A 2018 report from Boston Consulting Group found that female founded businesses deliver US$2 revenue returns for every US$1 invested.
Funding for nearly 7000 Agri-FoodTech startups has been secured since 2012.
And yet, in 2018, only 3% of total dollar funding awarded in the sector went to female-only founded ventures. Allison Kopf explains:
“There are structural, internal and external factors in play. Everybody has talked about unconscious bias. Whether or not people are aware of it, there’s a general bias that works against women, and members of other minority groups.
“When pitching, women tend to get asked “detractor” questions, whereas men get asked “promoter” questions; they tend to be positive versus negative questions and it’s hard to pitch against detractor questions. In fact, it’s almost always an entirely uphill battle.
“There are also structural issues. There is a lack of women in venture roles and a lack of networks for women who are trying to get to investors. The industry works on warm introductions, so you have to have a network by nature.
“There’s a huge first-time founder gap, which creates a cold start problem: how you go from zero to one in a space that’s built against you? Things we can do to fix that? We can work to build networks for women and look at how we get more women into venture capital roles.
“There’s going to be a massive wealth shift from men to women over the next few years, just based on the demographics of inheritance and family funding. Women will soon control a huge amount of wealth that we’ve never controlled before, and yet we’re not investing. So, we need to support women in getting into both founder and funder roles, and amplify the voices of women who are already there.
“The upside of these negative statistics is that things are changing. There’s never been a better time, as a woman, to start a company or think about getting into investing. That trend will hopefully only continue.
“It’s hard, things won’t change overnight. That 3% figure will not become 50% tomorrow. But the more that we can support each other, the more likely it is that 10 years from now we can look back and be proud of how much those numbers have changed.”