In a man’s world, female entrepreneurs are often hidden in the dark. According to Fundera, 40 percent of businesses in the United States are owned by women. However, the increasing numbers do not mean there are not any hurdles left to jump. When it comes to funding, men are twice as likely to raise over $100,000 than women are. Loans given to female entrepreneurs amount to $5,000 less than those given to men.
The difficulty does not stop there, either. LGBTQ, Latinx and African American entrepreneurs have greater barriers to cross. Despite this frustration, Portfolia is hosting its 8th fund catered toward queer, Latinx, and African American women entrepreneurs. This time around, the fund is being led by world-class investors.
Four percent of invested venture capital assets are overlooked by women, and the percentage drops when it comes to minorities.
Did you know that women face substantial barriers, like access to capital, when trying to start their own business? And that only 16% of small-medium businesses are owned by women? Supporting our female entrepreneurs is essential for the growth our our economy! https://t.co/Dtp6zbbc1q
— Jessica Fraser (@_jessicafraser_) November 20, 2019
The purpose of Portfolia is to invest in companies run mainly by women. The Portfolia website states their “companies work relentlessly to bring breakthrough solutions to the world.” They focus on companies that may be recognized by other venture capital companies. Their 8th fund in Silicon Valley will be geared towards female minority entrepreneurs.
“Some of the most exciting companies—and greatest opportunities for returns—are coming from these burgeoning markets. Yet these companies and entrepreneurs are shut out by the traditional venture capital industry,” said Trish Costello, the Portfolia founder.
The importance of investing in companies run by minority women lies in just that: the company. Portfolia has been backing companies that tackle a variety of issues relevant to women. These companies include items such as PrimeGenomics, a new way to do a cancer screening through saliva or Future Family, whose purpose is to make fertility services affordable through using subscription programs instead of up-front payments.
The list is expansive. Truly, the future of companies lies within the power of women and minorities.