Past research shows that female investors are more risk-averse and cautious. However that cautiousness appears to abate when there are more women in an investment group. According to research conducted by the University of New Hampshire’ Center for Venture Research, angel investment groups that have >+= 10% women invest more. The research, consistently primarily of surveys of nearly 200 angel investment groups in the US, showed that groups with more women angels (10% or more) made larger investments in companies under consideration…or made investments in more of the companies under consideration.
Why is that? The Center for Venture Research attributes it to women being more comfortable and not being concerned about what their male investment peers think when there are more women. I.e., the whole “Strength in numbers” concept. Female angel investors apparently let go of the stereotypes and have more confidence in their abilities when there are more women around. With more women angels, there’s less focus on the investor’s gender and more focus on the investor’s investment approach.(Read more in the Inc.com article on the subject, which this summary is pulled from.)
So more women should join existing angel investment groups…or consider forming more groups on their own. (This latter is my opinion, not what the researchers recommend.) To make a prudent investment in any company, one needs to be comfortable all around. The more comfortable you are, the more yourself you can be, the more you allow yourself to trust your judgment and not second-guess.