Addressing gender bias in wealth allocation

How I hope the #iwd2024 theme of ‘Count Her in: Invest in Women. Accelerate Progress.’ meets action: >> BANISH THE GAP Every company with a gender pay gap – and we’re going to know most of your names in February when the Workplace Gender Equality Agency publishes the data – closes it by Dec 2024. >> MEN AS ALLIES More men actively mentor, sponsor and champion their female counterparts so those women can progress their careers/businesses faster. More men step in when they see discrimination/bias/abuse, to take the load off women. >> FIX SYSTEMS, NOT WOMEN We banish any ‘fixing women’ discussions when talking about gender pay and retirement gaps, and instead focus on fixing systems. >> SHARE THE LOAD Every large company with an *extended unpaid* (usually 1-2 years) parenting leave option encourages dads to take it up, sending the clear message that unpaid caring work is to be shared between parents and is not just the domain of mums. >> SUPER ON PARENTING LEAVE Every big company follows the lead of those good folks who’ve done it already and opts to pay super on paid parenting leave for all parents. Do it now so you look good, before it’s a legislated requirement. >> VISIBLE ROLE MODELS Every education department in the country fixes the dearth of female role models in high school science curricula and textbooks per IncludeHer …then audits the same across all curricula and textbooks, and all year levels, fixing any gaps they find. >> SCALING FACTORS Grant providers acknowledge the gender pay gap’s impact on the ability to save matched funding and introduces a scaling factor to account for that handicap. >> ADJUST FOR BIAS Investors, including angels and VCs, use a personal checklist in all pitches to ensure that for every prevention (downside focused) question they ask a prospective female founder, they also ask *at least* one promotion (upside focused) question to adjust for bias. >> 10%+ VC TO FEMALE FOUNDERS Equity Clear publishing its members' investment-by-gender performance sparks massive action to get more investment into businesses led by female founders and teams, and the percentage of investment in those businesses exceeds 10% within a year. >> DAD + DAUGHTER MONEY CHATS I’d like every father to talk to their daughters about investing. How you do it, what the risks are, and how you manage them included. Don’t talk about their spending habits. Show them the power of compounding and let that motivate them to save. ------------- Notice how none of those are actions for women alone to do. I’m not saying I want women to be better savers and better investors. They are already good at those things. …they just need more income to save and invest. I’m not saying I want women to ask for more pay rises, or investment, or apply for more grants. They already do. …they’re just awarded them less often than men are. Let's fix it ALL. Pics with fab women: Kat Ross and Sandra Tuohy at Women in Technology WA Inc. (WiTWA)!

𝟭 𝗶𝗻 𝟰 𝘃𝗲𝗻𝘁𝘂𝗿𝗲 𝗰𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘀𝘁𝘀 𝘁𝗵𝗶𝗻𝗸 𝘄𝗼𝗺𝗲𝗻’𝘀 𝗽𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗳𝗼𝘂𝗻𝗱𝗶𝗻𝗴 𝘁𝗲𝗮𝗺𝘀 𝗶𝘀 𝗼𝘃𝗲𝗿𝗿𝗮𝘁𝗲𝗱. 𝟭 𝗶𝗻 𝟭𝟬 𝘀𝗮𝘆 𝘁𝗵𝗲𝘆 𝗱𝗼𝗻’𝘁 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗶𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝘄𝗼𝗺𝗲𝗻. Together with Laura Koch and Elisabeth Berger (JKU - Institute for Entrepreneurship), I surveyed 361 international VCs using a randomized response technique to bypass social desirability bias. The results aren't unconscious bias. The results are open discrimination. And it’s personal. Some of the strongest startups I’ve seen at the University of Hohenheim were women-led, such as Holiroots or Viva la Faba. What a waste of potential. We knew gender bias existed in venture capital. Now we know how much — and where. 𝗪𝗵𝗮𝘁 𝗻𝗼𝘄? One recommendation from our findings that’s both practical and powerful: 👉 Increase the share of women in venture capital. Why it matters:  • Women VCs show significantly less bias.  • Diverse teams make better decisions.  • Mixed teams perform better. If we want fairer funding decisions, we must rethink who’s making them. 𝗟𝗲𝘁’𝘀 𝗻𝗼𝘁 𝗮𝘀𝗸 𝗶𝗳 𝘄𝗼𝗺𝗲𝗻 𝗮𝗿𝗲 “𝗶𝗻𝘃𝗲𝘀𝘁𝗮𝗯𝗹𝗲.” 𝗟𝗲𝘁’𝘀 𝗮𝘀𝗸 𝘄𝗵𝘆 𝘀𝗼𝗺𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘀𝘁𝗶𝗹𝗹 𝗮𝗿𝗲𝗻’𝘁. The paper is open access in Venture Capital—An International Journal of Entrepreneurial Finance. Feel free to share it or use it in teaching, workshops, or policy work. 📄 https://lnkd.in/eN4jfJQx

Earlier this year, I wrote an article for Forbes Finance Council titled “Why Career Success may not Translate to Financial Success for Women.” This topic is personal to me because I realized that despite steady growth and success in my career, my financial achievements were not progressing at the same rate. There was a noticeable gap between my professional success and my financial security. This realization prompted me to assess what career success and financial success mean for me personally. I began by defining career success as my total annual pay and financial success as my net worth—essentially, my total assets minus all liabilities, including any borrowings. Then, I created a benchmark to track whether my career success was resulting in financial growth. I set a rule of thumb that my net worth should be at least three times my annual income. So, if my income is N30 million, I aim for a minimum net worth of N90 million. This rule became my personal yardstick, allowing me to regularly check whether my professional achievements are leading to true financial progress. Identifying this gap has had a direct impact on my investment strategy. With this financial target in mind, I have been more intentional about choosing investments that help close the gap and move me closer to financial independence. I realized that career success, while essential for income generation, is only the starting point. Income generation empowers women financially, but to achieve economic equality, we need to move beyond income and focus on wealth creation. Many women, however, struggle with this transition. It is not only about having an income but understanding how to convert that income into sustainable wealth. For several reasons relating to financial literacy, confidence in managing money, and reluctance toward higher-risk investments-women tend to miss this opportunity. These factors can widen the gap between career and financial success over time. Even if the gender income gap were eliminated, a wealth gap might remain if we do not address these underlying challenges. To truly close this gap, the key is financial knowledge. When women improve their financial literacy, they become more confident in their ability to make informed financial decisions. That confidence, in turn, can inspire them to pursue a wider range of investments and implement risk-adjusted strategies that align with their financial goals. Financial literacy does not just empower women to manage their day-to-day finances; it equips them to make wealth-building decisions that can transform their long-term financial landscape. In other words, while career success creates the income we need to start building wealth, but it is the ability to translate that income into strategic investments that leads to financial security and economic equality. Read the full article here: https://hubs.li/Q02ldcGb0 #career #genderwealthgap #womenandinvesting #financialliteracy