We have an historic opportunity to accelerate that goal, with the transfer of intergenerational wealth already underway.
How do we harness women's growing economic power to steer more capital to women founders and funders?
By Jeanie M. Barnett
We’ve written a lot in this space about what needs to be done to close the wealth gap for women. One significant way—and integral to our mission—is to build women’s wealth by steering more capital and investments to women founders and funders, and expand the ecosystem of women investing in women.
Now, we have an historic opportunity to accelerate that goal, with the transfer of inter-generational wealth already underway. Recent estimates claim upwards of $84 trillion changing hands to the next generation over the next two decades.
The majority of that wealth will be in the control of women.
Harnessing that wealth to close the women’s wealth gap is the focus of a new statewide initiative in California. Launched in late October by First Partner of California Jennifer Siebel Newsom and co-chaired by GBC Partner Katherine Rice, the California Women’s Wealth Advisory Council is bringing together some of the best and brightest minds in business, finance, and government.
Together, they will fast-track solutions to the economic barriers women still face that run the gamut from more equitable pay to teaching financial literacy to our kids, to steering more investments by high-net-worth individuals in women’s enterprises.
It makes sense that California would take the lead in this growing movement for women’s economic equity. The state boasts the fourth largest economy in the world, has the largest number of public pension systems, and is a global epicenter of tech innovation, especially in AI. It’s also the nation’s hub for venture capital—and has the highest number of women-owned firms in the US.
Recognizing “representation as a competitive advantage that drives stronger returns and innovation,” more women are launching their own funds to invest in women and underrepresented founders.
What doesn’t make sense? Women still hold a smaller share of total business and household wealth. Women represent a sliver of decision makers in asset management and VC, and receive a parsimonious fraction of venture funding.
That’s not good for innovation, and it’s not good for the industry. A recent study from The Milken Institute, “The Missing Billions,” crunches the numbers to demonstrate the deleterious impact of women’s under-representation as partners and asset managers in VC.
Yet, there is progress in the VC industry toward gender parity, according to All Raise. Its recently released annual report shows that last year, women represented about 19% of partner roles—the highest proportion ever.
Barriers persist, however, especially in megafunds. Recognizing “representation as a competitive advantage that drives stronger returns and innovation,” more women are spinning off their own funds with “bold new theses” to invest in women and underrepresented founders. Get the report.
California has already made strides in implementing policies to shrink our persistent, gendered wealth gap. These include equal pay and anti-bias in hiring initiatives for employers, and the mandatory teaching of basic finance in all public and charter high schools throughout the state starting in 2027.
GBC Founder Linnea Roberts is a fierce advocate of equitable education for all children, and we strongly agree with the First Partner’s assertion that “financial literacy is fundamental to equity, empowering young women and men alike to become confident investors, entrepreneurs, and decision-makers.”
The Advisory Council will build on this foundation to galvanize more capital to invest in female fund managers and founders.
Collectively, this is a powerful way we will move the needle and close the wealth gap for women. We will be reporting on the progress of this initiative and calls to action in the coming months.
Read more about what we’ve been up to in Q3 and Q4 here.