Let's have a show of hands: How many of us have flown out early or slept in late after that last night of networking and skipped those final morning conference sessions? We all have done it a few times, and what did we miss?
Recently, I had both the opportunity and privilege of participating on a conference panel focused on women in fintech. There were over 1,000 attendees at the conference. I was excited and honored to speak about my personal experiences as a woman professional in technology and finance and to do so alongside other successful investors and operators who have followed their own unique paths in navigating a traditionally male-dominated industry.
In the fintech sector, women make up 26% of the global industry, according to a recent article published in Fintech Magazine. Even more starkly, 5.6% of CEOs are women, and a mere 4.8% are
As noted by All Raise, an industry advocate for female investors and entrepreneurs, only 13% of VC "check writers" and decision-makers
Despite recent progress, there continue to be risks and challenges to the flywheel effect that must be addressed. The recent market correction or any potential recession poses a threat to the progress that has been made. During uncertain economic times, LP and VC investors grapple with over-allocations to venture (the "denominator effects") and hard investment decisions. The tendency is to retreat to past familiar investment patterns, repeat founders and established fund managers, all of which may disadvantage newer women-led VCs and startups.
It is crucial to sustain the flow of money and support for women to prevent a step backward.
Forget special offers, ubiquitous branches and promises of convenience. Younger clients want to see state-of-the-art technology and hear good things from friends and family, according to a recent Arizent survey.
Encouraging women to venture into the VC and fintech industries requires challenging the notion of big-company job security. Many women may feel more inclined to pursue opportunities in established companies that offer perceived stability and security. However, by highlighting the unique experiences at startups, alongside opportunities to leverage the flywheel effect available to women in startups and to launching new VC firms, we can shift this perception and encourage women to take the leap.
Leadership optics embodying equality are critical to building diversity in VC and fintech. Female-owned fintech companies serve as an inspiration and attract more women and diverse voices to the industry. We need to raise the profile of the leaders we have to inspire and recruit the next generation.
The problem of attracting and retaining women in fintech is pervasive. We should address the implicit bias in the recruiting and hiring processes to ensure equal opportunities for that next generation. Creating supportive workplaces that offer benefits such as equal pay, extended parental leave (both maternity and paternity), family-related benefits such as childcare services and comprehensive women's health coverage is crucial. Additionally, providing flexible work options, including hybrid and remote working, is highly valued by women and can contribute to retaining and attracting talent.
Fueling the financial flywheel in VC and fintech requires additional support and investment in women and diverse voices by leaders in the C-suite and at all levels. By addressing the current gaps and challenges, we can create a self-reinforcing cycle of success that benefits everyone.
As excited as I was to share these perspectives at the conference, it wasn't surprising that the attendance at the "Women in Fintech" panel was a bit light. Our panel was scheduled on the third and final day of the conference, at 8 a.m. no less. The panels that the conference organizers deem more important tend to get the first day, opening slots. By the end, the crowds dwindle with only the true diehards, usually carry-on suitcases in tow, sticking it out. Despite the thin crowd and the early hour, our conversation was thought-provoking and more energetic than a double shot of espresso. And worthy of being heard. We need more of the industry, men and women, to hear those inspirational voices.
Women in fintech isn't a feminist or female issue, it's an issue for everyone. And it is a topic and conversation that deserves a prime spot. It's time for more sponsors, advocates, key leaders and conference organizers to invite women to the mainstage and give the issue of equity and inclusion a more prominent place on the agenda. The distance from the audience to the stage is wide, but there are a lot of us lined up and asking for our stage call.
