WHY It’s good business to #choosetochallenge gender bias
By Emma MacRae, Investment Director, Fortunis Capital
I am pretty sure no CEO turns up at all-male boardroom and says: “OK, guys, how to are we going to discriminate against women today?”
Yet there is no doubt that unconscious gender bias still exists today. This is not based on anecdotal evidence or gut feel but on raw data.
Yes, we have seen progress in boardrooms, with women now accounting for 32 per cent of positions – up from 12.5 per cent in 2010.
But Treasury reports show for every £1 of VC investment, all-female founder teams get less than 1p, all-male founder teams get 89p and mixed-gender teams get 10p.
The excellent study by Enders Analysis, Women as Entrepreneurs in the UK. Closing the Gaps, concluded that: “Access to equity finance remains ‘male, pale and stale’, resulting in a vast ‘inclusiveness’ gap among digital enterprises.”
So when it comes to gender equality it is not enough to talk the talk, but we must walk the walk. And to pick up the theme of International Women’s Day, #ChooseToChallenge old-school approaches to investment.
As a leading impact investor, our team is split 50-50; talented men and women who do not look at anyone’s gender when we make investment decisions but focus on innovation and tangible outcomes.
Our mission is to support companies who make a positive difference to society as a whole.
We do see gender bias in the sector especially around the pitch process, which can be intimidating for female founders. Research shows that many investors prefer pitches presented by male entrepreneurs compared with pitches made by female entrepreneurs, even when the content of the pitch is the same.
In a competitive environment, men are more likely to talk up their achievements while women have a more measured pitching style.
Our £1million funding for all-women femtech Clementine, named one of the seven apps every woman should own, bucks that trend.
Founded by Kim Palmer (pictured left), it provides world-leading virtual professional hypnotherapy sessions as well as a suite of wellness products to empower women to feel more confident, capable and on top of their game.
Kim Palmer: Fortunis understood how we were trying to address a problem
But don’t take my word for it. Here’s how Kim described the pitch experience with Fortunis Capital: “We did not have to jump through hoops with a traditional pitch to secure this investment. Yes, we produced a strong business plan, but it was a conversation, a discussion among future friends.
“It is no coincidence that Fortunis, with a strong female leadership team, immediately understood how we were trying to address a problem millions of woman face - and why it was worth investing in.”
From an investors point of view, it is also good business sense. Morningstar reported that assets in funds that select companies according to the proportion of women in leadership and the adoption of female-friendly policies more than quadrupled to $3billion globally over the three years to the end of January.
According to the research, establishing gender pay balance would result in women being £5500 better off a year.
As former Secretary General of the United Nations Bank Ki Moon said: “The world will never realise 100 per cent of its goals if 50 per cent of its people cannot realise their full potential. “
Gender equality and diversity is not a tick the box exercise – but a basic human right that is good for our people, good for our customers and great for business.
#ChooseToChallenge #IWD2021
To connect with us email info@fortuniscapital.co.uk.