferably a freshly painted white one. 40 per cent of all early-stage fintechs are led by women. Yet investors – blinded by prejudice – are only willing to part with 4 per cent of funds. It’s not a coincidence. It’s a disgrace.
Esteemed psychologist and fintech leader Elin Helander:
- A concrete example is that if a man comes in wearing a fancy, expensive coat, it’s seen as a sign of success. Whereas if a woman wears an expensive, fancy coat, [investors] think she’s not good at handling money – or she’s spending a lot. Along with other researchers, Helander has conducted extensive studies into gender-related bias in business.
- Our brain is designed to put everything into categories bBut these categories easily turn to prejudices. Just because you acknowledge them… it doesn’t mean they go away.
- Across investment rounds, women are frequently interrogated about their homelife too. A hurdle most men do not have to jump:
- “Quite often I was told that because I have four children, I’m uninvestable”, reveals Gemma Young, founder of the award-winning Women of Fintech community and Chief Growth Officer at TechPassport. “But there are just as many male parents as female parents”.
See:
What’s more, the latest findings from Innovate Finance show that female-led fintechs receive just a microscopic 4 per cent of fintech investment in the UK. It’s SO wrong. It’s blatant sexism. It’s deeply unfair. And – stupidly – it’s also hurting the investors themselves.
Investors are missing out on a lot of money
Like smashing a cup of coffee against the wall, investors are wasting resources, destroying opportunities, and making one hell of a mess. For god’s sake. The solution is obvious. We urgently need investment in female-led fintech. It’s time to end the antiquated thinking and start opening the wallet… Your profit margins will thank you for it.
Continue to the full article –> here
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