Men dominate financial services and women-led businesses aren’t getting the investment they deserve, according to Goldman Sachs.
The New York City-based investment banking, securities and management giant is doing something about it. Goldman plans to invest $500 million of “our firm’s and clients’ capital” in private, late-stage, women-founded, women-owned or women-led companies, wrote Stephanie Cohen, chief strategy officer for Goldman Sachs, in a June 19 blog.
Named “Launch With GS,” the initiative includes directly funding companies as well as seeding women investment managers who are starting their own funds.
Just for perspective, Goldman Sachs had total assets of $916.8 billion in 2017, and 37,300 employees as of 2018.
Men make up 89 percent of partners at venture firms, and companies founded by men raised 36 times more money in 2017 than those founded by women, according to the National Venture Capital Association and PitchBook Data Inc.
“Women-led businesses don’t seem to be getting the investment they deserve,” Cohen wrote, citing these stats:
Another Goldman Sachs program called 10,000 Women was launched 10 years ago to develop women-owned businesses in countries including Brazil, India and Nigeria. The program donated $100 million and taught more than 10,000 women business skills.
“Our goal with Launch With GS is to generate strong investment returns,” Cohen said. “The bottom line is this makes sense for our business – because investing and helping companies grow is our business. We also hope it makes a difference for women who have big ideas but find themselves cut out of the funding ecosystem.”
— Goldman Sachs (@GoldmanSachs) June 19, 2018
Your CEO needs to listen to the women and quit supporting Trump. #EndFamilySeparation
— JAB (@bjudy90) June 20, 2018
I wonder what this new group thinks of their CEO’s comment on Trump? Wait, they might already have become complicit. #complicitgoldmansachs
— Vincent Bezares (@vincebezares) June 20, 2018
This #WorldRefugeeDay, we stand with refugees who, more than ever, need protection and support. Learn more about #GSGives' ongoing commitment to helping address the Syrian refugee crisis in the education space and beyond: https://t.co/8N73rvH8Wr pic.twitter.com/AWmyBZeus7
— Goldman Sachs (@GoldmanSachs) June 20, 2018
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