Angel investing is a form of early-stage investing in which individuals provide capital to start-ups and entrepreneurs, in exchange for equity in the company.
While angel investing has been male-dominated in the past, there is now an uptick in women involved in angel investing.
Why? Like their male counterparts, angel investing can be a path to financial empowerment and success for women.
The Angel Investing Landscape for Women
The Angel Capital Association reports 22% of angel investors are women. Women often have distinct obstacles in obtaining money and industrial networks. Now, female-led projects, and support networks, are working to change this. They’re bringing more women into angel investing and strengthening the financial landscape.
The Advantages of Angel Investing for Women
The profits and independence from traditional employment that results from angel investments make it an appealing alternative for women. As angel investors, women can diversify their financial portfolios and back female entrepreneurs.
The Barriers to Angel Investing
Funding and networking can be harder for women, especially those who are looking for investors. They can overcome these angel investing hurdles by building investment confidence and expertise.
How? By continuing to think long term, diversifying their portfolios, and consider investing in the market in increments.
Women in Angel Investing
Several women have made a difference in angel investing. The Gotham Gal, Joanne Wilson, has invested in over 90 enterprises. Backstage Capital founder Arlan Hamilton is a pioneer in angel financing, assisting underrepresented founders and closing the gender and diversity gap.
For women diversifying their financial portfolios, angel investing offers excellent returns while also allowing investors to support female-led businesses. The best part? With more women in angel investment, not only will the sector become more diverse and inclusive – it’ll become stronger than ever.