The Power of Women in Venture Capital

Venture capital doesn’t just create wealth, it shapes the future. Start-up funding decisions have the power to steer innovation, drive the direction of economic growth, and influence the companies and products that impact our daily lives. Read on for insights from tech industry executive, investor, and thought leader, Lilia Shirman, on how women can command more of the power of venture capital and why now is the time to do so.

January 21, 2025

By Lilia Shirman – Founder and Managing Partner, Falcon Peak Capital

 

Venture capital doesn’t just create wealth, it shapes the future. Start-up funding decisions have the power to steer innovation, drive the direction of economic growth, and influence the companies and products that impact our daily lives. 

As more women become venture investors, they wield more of that power. Whether as angel investors, venture fund limited partners, or fund managers, women direct capital to a wider community of founders, fuel solutions to a broader range of problems, and create more leadership and impact opportunities for themselves. 

How Women Gain from Participating in Venture Capital

  1. Drive Innovation: Over 90% of the patents and R&D spend in the U.S. come from venture-backed companies. These firms drive the direction of industries from healthcare and financial services to climate tech and media. Venture investors directly influence such innovation, selecting which problems get solved, who solves them, and how. Women investors often fund start-ups rejected by traditional male-led VCs. Just a few examples of innovators who owe their existence to the early support of women investors: 
    • nVision Medical, a pioneer in early detection of ovarian cancer that gave investors 10x returns when acquired by Boston Scientific  
    • Bumble, the dating app that empowered women and completed an $8 billion IPO 
    • Cognition Therapeutics, which develops drugs that treat neurodegenerative disorders including dementia 
  2. Build Wealth:  In the next 20 years, women will inherit $30 trillion in generational wealth, and  already control more than half of U.S. stock ownership. Start-up investing, while high-risk, is an important diversification strategy with potential for outsized returns. High net worth individuals (those with assets of at least $1million not including their primary residence) typically allocate over 20% of their assets to venture investments. 
  3. Learn and Grow: Venture investors have almost limitless opportunities to learn about new technologies and evolving industries. They hone critical skills while evaluating business models, assessing founders, negotiating deal terms, and mentoring founders. Over time, observing how growing companies face challenges and thrive or fail, investors develop strategic planning, decision-making capabilities, and foresight.  
  4. Expand Leadership Networks: Women investors connect to innovators, entrepreneurs, and fellow investors. These relationships provide avenues to advance existing business goals, and open doors to new industries, and additional investments and leadership opportunities.
  5. Advance Career and Business Success: Investors get the first look at emerging trends, new technologies, and market shifts. Business leaders can leverage such insights to make better strategic decisions, pivot careers, expand their spheres of influence, and fast-track their leadership journeys.  
  6. Transform Workplaces and Society:  When they back and advise founders, serve on corporate boards, and participate in networks of business leaders and decision-makers, women investors shape new leadership paradigms and shape the cultures of emerging companies. MSCI World Index found that organizations with at least one woman on their board are less likely to be caught up in corporate scandals. Women investors and leaders drive stronger, more inclusive work cultures, and higher accountability.
  7. Catalyze Gender Equity: More women participating in the venture ecosystem helps bridge the funding gap for female founders, and encourages more women to become entrepreneurs. A more diverse venture community creates a virtuous cycle that leads to innovation that benefits society and shapes a more equitable future. 

How to Get Started

  1. Start Learning:  Build a foundation of knowledge about how venture works: ways to invest, what to look for in start-ups, and how to maximize returns. 
  2. Develop a Strategy:  Create a personal investment thesis. Clarify why you want to invest in venture, how much time and effort you’re able to commit, what types of companies you want to back, and how much you can safely allocate to this  high-risk asset class.  
  3. Build Your Network: Join angel groups, attend pitch sessions, and connect with other investors to create access to better deals and deepen your investing expertise. 

Start Learning Now

To empower more women in commanding the power of capital, I’ve partnered with Athena Alliance to launch Athena Academy’s Become an Investor Course. This nine-week program equips participants with the knowledge and confidence to navigate venture investing –  from sourcing and evaluating deals to understanding venture economics and negotiating term sheets. 

If you’re ready to step into the world of venture capital and make a lasting impact, visit this page to learn more.

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