Breaking Barriers: Women Dominating the World of Angel Investing

Angel investors, who use their own money to finance fledgling companies, have historically been dominated by men. However, a report from the Center for Venture Research at the University of New Hampshire shows that nearly 40% of angel investors in 2022 were women, up from 22% a decade earlier. The growing number of women angels may be due to several factors, including more individuals in Silicon Valley having money and the amount of money needed to make investments shrinking. This change is affecting the way angel networks work and who gets funded. Angel investing typically comes after friends and family investments and before venture capital investments. Historically, angel investing has been predominantly white and male, but recent changes in the industry have allowed more women, especially millennial women, to become angel investors. The barriers to entry, such as networks and money, have decreased, leading to a more diverse pool of angel investors. This shift has also resulted in a broader range of founders and products and services being backed. Angel investment takes time to yield results, but in the next 10 years, it is expected that there will be more diverse and prominent founders in the industry.