..



.

Business News

Introducing gender lens investing. It's more than pink-washing

  • Written by Danielle Logue, Associate Professor in Innovation, Entrepreneurship and Strategy, University of Technology Sydney
image

Since mid-last year, Wall Street investors in sensitive industries have been insisting on so-called “Weinstein clauses[1]”, that allow them to claw back their money if revelations of inappropriate behaviour damage the business.

It’s a mere part of something bigger, called gender lens investing, that goes way beyond the earlier concept of pink washing[2].

What is gender lens investing?

Gender lens investing incorporates an analysis of gender risks in investment decisions in the same way as an analysis of other risks.

The Wharton Business School[3] identified 87 private equity, venture capital and debt funds that apply a gender lens, up from 58 in 2017.

The uptake is supported by conferences on “gender smart investing[4]”, new gender-sensitive international development funds[5] and an increasing numbers of investor gender training programs [6].

How does it work?

The non-profit Criterion Institute [7] works with Australia’s Department of Foreign Affairs and Trade[8] on impact investing programs[9] in the Asia Pacific, a strategy established under former Australian Foreign Minister Julie Bishop[10].

In applying a gender lens it suggests asking:

  • What gender patterns are at play in the market that could impact both opportunity and risk of the investment? Are, for example, girls’ education rates or domestic violence rates an investment risk at the national or industry level, or at the organisational level in terms of absenteeism and presenteeism[11]?

  • What is the gender (and diversity for that matter) composition of the people screening initial investment opportunities? Is there a risk that opportunities will be missed through too narrow a focus?

  • Do you have enough information? If not, do you need other partners or sources?

  • Do processes such as tight turnaround times lead to quick but poorly informed decisions, amplifying gender bias[12]?

The gender data gap[13] shows the dangers inherent in ignoring the specific requirements of females for sectors such as health, medical and scientific product design, development and testing. For example, there is a heightened risk of injury for women in car accidents due to seat belt design being based on the average male body shape and size.

The absence of a gender lens also means missed product opportunities.

For example, approximately US$1 billion has been invested in women’s health technology[14] over the past three years, and “femtech” is estimated to grow into a US$50 billion industry by 2025.

Where is the new money flowing?

Increasingly, it is going to firms led and founded by women.

Research finds strong returns from lending firms led by women, with a recent report concluding that “women owned start-ups are a better bet[15]”.

A survey of Australia’s top 10 venture capital funds found that of 448 investments made in the inception stage of firms, 35%[16] had female co-founders in 2018, up from 26% in 2017.

Startup accelerator programs such as Springboard[17] and SheStarts[18] are also identifying and supporting firms with female founders.

Historically, the inequity has been stark, with estimates suggesting that companies with female founders have received only 4.4% of venture capital deals, and those companies have garnered only about 2% of all capital invested[19].

Bright signs have been the emergence of female owned VC firms[20] that invest in women such as US firm Ellevest[21].

Where to now?

There has always been a moral case for gender lens investing, but research by us[22] and others is increasingly finding a business case[23].

Gender analysis is pointing to risks and opportunities. Smart investors are paying attention.

Read more: Explainer: the rise of social impact investing[24]

References

  1. ^ Weinstein clauses (www.bloomberg.com)
  2. ^ pink washing (www.smh.com.au)
  3. ^ Wharton Business School (sf.wharton.upenn.edu)
  4. ^ gender smart investing (www.unwomen.org)
  5. ^ international development funds (www.prnewswire.com)
  6. ^ training programs (sites.duke.edu)
  7. ^ Criterion Institute (criterioninstitute.org)
  8. ^ Department of Foreign Affairs and Trade (dfat.gov.au)
  9. ^ impact investing programs (investinginwomen.asia)
  10. ^ Julie Bishop (foreignminister.gov.au)
  11. ^ absenteeism and presenteeism (impactinvestingaustralia.com)
  12. ^ amplifying gender bias (www.theguardian.com)
  13. ^ gender data gap (www.theguardian.com)
  14. ^ women’s health technology (navigatingimpact.thegiin.org)
  15. ^ women owned start-ups are a better bet (www.bcg.com)
  16. ^ 35% (www.afr.com)
  17. ^ Springboard (sbeaustralia.org)
  18. ^ SheStarts (www.shestarts.com)
  19. ^ about 2% of all capital invested (fortune.com)
  20. ^ female owned VC firms (www.nytimes.com)
  21. ^ Ellevest (www.cnbc.com)
  22. ^ research by us (www.uts.edu.au)
  23. ^ a business case (thegiin.org)
  24. ^ Explainer: the rise of social impact investing (theconversation.com)

Authors: Danielle Logue, Associate Professor in Innovation, Entrepreneurship and Strategy, University of Technology Sydney

Read more http://theconversation.com/introducing-gender-lens-investing-its-more-than-pink-washing-112291

Business Daily Media Business Development

Bahrain Property Show 2018: How does it reflect the real estate market development in Bahrain

It is no secret that the Arabian Peninsula and the Gulf Cooperation Council (GCC) countries are currently going through a lot of pivotal changes. Such changes do not include economic or po...

News Company - avatar News Company

Di Jones real estate recognises high achievers

Di Jones celebrated its outstanding performers on Saturday (24 February 2018) evening at the Di Jones Real Estate Annual Awards.                               The black-tie Gala Dinner s...

Helen Hull - avatar Helen Hull

Five Reasons Melbourne Rules

If you are traveling in Australia and have left Melbourne off your destination list, then you are going to want to reconsider. Many people consider Melbourne to the best city in the world...

News Feature Team - avatar News Feature Team

Making Friends During Your Campsite Stay

Part of the excitement of vacation is meeting people who you would never otherwise encounter. Staying at a campsite isn’t just about taking in nature. It’s also about sharing the beauty of n...

News Feature Team - avatar News Feature Team

Have More Fun On Your Business Trips

Whether you are a traveling salesman or someone who finds themselves on the road more than in their office you probably are grateful for any tips you can get especially if they involve havin...

News Feature Team - avatar News Feature Team

Traditions of Rural Bali at Villa Sabana

A Privileged Insight into the Traditions of Rural Bali at Villa Sabana  Situated in the traditional village of Pererenan near Canggu, Villa Sabana is peacefully secluded in a semi-rural...

Linda Lim - avatar Linda Lim

Business Daily Media Business Reports

Di Jones real estate recognises high achievers

Di Jones celebrated its outstanding performers on Saturday (24 February 2018) evening at the Di Jones Real Estate Annual Awards.                               The bla...

Helen Hull - avatar Helen Hull

Eclipse Travel Expands Operations to New Zealand

Eclipse Travel, specialists in key adventure destinations such as Antarctica, the Arctic, Africa and Latin America, have announced today their expansion of operations to ...

Yvonne Kong - avatar Yvonne Kong

How medical professionals can benefit from an overall wealth management solution

As a health care professional, you have made it your life's work to focus on the care and health of the general public. While this kind of work can be extremely rewarding...

News Feature Team - avatar News Feature Team

Why Pinterest Should Be Part of Your Marketing Strategy

Pinterest is a growing social media platform that can deliver significant traffic to your website and new followers to your brand. With it’s steady growth and outrageous ...

Greg Nunan - avatar Greg Nunan

The top reasons why gyms fail

Steve Grant is a Business Coach and Founder of GymHub.com.au   Every month thousands of new trainers walk out of their 6-month course with the qualifications needed ...

Steve Grant - avatar Steve Grant

WHITE LABEL NOBA’s Winter 2016 season: Earth + Country

Taking cues from the warm winter colours of tobacco and caramel, and combining them with the strength of navy and the embracing lightness of whites and creams; and then...

Kath Rose - avatar Kath Rose

Former Etihad boss brings substantial event insight to PMY Group Board

Paul Sergeant PMY Group, the architects of the digital insurgency occurring at major venues across Australia and New Zealand, are delighted to welcome 35 year even...

Annie Konieczny - avatar Annie Konieczny

More training for coffee making than property sales: REINSW

Sydney 9 May 2016. An overhaul of education and training standards for the real estate profession must take place to help prevent illegal activities, according to the Rea...

Helen Hull - avatar Helen Hull