Women in Finance: Breaking Barriers, Driving Investments, and Reshaping the Future

The world of finance has long been dominated by men, but a wave of change is finally gaining momentum. Women entrepreneurs are generating impressive returns on investment (ROI), yet still face major obstacles in accessing venture capital funding. The good news is that a new wave of female-led initiatives is creating opportunities for women to take charge as investors, leaders, and wealth creators in the financial sector.

Breaking Barriers in Venture Funding

Despite the proven success of women-led companies—producing 35% higher returns than those run by men—venture capital remains male-centric. In 2022, just 2.1% of venture capital funding went to female founders, a stark contrast to the value they bring. Women make up only 8% of venture capitalists, and a mere 0.7% of $82 trillion in managed assets in the U.S. are held by majority women-owned firms. These statistics underscore the gender imbalance, which stifles innovation and economic growth.

Leaders like Samantha Katz of IDiF are advocating for systemic change, pointing out the massive untapped potential that lies in empowering women investors. As Katz notes, breaking down structural barriers could have transformative effects, making capital more accessible to women entrepreneurs and promoting an inclusive financial ecosystem.

Women-Led Initiatives Reshaping Finance

Several innovative women leaders are driving significant change. Sophia Platt and Emna Ghariani, co-founders of Bridge Funding Global, match female fund managers with investors through curated events, helping break the traditional networking barriers that have historically excluded women. Their efforts have connected hundreds of female fund managers with limited partners, increasing the flow of capital to women-founded companies.

Similarly, Julie Castro Abrams launched The New Table campaign, introducing 10,000 women to venture capital investing. This initiative aims to empower women financially and foster a stronger presence in venture capital. These efforts highlight that when women support each other financially, they don’t just build wealth—they reshape the entire financial ecosystem.

Community-Based Investing: Making Finance Accessible

For many women, navigating the world of venture capital can feel daunting. Enter community-based investing platforms like Women Abundance Club in Los Angeles and The Rainmakers Collective in New York. These communities bring women together to learn about investing in a supportive environment, lowering the barriers to entry and fostering a sense of shared purpose. For those new to finance, this is an approachable way to step into the world of venture capital with guidance and camaraderie.

Several women-led funds, including Vitalize, The Council, and The Helm, have also launched angel communities that educate women about investing. They handle due diligence and offer lower entry points, making venture investing accessible to more women. These communities support female-founded companies across diverse sectors like fintech, HR technology, and healthcare, contributing to a more equitable market.

Empowering Women as Wealth Creators

Globally, the financial disparity between men and women is stark. Women earn significantly less in pension income than men, with the OECD reporting a 26% gap. Furthermore, while women are comfortable with short-term financial planning, only 23% feel confident in long-term financial planning like investing. 

However, studies show that women investors consistently outperform men by nearly 2% annually. Investing not only benefits women but also strengthens communities as they tend to prioritize ESG (Environmental, Social, and Governance) factors and give back through philanthropy.

If women participated in investing at the same rate as men, an estimated $3.22 trillion in global investment capital could be unlocked. Imagine the economic power that could be generated with a more inclusive approach, allowing women to reach their full potential as wealth creators and investors.

Driving Diversity and Inclusion in Financial Institutions

Increasing women’s participation in finance isn't only about equity; it’s about creating better business outcomes. Studies show that diverse boards and leadership teams are more ethical, attract talent more effectively, and are better positioned to develop sustainable business practices. 

In 2023, women held just 18% of C-suite roles globally and only 30% of board seats in major companies. Although women represent 52% of finance-related roles at entry levels, the numbers dwindle as they progress in their careers, especially among women of color.

Organizations like UBS are making strides, with nearly 30% of senior management roles held by women globally. Leaders like Amy Lo, Chairman of UBS Global Wealth Management Asia, are inspiring change by fostering inclusivity and advocating for gender diversity in high-level decision-making roles. These initiatives are essential to closing the representation gap in finance and ensuring that women’s perspectives influence critical financial decisions.

Building an Inclusive Future in Finance

To reshape financial services, we must support women from entry to senior levels, providing resources and mentorship to advance financial literacy and empower them as decision-makers. Closing the gender gap in finance could unlock $700 billion in revenue, benefiting not only women but society as a whole.

Promoting gender equality in financial services is a necessary strategy for fostering sustainable economic growth. By advancing women’s roles in finance—we are setting the stage for a financial future that is diverse, resilient, and equitable. Together, we can build a financial industry where women are influential players shaping the next era of economic success.