Gender Lens Investing: Addressing the Funding Gap for Fund Managers
Written by Liv Kronemeyer
Much like the demand for ESG-driven investments, LPs play a pivotal role in driving gender equity by investing in women-led funds. According to GenderSmart, there is a correlation linking gender - and other forms of diversity - with improved financial performance. And in a 2019 study, it was determined that firms with greater gender diversity outperformed with greater return and less risk.
Despite the growing body of evidence linking gender diversity with improved financial performance, only 12.0% of venture capital decision makers in the US are women. The reason for this gender funding gap? The inconvenient truth: people are more likely to give money to people who look like them.
In an effort to address these funding gaps, we launched the “Advancing Diversity in Asset Management” showcase series, to create a platform for diverse GPs to connect with LPs. As a continuation of this series, Gratitude Railroad and Align Impact co-hosted the Gender Lens Fund Manager Showcase, featuring 10 compelling gender-lens managers raising first and second private funds with diverse impact and investment theses.
To learn more about the Gender Lens Fund Manager Showcase, check out the event recap, or watch the full recording. If you are passionate about this topic, we encourage you to read this report: Project Sage 4.0: Tracking Venture Capital, Private Equity, and Private Debt with a Gender Lens.
If you’re interested in connecting with us about this topic or have suggestions for funds to consider, please email Jessie Tang.