16-04-2025
Women investors fund female founders to realize good returns.
Investing in female-founded ventures offers women investors a powerful dual advantage: compelling ... More financial returns and the ability to foster meaningful societal impact.
Leveraging her unique background in media, Catherine Gray is tackling the stark venture capital funding gap—where solely female-founded companies received just 2.1% of US VC in 2024. She sees it as a structural failure and a missed investment opportunity. Through her influential film, Show Her the Money, and the subsequent launch of the Silicon Valley Women Founders Fund, she's demonstrating how, using storytelling and direct investment, women investors can work together to unlock the proven potential of women entrepreneurs and reshape the investment landscape for both profit and purpose.
Catherine Gray wasn't always immersed in the world of venture capital. For 15 years, she was a leading account executive in cable television advertising. She then left that role to become vice president of advertising at the first gay cable network. That move marked a turning point in her career. She would dedicate her work to projects that make a meaningful difference.
Gray produced a film supporting same-sex marriage and saw how powerful storytelling can help drive real change. That experience now drives her work in venture investing, where she's tackling the deep gender gap in venture capital.
The numbers paint a stark picture: In 2024, companies founded solely by women received a mere 2.1% of all venture capital dollars in the U.S., according to Pitchbook. Teams with male and female founders secured 20.9%, while male-only teams received the vast majority at 77%. Gray saw not just a discrepancy but a missed opportunity.
The persistent under investment in female-founded startups is a challenge and a significant lost opportunity for investors seeking strong returns.
She believes investing in women-led businesses is not just a way to make a social impact but also a huge investment opportunity.
Recognizing the need to educate and engage a wider audience, Gray returned to film making. She created Show Her the Money, raising $1 million for its production.
The movie's goal wasn't just to recognize the problem but to make investing in venture capital feel impactful and within reach of women investors by telling an engaging story. The film struck a chord. It became a catalyst, sparking a global movement.
Due to high demand, what started as a planned 50-city tour ballooned to over 150 screenings worldwide, proving Gray's thesis: Storytelling could ignite understanding and enthusiasm for changing the venture landscape. This momentum also led directly to her co-founding the Silicon Valley Women Founders Fund, turning awareness into action.
Understanding how women invest reveals why they are particularly well-suited for venture capital, an asset class poised for growth and impact. Research highlighted in the How Women (and Men) Invest in Startups* shows women are risk-astute investors. They recognize the importance of having a diversified portfolio by investing in different asset classes, such as private companies, and diversifying within the asset class.
A long-term investment strategy can lead to more stable returns and lower costs, according to BlackRock. It takes time for an investment in a startup to reach its potential. This strategy aligns with women's tendency to invest for the long term.
VC funds address practical considerations. Women often value investment guidance from financial advisors or the experienced partners managing a VC fund. When time is tight, like for most women, having professionals advising you on your investments can be a smart move. VCs do this for the investments they make. Many emerging manager funds also have lower minimums to encourage women to invest in this asset class. This makes the investing venture more accessible.
Beyond delivering a return on their investment, women frequently prioritize investing in ways that make a positive social impact, according to How Women Invest's research report. Catherine Gray echoes this, emphasizing that 'venture capital uniquely allows investors to 'vote with [their] money' to support innovation that matters.' She notes the excitement of VC comes from meeting founders, gaining early access to groundbreaking ideas, and participating in building the future—blending wealth creation with tangible impact.
Gray contrasts this with angel investing, suggesting VC funds offer built-in expertise, deal vetting, and inherent diversification, making the asset class feel less daunting and more aligned with the strategic, impact-oriented approach many women favor.
Born directly from the momentum generated by the Show Her the Money film, the Silicon Valley Women Founders Fund represents Catherine Gray's commitment turned into tangible action. With a target of $100 million, the fund focuses on investing in pre-seed and seed-stage women-led technology companies across various sectors like FinTech and Climate Tech, ideally seeking innovations incorporating an AI component for efficiency.
However, the fund aims to provide far more than just capital. Leveraging the corporate venture expertise of Gray's partner, John Majeski (formerly with Dell, HP, and Lenovo), it offers portfolio companies a strategic advantage, helping them understand what large tech firms look for in acquisitions or partnerships.
Their venture studio offers hands-on support in key areas like marketing, legal, and accounting—helping founders navigate the challenges that often stall early-stage startups. Just as important, the fund backs founders who share its values, placing as much weight on character as on innovative tech. True to its mission, 1% of the fund's profits go to nonprofits that empower women and girls.
This initiative reflects Gray's hopeful outlook on today's investment landscape. Where others see roadblocks, she sees openings to create meaningful change. She highlights the 'great wealth transfer' as a pivotal moment—one where women are gaining unprecedented control over wealth and, with it, greater influence in venture capital and family office investments. It's a moment ripe for funds like hers to thrive.
Gray also sees her growing platform as a way to bring together women innovators from around the world. Her fund is just one part of the broader Show Her the Money movement, which includes an upcoming book, educational programs, and a potential docu-series—all focused on building a more inclusive and forward-thinking future.
Investing in female-founded ventures offers a powerful dual advantage: compelling financial returns backed by data, and the ability to foster meaningful societal impact. Women investors and their allies can wield their investment power and shape an innovative economy that is more representative of society and their needs.
