Study Finds Women Account for Increasing Senior Roles at PE Firms

A study conducted by Prequin last month discovered that in North America females account for 9.2% of senior employees at private equity firms. The percentage of senior roles held by women at VC firms vs. PE firms is actually surprisingly pretty different. The study found that 9.7% of senior members of VC firms are women vs. only 6.9% at buyout PE firms. Overall, Prequin did find that the proportion of senior roles held by women has been increasing compared to last year (9.2% in 2012 vs. 8.9% in 2011). While this is a good trend in the right direction, it's clear that there is still plenty of room for more female investors to join the top ranks at private equity firms.

Women Taking Over in Business?

I think we probably still have a ways to go for women to take over in business, but I found this infographic pretty interesting and inspiring for female leaders and entrepreneurs:

What makes a great angel investor?

There was a great blog post that recently listed the five key traits of angel investors. Here is a summary of the characteristics mentioned in the post:
1. Relevant experience and knowledge in the industry of the startup
2. Large network with relevant connections
3. Willingness to learn as much as you are willing to teach
4. Ability to provide time and empathy during tough times
5. Long-range thinking

I would argue that these are important skills that are relevant for just about any profession and they are also skills that I'm always continuing to build on. The first two traits come with additional experience in the field and take longer to develop, but the last three traits are ones that people can start on right away. The fourth trait is probably one that females have an inherent advantage, since empathy is often a trait that comes more easily to women (and one can argue that aggressiveness and risk-taking come more easily to men, which are other skills that can be helpful to investors).

Another great female angel network that I came across is the Women's Capital Connection.  The network was launched three years ago with 32 investors, who commited to investing in women-led ventures. The group started out in Kansas City and has invested over $1mm in five female-led ventures. They've also expanded to nine other similar groups and locations across the U.S. These amazing women of WCC are helping shape the future of angel investing, while sharpening their own financial and investment skills, mentoring other females, creating wealth and jobs for local communities and investing in women's futures and ideas. That's a very inspiring goal for us to strive for! 

Angel Investing – The Inside Scoop

This past week, I attended another EFactor event that consisted of two keynote speakers who talked about angel investing and then it was followed by a panel discussion with five angel investors from all the major angel groups in Chicago. For the next few posts, I’m going to recap what I learned from the event and focus on what it means to be an angel investor, what the current angel funding landscape is like and what angel investors are typically looking for when deciding whether to make an investment.
Also, a good article about how to pitch to angel investors was published in the WSJ a few days ago that I would recommend reading especially if you are looking to reach out to angels for funding anytime soon – Chasing the New Angel Investors.

I also really enjoyed Joanne Wilson’s perspective on angels investing in women-led businesses in a recent Q&A.  When asked to provide advice for angels or VCs looking to invest in women-driven startups she said, “There are meetups all over the city every single night. Eventually, you meet people and hear what's going on. It's a very open, embracing industry. There's a lot out there and there are a lot of bloggers writing about what's going on and about new businesses. If you can't find women-led businesses, then you're not reading the right things and you're not looking in the right spots. I would love to see more people who have created wealth for themselves and their families take a chunk of their change and invest in women-led companies. It would be better for the economy. And, again, better for women. By the way, it's not always about women — companies should be mixed. Women bring something to the table and so do men. It's about the best ideas.”

I completely agree with Joanne Wilson (who by the way is the wife of VC Fred Wilson) and I’ve found the entrepreneurship community here in Chicago very welcoming and easy to get involved in through meetup groups, networking, and helpful seminars.