How is capital flowing to women and gender-diverse leaders and communities?
4 min read · March 8, 2024
New Power Labs
How is capital flowing to women and gender-diverse leaders and communities?
In 2015, Canada was in the top ten of 95 countries in closing the gender parity gap. Yet, progress has stalled over the past decade — last year, Canada ranked 30th out of 146 countries.
Closing the gap means economic prosperity: a McKinsey report found that if we close the gender parity gap, we could add $150 billion into Canada’s GDP.
At the current rate of progress, it will take 169 years to close the global gender gap in economic participation and opportunity. Funders and investors across the capital spectrum play a crucial role in accelerating this progress.
Note: Most data sources cited do not specify whether their definition of 'women' encompasses gender-diverse communities such as trans people, non-binary individuals, and two-spirited people. There is limited intersectional data available.
Full-text version of infographic
Women+ represent 50.6% and non-binary persons represent 0.13% of Canada’s population. (StatCan, 2021)
Transwomen represent 0.1% of people aged over 15 years old in Canada’s population. (StatCan, 2021)
Representation in Asset Management:
Only 13.7% of key decision-makers in the global investment management industry are women. (Mercer, 2023)
It will take another 200 years for female asset managers to reach gender parity (“Alpha Female report,” Citywire, 2020)
Entrepreneurship
51% of women business owners faced challenges when trying to access financing for their businesses. (”Empowering Women in Business,” Canadian Federation of Independent Business, 2023).
18% of all businesses are majority owned by women in Canada. More than 99% of these are small and medium-sized enterprises (”The State of Women’s Entrepreneurship in Canada,” Women Entrepreneurship Knowledge Hub, 2023).
Philanthropy:
Out of $486.3B of total grants in the US, 1.8% were given to women and girls’ organizations. (“Women & Girls Index,” Equitable Giving Lab, 2020)
Data specific to philanthropic funding for women and gender-diverse leaders and communities in Canada is not available.
Impact investing:
Data specific to impact investments for women and gender-diverse founders in Canada is not available.
Venture capital:
Women comprise just 15.2% of partners at Canadian VC firms, 11.8% of managing partners, and 10.3% of venture partners. (Female Funders & Highline Beta, 2019)
1.8% of venture capital funding in the US went to companies with all-women founding teams. (TechCrunch, 2023)
0.34% of US venture capital went to Black women. (Cruchbase, 2021)
Women-owned businesses are estimated to receive only 4%* of VC funding in Canada. (News Release from the Government of Canada, 2022) *This figure is derived from a statement made in a speech.
Accessible, consistent and comprehensive data on venture capital funding for women and gender-diverse leaders in Canada is not available.
Debt and access to financial services:
22% of financing applications from businesses owned solely by women were rejected outright, which is higher than the average for all businesses (15%). (”Empowering Women in Business,” Canadian Federation of Independent Business, 2023)
Less than 30% of women business owners felt that banks, credit unions and government lenders recognize and respond to their goals, wants and needs. (“Impact of the COVID-19 Pandemic on Women Entrepreneurs,” Women’s Enterprise Center, 2020)
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