The value of investing in women founders: GingerBreadCap Fall 2019 newsletter

Happy Autumn!

We’ve been thinking a lot (as usual) about the value of investing in women founders. Why do we believe women-led startups are a better bet?

It’s not just our gut. A growing body of evidence shows that VC-backed businesses founded by women deliver higher revenues and outperform male-led businesses.

A study last year by the Boston Consulting Group (BCG) found that women-led companies generated 78 cents for every dollar invested, compared to just 31 cents generated by male-founded startups.

The study also noted that organizations with a higher percentage of women in leadership roles outperform male-dominated companies. And they do more with far less.

“Investments in companies founded or co-founded by women averaged $935,000–less than half the average $2.1 million invested in companies founded by male entrepreneurs. Yet, women-led startups actually performed better over time, generating 10% more in cumulative revenue over a five-year period,” the study showed.

BCG followed up this past summer with another report projecting that if women entrepreneurs worldwide participated equally with men — if women entrepreneurs had the right support — another $2.5 to $5 trillion could be added to the global GDP.

Harvard Business Review did its own piece on this research and its implications in an Oct. 31 article. Read more.

This year, there’s been a lot of activity and attention around efforts to level the playing field for women founders–most notably, by other women. Inc. Magazine devoted its entire October 2019 issue to women founders and the rising phenom of women investing in them. Inc. editor at large Kimberly Weisul talked to GBC’s Linnea Roberts about it. Read more.

Olivia Kim, GingerBread Capital

We’re proud to be part of this expanding universe. We’re growing, too. Since June, we’ve added four awesome women-led companies to our portfolio. And, in October, we welcomed Olivia Kim to the GBC investment team. Olivia was most recently with San Francisco private equity firm Luminate Capital Partners. In her new role with GBC, she’ll help to identify and evaluate promising female founders who are shaking up the way things get made and done.

The companies we invest in, at their core, are all approaching and solving problems in new and better ways. Some are inventing whole new markets. Analisa Goodin is one. The founder/CEO of catch&release, Analisa recently talked with us about how her image licensing platform is transforming the world of advertising — as well as how we see ourselves. Hope you’ll give it a read on the GingerSnaps blog.

There’s much more to share. Please check out our Fall newsletter to catch up on what’s been happening with us and the founders we support. And we hope to see you at the summits, conferences and gatherings coming up that are bringing us all together.

Cheers!

"I tell my founders, 'My goal for you is simple. I want you to get rich, and I want you to put it back into the system.'"
- Linnea Roberts, Inc. magazine (October 2019)