Forbes - Female Founders Feel The Capital Crunch

Plus: Should You Be Profiting As An Antiracism Expert?

Morning Banter

Next Wednesday is Women’s Equality Day, which commemorates the passage of the 19th amendment that granted some women the right to vote. We’ve made considerable progress since then, particularly in the entrepreneurial space. Last year, a record number of women-founded startups—21 to be exact—became unicorns, the most in a single year. One would expect to see that number grow in 2020, right? Not exactly.

Against the backdrop of a global pandemic, women are finding it harder to access capital as investors take a more cautious approach and double down on their existing portfolios. Just 26% of women report having at least 12 months of runway, versus 38% of male founders. That number drops precipitously for founders of color to just 19%.

But it’s not all bad news. While we’re unlikely to see another record-setting year of deal activity for female-founded companies, investors are expanding their networks due to limited mobility and realizing that diverse companies lead to higher financial returns—even in a pandemic.

Send me an email at rumoh@forbes.com.

Quiz Yourself

Failure to invest in women and people of color is a missed opportunity that’s pegged at how many trillion dollars?

A) $1.2 trillion
B) $2.5 trillion
C) $3 trillion
D) $4.4 trillion

(Answer located at the bottom of this newsletter.)

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Up Ahead

• Tune in to this August 27 webinar on reimagining business, hosted by Good Morning America's Robin Roberts.

• On August 28, watch the live broadcast of the Black National Convention, where speakers will discuss the Black political agenda.
  

Quiz Answer: (D) Failure to invest in underrepresented founders is a missed opportunity of up to $4.4 trillion.