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Banking on gender diversity

Mon 08 November 2010

, Alberta Opoku, LEAP!

While we continue the debate about whether or not to blame the credit crunch on men, venture capitalists are making good money. Three Dutch ladies are literally banking on gender diversity with Karmijn Kapitaal!

Did the world get in such a deep financial mess because men were in charge of our banks and financial institutions? If women were in the same powerful seats would they have been equally reckless? The answers to these questions are still being debated in opinion articles and research. Meanwhile it’s proved common sense that businesses with a healthy gender balance perform better. 

Women 
So, while organisations and opinion leaders continue the blame-debate, venture capitalists are making millions if not billions with gender-balanced businesses. What drives these venture capitalists? Not cash or deals, but women people, revealed CB Insight’s ‘Venture Capital Human Capital Report.’ 

 

Entrepreneurs
Of the big three states – New York, California and Massachusetts - only 7% of entrepreneurs starting online ventures in New York state are women. BUT all-female teams get a median of $4.5 million in funding (that’s $2.2 million more than all-male teams) and $4.1 million more than mixed-gender teams. The report focused on the founders of 185 private, early-stage internet companies that raised their first round of institutional venture capital funding in the first half of 2010.

Warren Buffett
Mid-2009 Zurich-based Naissance Capital launched its Women’s Leadership Fund, introducing it as follows: “Warren Buffett said he ‘was privileged to work during a period when it was only necessary to compete against half of the population’.” Back then, according to this New York Times article, Naissance intended to invest some $200 million in 30 to 40 companies around the globe, while aiming at a $ 2 billion total size. However, since the launch, Naissance hasn’t come forward with any information regarding the performance of its Women’s Leadership Fund.

Dutch companies
Let’s look closer to home. Amsterdam-based Karmijn Kapitaal was launched some six months ago with one objective: to invest in gender-balanced businesses in the Dutch manufacturing, trade and services industries. “That means 30 percent of the executive and supervisory boards must be women, or men,” Désirée van Boxtel of Karmijn Kapitaal explains. 

 

Competition
Three Dutch ladies with a background in banking and investment, consultancy, and private equity run Karmijn Kapitaal. So what sets them apart from the competition? Désirée: “We bring diversity to the companies we invest in. Asides from money, we bring in experience and dedication. This means that when necessary we’ll involve people with the right experience from our networks.” 

 

Operations
Karlijn Kapitaal aims at a € 50 million fund, and will start operations in early 2011. So how gender balanced is the venture capitalist itself? Désirée: “Admittedly, we as a team aren’t gender balanced at all, but our supervisory board is. What matters more is that as women we’re able to give Dutch organisations that are also run by women access to capital they would otherwise miss out on for unknown reasons.”