What is Gender-Lens Investing?

Let’s set the scene: you’re scrolling through LinkedIn and spot yet another buzzword-laden post. “Gender-lens investing is the future!” it declares. If your first thought is “What on earth does that mean?” you’re not alone. But stick with me, because this buzzword is worth understanding—and it’s not as complicated as it sounds.

Gender-lens investing (GLI) is about investing with a purpose—directing capital to initiatives, companies, and funds promoting gender equity. For instance, companies like Patagonia, which invests in women throughout its supply chain, and Ellevest, a women-focused investment platform, exemplify GLI in action. By supporting businesses like these, GLI focuses on creating opportunities and breaking down barriers for women and gender-diverse individuals.

The “Lens” in Gender-Lens Investing

The term “lens” is key here. It’s about looking at investments through a specific perspective—in this case, gender. This could mean:

– Supporting companies led by women or gender-diverse founders.

– Investing in products or services that benefit women and gender-diverse communities.

– Ensuring companies have equitable workplace policies and representation at all levels.

It’s not just about doing good for the sake of it (though that’s important). It’s about recognizing that gender equity is good + good for business. Research consistently shows that diverse teams are more innovative, and companies with women in leadership outperform their peers. So yes, this isn’t just about altruism—it’s also a savvy financial move.

Why Does Gender-Lens Investing Matter?

Let’s crunch some numbers. Globally, women receive just a sliver of venture capital—2.1% in 2023, to be exact. And while progress has been made, we’re still far from an equitable playing field. Gender-lens investing aims to bridge this gap by:

1. Redirecting Capital: Ensuring funds reach women and gender-diverse entrepreneurs who’ve historically been overlooked.

2. Driving Change: Encouraging companies to adopt policies and practices that promote gender equity and reduces harm to women.

3. Creating Impact: Building a world where economic power is more evenly distributed—and the results benefit everyone.

The Myths and Misconceptions

Let’s debunk a few myths about Gender Lens Investing:

– Myth 1: It’s just about women. While much of GLI focuses on women, it’s about breaking down barriers for all gender-diverse individuals.

– Myth 2: It’s a niche market. Actually, gender-lens investing is growing rapidly, with funds and initiatives popping up globally such as Sephora’s Accelerate Program or Cartier’s Women’s Initiative.

– Myth 3: It’s charity.  Nope! This is about smart investments that deliver strong returns while creating positive social change.

How to Get Started

Feeling inspired? Here are a few steps to dip your toes into the GLI waters:

Do Your Research: Look into funds or organizations with a gender-lens focus.
Ask Questions: Whether it’s your financial advisor or a company you’re considering investing in, consider how they promote gender equity.
Start Small: Even a small investment in the right direction can make a difference.

An Opportunity For You

At Spring, our Invest Together programs connect impact investors with impact founders who are driving change. We’re currently recruiting accredited investors for Invest Together in Women-Led Impact. If you’re interested in supporting founders whose innovative solutions are often overlooked in funding, this is your chance to make a meaningful investment.
Learn more and apply here.