LONDON (Thomson Reuters Foundation) - A women-to-women investment fund is coming to Britain next month to boost financing for female-owned businesses, its founder said on Thursday, as efforts grow to close the gender investing gap.
SheEO has lent more than $2 million to 32 female social entrepreneurs in the United States, Canada and New Zealand to grow their businesses since 2015 in an attempt to address a global gender investment gap.
“Most of the people writing cheques and investing are men,” founder Vicki Saunders told the Thomson Reuters Foundation.
“SheEO wants to fund female innovators with great ideas to create stronger communities and a better world.”
It is the latest venture to support female entrepreneurs around the world, who often face more obstacles than men, including a lack of access to finance, business networks, international markets and role models.
Three out of 10 U.S. businesses are owned by women but they only receive $1 in investment for every $23 that goes to male-led businesses, the Senate Small Business and Entrepreneurship Committee found in 2014.
A Goldman Sachs-World Bank Group partnership to provide capital to women entrepreneurs in emerging markets reached $1 billion in investments in May.
SheEO brings together 500 women each year who contribute $1,100 each which is pooled together and they lend it out, interest-free, to five women-led businesses of their choice.
The loans are paid back over five years and then loaned out again, creating a perpetual fund which SheEO hopes will grow to $1 billion, with 1 million investors supporting 10,000 women-led ventures.
More than 300 women in Britain wrote to SheEO asking it to launch there, said Saunders ahead of a visit to London where she hopes that 500 female investors will come on board.
Workplace gender equality is in the spotlight in Britain, where just 6 percent of the biggest publicly-listed companies are headed by women and pay disparities were revealed at major institutions last year.
Twenty One Toys founder Ilana Ben-Ari, one of the first to get SheEO funding in 2015, said it changed her business, enabling her to push ahead with production and hire staff to help with a stressful workload. Her revenue has now doubled.
“It was easy to get my foot in the door and have a meeting but it was near impossible to have a serious conversation about my business,” she said, describing her efforts to get financing from venture capitalists.
“Halfway through that meeting you find out - this isn’t a meeting, this is a date.”
($1 = 1.3082 Canadian dollars)
Reporting by Lee Mannion @leemannion; Editing by Katy Migiro. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, women's rights, trafficking, property rights, climate change and resilience. Visit news.trust.org