The Investability Gap: The Next Great Gender-Equality Frontier

Twenty-four years ago, I was up for promotion at Goldman Sachs’s London office, advancing from Analyst to Associate. For the bank, it was a small shift in its operations; for me, it was a critical investment in my future.

I was in the same cycle as two male colleagues—one German, one French—both fresh graduates working under bosses from their home countries. We all sat on the trading floor, our efforts in plain sight of one another.

On paper, I had the edge. I brought work experience and a master’s degree in International Banking from Columbia University. My performance was strong, contributions were well-regarded, and I bonded with the team despite being the lone American. I believed I’d earned the promotion.

The bank didn’t agree. My two colleagues advanced while I stayed put. A kind British-Indian manager said I would have better prospects in the U.S., where diversity efforts were stronger. So, I returned to New York.

Nothing about me changed in that year—but my environment did. In New York, I was trusted with Associate-level responsibilities, managing a major technology investment and thriving on Wall Street where women’s contributions were more visible and supported. The context made my promotion less of a “risk” for decision-makers. By the time they moved me up, I’d already proven I could do the job.

I got what I wanted, but the experience left a sting. Was I unworthy of promotion in London, or did bias hold me back? When I asked for clarity, I was told to be “grateful.” That response drained my motivation to work hard for the company.

This deeply shaped my understanding of how finance evaluates women’s potential.

Twenty-five years later, now working in innovation—an industry reliant on financial investments—I see the same patterns persist for female entrepreneurs:

• Women are de-risked rather than championed for their merit

• They must over-deliver to gain the same confidence as men

• They are conditioned to accept less and be grateful for scraps

If you think my story is an outlier, compare the global investments made in female entrepreneurs versus male entrepreneurs.

Venture capital (VC) – money placed in early-stage companies to help them grow – is one of the most potent financial engines in the world. For companies that receive it, those investments signal to the market that their ideas can be a viable business. For next-stage investors, seeing a company has received VC funding gives them the confidence to participate in subsequent funding rounds.

Around the globe, women get far less VC capital than men: only 2% for all female founding teams and ~10% for mixed-gender founding teams.  Generally, female founders also receive less than they ask – approximately a quarter of the funding they seek – while their male counterparts receive half, on average.

This level of investment falls well below financial logic because female-founded businesses do better. They deliver more than twice as much per dollar invested than those founded by men and also experience higher job growth than their male counterparts.

What can close the investment gap if money can’t move investors to pay women more attention?

On the investment supply side, the answer is more women.

We need more women at the seats of financial power and are thankfully entering an age where that’s possible. Thanks to women having made significant multi-generational progress across education, careers, and incomes, they are now more present in finance and other corporate leadership positions than ever. This has already started pressing investments in women upwards.

Awareness of the problem amongst women also needs to rise. This year’s release of the award-winning documentary Show Her the Money, a documentary on the VC investment gender gap, has sparked conversations worldwide amongst investors and entrepreneurs on how to address the problem. We need more voices for change in the conversation.

More women investors will also transform possibilities. By 2030, American women alone are expected to control much of the $30 trillion in financial assets that baby boomers will possess—a potential wealth transfer of such magnitude that it approaches the annual GDP of the United States. These female investors can better understand and trust women-led ideas, founders, leaders and businesses.

On the investment demand side, the answer is also more women.

1. Women entrepreneurs need a burst of business-building resources that men have traditionally enjoyed for decades.

For centuries, the makers of success – networking mentorship and access to education – have been naturally accessible to men. Today, as women increasingly hold positions of influence and stature, they need to create these same conditions for women.

Their motivation to do so should be selfish, too. Women supporting female founders build a world where women’s needs and ambitions are recognized, understood, and addressed. Equally importantly, when women invest in women, they will make more money.

This dynamic is already in play. Women in VC, the largest global network of female venture capitalists, is creating spaces where women can collaborate and exchange resources. AllRaise is accelerating the success of women founders and funders by providing guidance and fostering connections. Funds like the Female Founders Fund invest in women-led startups and offer vital resources such as pitch training and technical expertise.

More needs to be done though. By fostering ecosystems of support, women ensure that their collective successes today become the foundation for a better, more inclusive tomorrow.

2. We need to retell the story of female entrepreneurship in a way that inspires women.

The stories told about successful female entrepreneurs have traditionally – and truthfully – been tales of underdogs overcoming barriers, fighting systemic bias, and working around the clock to make their dreams happen. While these stories contain valuable guidance, they reinforce the belief that success is an exception, not the rule. They use main characters that many women do not want to emulate.

We need a better entrepreneurial narrative that shows women as architects of a better world that hears, sees, and serves them.

For example. Whitney Wolfe Herd wanted to turn the male-dominated dating app industry on its head with Bumble, so she created an app where women controlled the choice-making. This shows women’s potential for tech innovation and their right to have control in spaces where they interact with men.

We also need to highlight that across industries, millions of women are creating ventures that tackle critical societal challenges – from climate change to healthcare disparities – and redefining success beyond raising millions in VC to creating new businesses that solve problems, uplift communities, and redefine industries.

These different stories should all challenge the male-dominated entrepreneur myth that a single genius founder brings to life an entire entity on his own.

On the contrary, entrepreneurship is about collaboration, vision, and building a community of supporters. These are all strengths many women have, and portraying them as the drivers of success can give women confidence that they have what it takes.

3. We need to elevate the growing and overlooked group of women-owned small businesses to help make entrepreneurship a mainstream norm for women.

The VC numbers don’t show that across global economies, the rate of female entrepreneurship is rising at more than double the pace of men. Despite this, one VC investor stated that less than 1% of the pitches received last year came from women.

Women-owned small businesses are the backbone of many economies, driving local innovation, creating jobs, and sustaining communities. Yet, their entrepreneurial efforts are often seen as too small or non-technical to scale – by both themselves and the investor community.

This group of business leaders needs to be reframed as launchpads for entrepreneurship. As women founders who have proven their resourcefulness, resilience, and ability to navigate challenges, they are proven investments. By offering programs, platforms, and mentorship opportunities tailored to their realities, they can be empowered to grow, increase the pipeline of deals to VCs, and create clearer paths to capital for those following in their footsteps.

They can also serve as inspiration to the generations following behind them. As the face and definition of female entrepreneurship expand, more women can feel that path is right for them and find examples in their local community on how to take it.

Together, these three efforts will transform how investments flow to women. They will equip women entrepreneurs with the tools to address investors’ de-risking bias, present their proven strengths, and expect more from investors and the world.

This will drive a better future that sees and invests in women more naturally, generously, and for who they are – as it should be.

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