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What our members have to say...
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"Just want to thank you for the service. I have spoken to an investor who wants to invest available funds of £900,000, that's £400,000 above my expectation. We spoke property language for 1 hour and he likes what he hears. We will meet next week and hopefully thrash out something. "
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Gary Gordon - Bluapple Properties Ltd |
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Touched by an angel: Women investors in the Middle East
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Women have proven time and time again that they can match and even surpass men in any given field of expertise in the modern world. So why, then, are they not making inroads with the investment landscape, especially here in the Middle East? Shimi Shah, founder of Tilly & Pinch, offers food for thought.
Did you know that the figure invested in female owned or led businesses is still under 10% in the US and this figure is significantly lower in the Middle East? Of course, there are many successful stories of female investors such as Kay Koplovitz, the founder of Springboard, and Janet Hanson, founder of 85 Broads, but what about women in the Middle East?
We have many examples of women who have become successful at business but how many can you name that have become known for their investment experience? There is a distinct lack of early stage female investors especially in the Middle East.
So why is this case? Is there a difference between male and female investors? If so, what is it? The difference in risk levels, approach to investments, commitment of follow through, or simply a different investment personality between the two genders.
In most cases women do not turn to angel investing until much later in their career and life, once they have successfully exited their own businesses, in many cases when family needs are more minimal. Hence the typical age and dynamics of a female angel is different to perhaps men who start their investment profile at a slightly younger age, and hence are perhaps more active risk takers.
One thing is worth noting, when it comes to angel investing the investment criteria should remain the same for both genders. Normally businesses which cater for gaps in the market and where the market potential is significant are good start to check off on an investment check list.
However there are many more factors that are important, such as personality, founder commitment, financial viability, size of market, competition, intellectual property protection, corporate structure and so on. The assessment of the mentioned characteristics are generic for all early stage investors, however women still have a different approach.
Women like to invest in companies they can relate to. Women are also more risk averse as they will want a clear path forward, and hence will often feel more comfortable with a debt product such as a loan versus pure equity with little or no security. They will be willing in many cases to give up a bit of the upside to protect their initial capital.
In most cases female angel investors are those that have run successful businesses and have exited them and gone onto become investors. In most cases the move is because they can oversee different businesses in comparison to working 24/7 in one business. Most experienced female angels are not passive investors and will want to contribute to their investments either as an advisor or a non-executive.
Female investors also like to invest in businesses that they understand, either through their own experience of the market or because they have a personal interest in the space.
There is definitely a gap in the number of female angel investors compared to men, the same way the gap is equally as defined in the venture capital and private equity market. However, this is changing with formal organisations such as Springboard in the US and Women into Investing in the UK and informal female investment clubs and networks.
However, there needs to be more awareness of angel investing as an asset class, but equally important is also how to manage, grow and exit angel investments. Female angels are definitely a benefit to many early stage companies and start-ups and their insight and intuitional investing should not be overlooked. Women are politicians, business leaders, activists, artists – so why not investors?
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