A vicious cycle of capital
This vicious cycle naturally also applies to all other accesses to capital, even loans. Even in banks, it is still predominantly men lending to men.
Female founders are more successful
If investors only invest in others who look like them, the business world is systematically excluding people. And these people are women. On a global scale, men dominate the economy, be it on the executive floors, in global trade, or in the large money sources such as venture funds that decide on innovation and progress. This kind of economic system thus misses a lot of talent and brilliant ideas that could help us move forward as a society. In contrast, the hype about young, white, male founders has led to many bad investments and inflated IPOs.
By the way, in technical terminology this phenomenon is called a "misallocation of resources", or simply economic nonsense. Especially since various studies highlight that female founders are actually more successful than male founders. For every dollar invested, women make 78 cents in revenue, men only 31 cents.
The facts are there. Insight is what's missing.
Close the Gaps
In Germany, a number of campaigns are underway to break this vicious cycle. For example, there are calls for a women's quota - at least for public start-up funding. After all, public money should go equally to women and men. Switzerland is still a long way off from achieving this. As is often the case, there is a lack of accurate data to measure and address the problem.
Only when these large streams of funds begin to reach women as well, can their ideas and products start to benefit society as well. Entrepreneurial courage must be equally rewarded with a fair playing field in the competition for investors' money.
elleXX has experienced these stereotypes and obstacles itself and struggled for three years to get funding.
The elleXX movement wants to change that.
You too? Be part of it!