EBAN sets out to encourage more women to become angel investors

Very few women are active in business angel investment, according to a survey of EBAN members, which showed that fewer than 5 per cent of European business angel network members are women.

Although there are variations within Europe, with countries such as France and Poland reporting that almost a third of business angels are women, the overall figure is low, particularly in comparison to women’s participation in US-based angel networks where 15 per cent of the members are women.

As EBAN looks to expand, women make an obvious target, and EBAN has published a White Paper as part of moves to encourage more women into angel investing.

EBAN sees the effort to bring more women angels to the market as part of a broader effort to stimulate the business angel market and diversify the private investor base so that it includes more women, more ethnicities and more age groups. Developing mechanisms to increase the number of women business angels in the EU would achieve the overall objective of increase business angel investment generally and improve the efficacy of angel networks through the twin influences of diversified intellectual capital and wider business networks.

According to EBAN, the White Paper is a call to action for all concerned with growing a vibrant ecosystem for entrepreneurship, especially policy makers. It suggests measures to stimulate the numbers of women participating in the business angel market to: increase the total number of business angel investors; increase the diversity of skills and expertise within the business angel community; and thereby increase the supply of finance and associated support to early stage growth businesses that are a key platform for economic growth and recovery.

EBAN said the EU should support initiatives to increase the number of women business angels with a goal of achieving a level of 20 per cent of business angel investors in Europe by 2015. To achieve this objective it will be essential to:

• Understand the barriers faced by women in becoming business angel investors. EBAN recommends an initial mapping exercise to identify current best practices for women business angel investment. 
• Implement a programme of best practices combined with incentives to angel networks and public authorities for cultivating women angels.

EBAN recommends that action be undertaken at three levels: EU level; network; and individual. The recommendations are based on activities aimed at increasing the awareness of potential women investors, changing the operations of business angel networks, and developing publicly-funded financial instruments to stimulate active participation of women in this market.