Welcome to our #123 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we highlight a report by J.P. Morgan Private Bank about female-led high-growth businesses.
Whilst female-powered businesses have attracted a record £5.05bn in equity investment (2021), the data shows that female founders give up a larger percentage of their ownership than male founders.
However, we know that women need stronger networks made up of operators and expert advisers plus they continue to experience more push back (than their male peers) every time they negotiate.
***
And you can review the news in brief so you stay on top of global financial, economic and investing trends.
I hope you enjoy this week’s newsletter.
Until next week,
Jana
Report: female-led high-growth businesses and ownership
The data shows that when female founders give up a larger percentage of their ownership than male founders
J.P. Morgan Private Bank has released the results of its second-annual Top 200 Female-Powered Businesses report, as per Business Leader.
Female-powered refers to high-growth companies that are founded or led by women, majority-owned by women, or have a management team that is at least 50% female.
And whilst female-powered businesses have attracted a record £5.05bn in equity investment (2021), the data shows that female founders give up a larger percentage of their ownership than male founders.
Here are the key facts from the report:
The rate at which women own less of their companies as equity investments increase is almost twice that of men, a 25% reduction compared to 13%.
These 10,647 businesses are contributing significantly to the UK’s economy, reporting record sales of £84.7bn and a total headcount of almost 700,000, meanwhile attracting £5.05bn of equity investment in 2021.
Whilst more than 30% of high-growth companies powered by women reported increasing employment more than 20% over the last decade, employment growth versus men during the most recent filing period decreased nearly 42% (a testament to Covid-19 disproportionately impacted women).
Sector-wide, although digital sectors make up many companies powered by women in 2021, it was within industries such as clothing, clothes shops, healthcare products and e-commerce that female-led businesses excelled against the wider market.
Based on research…
…gender bias continues to cloud the fund raising process which is why women-founded startups are often deemed a ‘bigger risk’ than those led by their male counterparts.
We know that ‘old school’ investors tend to negotiate harder with female founders. They often undervalue their business and claim a higher equity stake.
Women also tend to experience far more push back when negotiating (in general). This may be because women setting a higher valuation (to retain more equity), for example, goes against the gender norm of ‘just being nice’.
And the data backs this up. Research suggests that women who negotiate are more likely to be refused than their male peers. Women are aware that there is a social penalty for being deemed 'too pushy’ and are often labelled as ‘aggressive’.
Female founders also need stronger networks made up of operators and experts who can advise on how to win over investors. And importantly, to know when to walk away from the wrong investor so they do not give up more equity than they should.
What next?
News in Brief
Financial news
The US Federal Reserve tightening expectations climbed following recent jobs report. Market is now pricing for Funds Rate to be 3.48% end of December.
Strong US jobs confirm July 75 basis points Fed rate hike. Payrolls rose 372k in June – remaining strong relative to prior month's 384k figure and surpassing consensus expectations at 265k.
German 10 year inflation expectations have collapsed as stagflation worries now give way to recession worries.
The Euro sank to a 20 year low against the US Dollar as investors pared bets on the European Central Bank interest-rate hikes given the growing risk of a recession in the region. The Euro fell as much as 0.9% to 1.0331, its weakest level since December 2002.
The pound climbed Thursday as UK Prime Minister, Boris Johnson resigned. Investors are now weighing up the future of the UK’s economic leadership and plans to tackle inflation, which is running at a 40-year high.
UK’s ‘unsustainable’ debt could reach 320% of GDP in 50 years, OBR warns. Taxes ‘must be raised to offset mounting cost of ageing population and falling fuel income’.
The UK’s employment market is losing steam, in a sign of the challenge that will face the next government to strengthen the struggling economy.
Biotech stocks have added $200bn+ in market value over past 3 weeks after sector sentiment got a boost from reports Merck & Co. was interested in cancer drugmaker Seagen. The Nasdaq Biotech Index has rallied roughly 20% since the first report of a potential tie-up.
Crypto: bitcoin, ethereum, DeFi & NFTs
Bitcoin, ethereum jump as crypto market stages mini rally. A day after the U.S Independence day, bitcoin was up 5% (over 24 hours) and is currently trading at $21,200+ today (Sunday). Ethereum (ETH), gained 9% to $1,148 and is currrently trading at $1,187+.
The Treasury has given the White House its framework for future international cooperation on crypto. As the department announced on July 7, it has responded to the provisions of US president Joe Biden's March executive order on digital assets, which called on agencies to create a series of reports.
Bitcoin burdens balance sheets of Tesla, Block, MicroStrategy. Major stocks led by crypto bulls Elon Musk, Jack Dorsey and Michael Saylor are together down more than $2 billion on their bitcoin to date.
Investors waiting to deploy vast tablecoin reserves, analysts say. Major stablecoin supplies point to an abundance of patient investors ready to scoop up cheaper cryptocurrency prices.
Justin Sun says he's ready to spend $5bn on acquisitions as crypto firms struggle.
Ethereum name service domain bought for $315,000 in second-biggest ever sale. The ENS name 000.eth was sold for 300 ETH ($315,000).
Coffee Break? Read This
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
The Purse Ltd. Copyright 2022 & All Rights Reserved.
The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.
Share this post