As we commemorate a new Women's Day, venture capital was not left out. Magdalena Guzmán, executive director of ACVC, spoke with Constanza Santa María and Gabriela Villalobos on Radio Pauta's Mercado Central about the progress women have made in this industry.
Although worldwide the participation of women in startups and the VC industry has been increasing, it is still quite low. And in Chile the situation is not far from that.
Magdalena Guzmán explained that there are two relevant reasons for this. "Indeed, there are few women leading startups because there are also few women in STEM areas," she explained. This relationship occurs because as the basis of startups is technology, it is generally people linked to these areas who create these types of companies. A second factor is the low presence of women in the decision making of VC funds. "It is more common for a woman to believe in another woman to invest," she said. In other words, if the fund is managed by women, it is more likely to invest in startups led by women.
Investors are eager for more women in venture capital and startups because it has been validated that diverse teams result in better businesses, she added. A study by the IFC - International Finance Corporation states that companies with gender diversity have a 13% higher rate of return than the average.
At the local level, there is also another point to pay attention to, she warned. While women leading startups account for almost a quarter of all those who go through accelerators and incubators, when it comes to raising VC capital this percentage is reduced to 11%. "That is where many business opportunities are being lost," she said.
Check out the full conversation here