Perspective: Increase in Female Angel Investors Secures More Women-Led Startups

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It is by no coincidence that the rise of funding for women entrepreneurs concurs with the increase in the...

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Mungang Cynthia Nnam
Mungang Cynthia is a Geology teacher who finds writing about recent events around the world a bit more exciting than teaching. At female investor magazine, she writes news articles about recent related events around the world.

It is by no coincidence that the rise of funding for women entrepreneurs concurs with the increase in the number of women angel investors.

Research data for the 2004 survey indicates that they were two hundred and twenty-five thousand angel investors in the US, 5% of which were females (nearly 11,000). Twelve years later, available data indicates an unimaginable turn; whereby women made up 26% (about 78,000) out of the 300,000 angel investors in the United States. Interestingly, this increase corresponds to another increase; a rising figure of funded women entrepreneurs.

This is too much for a coincidence that both points are skyrocketing. The increase in the number of female investors from 2004 corresponds to the time when more women realised that they had/have the skills, network, interests and capital to invest in manners that initially didn’t exist. As these females became angel investors, the figure of female-led startups financed by angel investors was bound to rise.

It is worth noting that results from the Center for Venture Research, University of New Hampshire, demonstrates this relationship. The data reads that 3% (1,500) of the 4,8000 companies that got angel funding in 2004 were women-led businesses. In 2016, women-led businesses designated 22% of all businesses that got angel funding (that’s over 14,000 women entrepreneurs receiving capital to drive their early-stage firms).

Women investors do not solely fund women-led businesses but that does not roll out the fact that the momentum, courage and leadership of the expanding association of women angels have enhanced growth for female entrepreneurship.

Join the number one source for female investors at for more of such insights. Connect with us to find answers to your questions and to explore ways to put your money to work as an investor or to get assistance for your startup as a female entrepreneur.

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