Women and Gender Lens Investing – Measurement Matters!

There is growing interest among investors and wealth management funds in the US to identify gender oriented investment opportunities.

Especially given a recent article in Fast Company which uncovers the nasty effects of gender bias on investment decisions. Aided by the growth of new investment platforms it is becoming clear that when data, not humans, guide funding, women receive more VC investments. In other words,  too often gender bias interferes with rational judgement,women entrepreneurs receive less funding and ultimately the losers are the investors themselves and the economy.

How do we know if a VC firm is addressing gender? Unfortunately, existing measures of gendered impact are often vague and implied rather than based on concrete data. For example, VC firms may say they fund companies that support gendered balance yet without a standard measurement, there is no ability to compare their claims to other VC firms in an objective way. This results in a lack of transparency and comparability that limits the ability to distinguish between VC firms portfolios in terms of their gendered impact.

To fill this  knowledge specifically for early-stage gender oriented VC funds in the U.S., ACG Inc is participating in a Kauffman Foundation  funded project together with True Wealth Ventures  through George Mason University. The pilot study aims to provide a roadmap for how to standardize metrics for women’s leadership in venture capital funded portfolios that could be used not only to inform investors but also to compare and track performance.

To find out more see the recent blog by Sara Brand posted on Women Effect.

Blog reposted from www.acgimpact.com

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