Venture capitalism dollars fund startups and businesses in pretty much every industry — but women, people of color and those in LGBTQ communities rarely see that money.
For example, American women as a whole get just a little more than 2 percent of venture capital funding, and women of color get only about 1 percent.
But overlooking these potential innovators means investors could be missing out.
A BMO Wealth Institute report from 2015 said women controlled 51 percent of the personal wealth in the U.S. The same report estimates the sum of $14 trillion that women controlled would rise to $22 trillion by 2020.
A report commissioned by American Express found that women-owned businesses have made major strides in the past 20 years and are growing in number 2.5 times faster than the U.S. average.
But the funding — from loans or venture capitalists — isn't keeping up. Part of the reason could be that some of these businesses don't have a very long history.
But that's why venture capital funding could be key to jump-start businesses run by women.
At the recent United State of Women 2018 Summit, Backstage Capital's founder announced a new initiative — to the tune of $36 million for black women entrepreneurs. On Twitter, she called it the "IT'S ABOUT DAMN TIME" fund.