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Posted by Anonymous (not verified) on October 14, 2014
Angel Investor

Angel investors are predominantly male. But there has been a shift over the past decade. There are more and more female angel investors joining the ranks. And that could mean more opportunities for your business too.

Angel investor, Marianne Hudson explains in a post she wrote for Forbes:

“As a woman angel investor, I am excited to see more women in our field. For all investors, the smart women investors are expanding the diversity of deal flow and funded companies. For the entrepreneurs they fund – many of the businesses will grow and create great returns because of the added funding and diversity of advice provided by these women. That’s a win for everyone.”

According to Hudson, today an estimated 22 percent of current angel investors are female. Though that doesn't appear to be an overwhelming number, but it is up from about 8 percent in 2005, which represents a pretty significant increase over the past decade, even though women still have a long way to go.

Hudson says that the growing number of female angel investors has caused a 'ripple' effect. More female angel investors means more potential investment dollars for all entrepreneurs. And the increasing visibility they are enjoying will likely encourage more women investors to get involved.

So what does this mean for businesses that are looking to secure angel funding? Men still control the majority of angel funding available but entrepreneurs should be mindful of the change that is happening.

Therefore if you have a pitch that’s targeted specifically to the typical male investor, you might want to reconsider. Instead, think of the possibilities presented by a growing pool of female angel investors too. It means more options to get your business funded and could also result in more effective guidance and advice from an increasingly more diverse angel community.

For example, women make up half of the consumer base, so if your business plans to sell products or services to women, wouldn’t it be helpful to have investors that understand that particular demographic?

Female angel investors can offer expertise and insights about businesses and consumers that differ from those of their male counterparts. Depending on the type of startup, this unique expertise could prove to be invaluable.

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