Gender equality in finance has been a hot topic for decades – while equality remains far from being attained. Fast Company reports the latest research.
The data indicate that we still have a long way to go. In 2019, less than 3% of all VC funds went to women-led companies, more than 90% of all decision-makers at VC firms were men, and despite representing 39% of the nation’s business owners, women accounted for only 4% of all business revenues. When we factor in race and ethnicity, the journey to gender equity becomes even more strenuous. Black women, for instance, represent a meager 0.2% of all venture-backed founders, less than 4% of the VC workforce—virtually none of whom are calling the shots—and just 3.5% of women business owners.
While this is objectively wrong, it’s also bad for business. Gender equity is a massive untapped resource in the entrepreneurial ecosystem. VCs could expand their projected returns to investors by $4.4 trillion by committing to equitable investing practices. What will it take to catalyze the efforts necessary to achieve gender equity in entrepreneurship? Corporate venture capital (CVC) may be able to lead the way.
Historical Performance And IFISA Process Guide
That figure is the result of over £23 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.