Why the Rise in Female Angel Investors Is Good News for Women-Led Startups

Thursday, June 21, 2018 - 8:00am

It's no coincidence that these two data points are trending upward together, nor is it coincidence that it's happening now. The growth in the number of women investors since 2004 coincides with a period of time in which women -- in large numbers -- have recognized they have the skills, interests, networks and capital to invest in ways that did not previously exist. As those women became angel investors, the number of women-led companies backed by angel investments also rose. Data from the Center for Venture Research at the University of New Hampshire illustrates this correlation. In 2004, 3 percent of the 48,000 or so companies that received angel funding were led by women -- that's approximately, 1,500 women entrepreneurs accessing angel investments. In 2016, women-led companies represented 22 percent of all companies that received angel funding -- that's more than 14,000 female entrepreneurs receiving capital to propel their early stage companies.