In recent decades, female ownership of businesses has increased steadily, and shows no signs of slowing. However, while women have made major strides in many historically male-dominated fields, the global finance sector is lagging when it comes to diversity.
There has long been a dearth of female involvement in commerce, and e-commerce isn’t any different. , and shows no signs of slowing. However, while women have made major strides in many historically male-dominated fields, the global finance sector is lagging when it comes to diversity. In fact, after a slight increase in 2019, female-led venture capital funding, to just 2.2% of the overall.
E-commerce, on average, requires much less start-up capital; so historically disadvantaged groups can overcome systemic biases and unequal access to funding with less difficulty to seed new e-commerce ventures than in more traditional commerce avenues. Online storefronts are less costly than physical. They require few or no employees to start, and no physical location, so most initial costs go to website creation, operations, maintenance and marketing.
To examine this potential, there’s no better region of the world to consider today than Latin America, which ascended to thearound the globe in 2020 and shows no signs of slowing down. LatAm trails much of the world in financial inclusion and suffers from hugely unbanked or underbanked populations. However, led by Brazil, venture capital pouring into the region has created a mature innovation ecosystem.
Here’s what we can learn from four of the top Latina VCs about e-commerce investment and its ability to catalyze the movement to fund diversity at this moment.“E-commerce has opened so many doors that were previously closed,” said Consuelo Valverde, serial entrepreneur and the Founder and Managing Partner ofin San Francisco.
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