Asking better questions: The effect of changing investment organizations’ evaluation practices on gender disparities in innovation

The gender financing gap persists. Women-led startups raise significantly less capital than startups led by only men. That number has hardly budged over the past decade — despite the fact that data continues to suggest that women-led startups outperform startups with all-men founding teams.For investors, focusing on only a fraction of all entrepreneurs means they leave significant opportunities for returns on the table. For startups, this gender financing gap means promising innovations do not receive the resources they need to scale.

That is why Village Capital partnered with IFC, We-Fi, the World Bank, and researchers Amisha Miller and Saurabh Lall to identify and test several concrete ideas for how to help close the gender financing gap. With the support of a research coalition that also includes Visa Foundation, Moody’s, ANDE’s Advancing Women’s Empowerment Fund, Sasakawa Peace Foundation, and ANDE’s SGB Evidence Fund, we have identified several promising interventions.

Those involved have published results and recommendations for how investors and accelerators can take action.

Details of the underlying RCT can be found this AEA RCT Registry entry. IGL was pleased to have Amisha Miller join us for IGL2020 to discuss this research and why it is important to consider "Changing the System Not the Seeker: How Can Equity Investors Fund More Diverse Investments?"