Venture capital has a severe gender equity problem. For the uninitiated, venture capital funds invest money into startups. These investments are risky, because if the company is a flop, they lose big. If the company, like Glossier, for example, succeeds, so to do investors.
Enter XFactor, a small venture capital fund worth $3 million that invests in startups with at least one woman founder. The firm offers a one time $100,000 investment to startup founders with "billion dollar market opportunities."
Why does it matter? We've discussed previously how this impacts woman-owned startups, from the huge fundraising gap to the lack of representation of women, especially women of color.
- Alicia McElhaney / She Spends Issue #11