Where venture capitalists fear to tread, women angels are marching ahead.

The importance of angels to female founders cannot be understated: 27% of angel portfolio companies have a woman CEO, according to the Angel Funders Report 2020 by the Angel Capital Association. Over the last 10 years, the percentage of women becoming angels has nearly tripled—increasing from 11.3% in 2009 to 29% in 2019. This surge is playing a critical role in the earliest-stage, female-founded companies getting funding. However, less than 3% of all VC-funded companies have a woman CEO, according to Catalyzing Change in Equity Investing: Disruptive Models for Financing Women's Entrepreneurship, Diana International Impact Report January 2020.

If we want a robust and inclusive recovery, the economy has to be firing on all cylinders. That includes access to funding for innovative, women-led companies. If not, the disparity will lead to a slower, uneven economic recovery. One company—Portfolia—is leveraging the rising financial clout of women to become investors in its venture funds. Women control 51% of the personal wealth in the US, according to New York Life Investment Management.

The innovation ecosystem has long underinvested in female founders. After making some progress, the numbers are retreating. According to Q3 2020 Pitchbook-NVCA Venture Monitor, investing in startups with women on the founding teams has dropped, from a high of 17.8% in 2017 to 13.0% in Q1-3, 2020.

Underinvesting in female-founded healthcare startups is particularly problematic. Understanding that women and men are biologically different has led to identifying gaps in women's health outcomes. Women's healthcare is a market that is ripe for disruption, but most male VCs don't get it. Before 2016, the term femtech didn't even exist. The term was coined by Ida Tin, a Danish entrepreneur who founded Clue, a period- and fertility-tracking app. Now, femtech is projected to be a $60 billion market by 2027, according to Emergen Research.

Read the full article about funding female startups by Geri Stengel at Forbes.