A Better Bet

What if, on average, you could double the amount of revenues from the start-up companies in your investment portfolio?  Of course you would do it.  Here’s how:  invest in women-owned businesses.

According to a recent study completed by The Boston Consulting Group and MassChallenge, when women business owners pitch their ideas to venture capital firms for early-stage funding, they receive, on average, more than $1 million less per company than do men.  However, these same women-owned companies ultimately delivered twice as much revenue per dollar invested than men-owned companies.

Why does this happen?  Three key reasons: (1) women founders, more often than men, are subject to challenges and pushback during their pitch for VC capital.  Moreover, if challenged, they usually don’t respond as aggressively as men in rebuttal, (2) women are generally more conservative in their pitches and therefore ask for less capital than men do, and (3) 92% of the VC partners reviewing new start-ups are men who therefore often have less familiarity with the products and services women-founded businesses bring to market.   Please read the entire story: https://www.bcg.com/fr-fr/publications/2018/why-women-owned-startups-are-better-bet.aspx.

Meteor5 is actively seeking new women-led management teams in which to invest.  Please reach out to us at contact@meteor5cap.com.