Increase in Women in the Venture Capital and Private Equity Funds Sector

It’s probably no surprise that the venture capital and private equity funds market is predominantly male-dominated. However, recent studies indicate changes – more and more women are establishing themselves in this field.

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In 2022, women working in funds in the Baltic States made up 25.6%. Last year, this number increased to 35%, according to a study conducted by the Lithuanian Private Equity and Venture Capital Association.

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“Last year, we had as many as 11 new funds. Therefore, it’s natural that we see a surge in women in the industry. Additionally, the percentage of women in funds is increasing due to emerging strong female communities, new investment opportunities, and deepening knowledge across the startup ecosystem,” comments Greta Mieliauskaitė, Managing Director of the Lithuanian Private Equity and Venture Capital Association.

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However, only 20% of women are involved in executing and analyzing transactions. This indicates that women working in funds often perform other functions and may not work directly with transactions and their execution.

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Male-Dominated Field

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A typical investor in Lithuania is a man aged 35-54. This group accounted for nearly half of all investments last year. According to the Bank of Lithuania, the number of investing residents increased to 94,100 over the past year, with 66% being men and 34% being women.

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Justina Sirutavičienė, a fund manager at SB Asset Management, agrees that the investment management field is strongly dominated by men. She works in a team where she is the only woman among 9 men.

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“I believe the reason is that, despite modern times, certain professions are still categorized as male or female according to established norms. Women see investing as a fast-paced, male-dominated field, so sometimes they psych themselves out, thinking it’s not for them – that they won’t fit in, won’t succeed, or won’t manage. In reality, women can bring positive contributions to investment management,” says J. Sirutavičienė, who considers herself much calmer and more conservative than many of her male colleagues and sees these traits as strengths.

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Grėtė Bukauskaitė, a fund manager at Lords LB Asset Management, believes there are more men in this field because women usually try to balance more diverse aspects of their lives. For example, they aim not only to climb the career ladder but also to nurture family relationships, maintain a tidy home, and have a social life. Hence, they may sometimes choose to protect themselves.

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“Work in our field is stressful, technical, requiring rational thinking, and not always providing positive emotions. At least from my experience, men see everything more simply. Of course, one could talk about gender discrimination, but I view Lithuania as a state ensuring equal rights, so I don’t think it’s a major factor,” comments G. Bukauskaitė.

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Appeal of Dynamism

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Although men still dominate, more women are joining private and venture capital funds. Interviewed female investors are open about the demanding nature of the field but find its dynamism attractive.

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“You constantly work surrounded by different industries and business models, getting to know many company founders and leaders. This market presents an intellectual challenge as you must continually learn and understand the latest market trends. Moreover, working in this market automatically programs you to work not for today’s standard returns but for future profits, which can be disproportionately high,” shares Jonė Vaitulevičiūtė, Managing Partner at FIRSTPICK and board member of the Lithuanian Private Equity and Venture Capital Association.

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Mathematical Understanding and Enthusiasm

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A good understanding of mathematics and a fondness for numbers contribute to the success of women in this market. According to fund managers J. Sirutavičienė and G. Bukauskaitė, they have always enjoyed subjects dominated by numbers.

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“However, I also disliked routine; I need constant new challenges that bring joy and meaning. For a while, my dad was in the investment world, and probably just seeing screens with flashing numbers and graphs once was enough for me to be captivated by this world. Investing seemed like a great field where numbers, analysis, theory, and action are combined with a bit of excitement,” says J. Sirutavičienė from SB Asset Management, whose father’s warning about the competitive and male-dominated nature of the field did not deter her.

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However, Greta Mieliauskaitė, Managing Director of the Li Lithuanian Private Equity and Venture Capital Association believes that in this job, people you know, rather than numbers, are the greatest asset and main tool. Therefore, one must be active, curious, and constantly interested in what is happening.

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“Although it may seem at first glance that everything in the venture and private equity funds market revolves around numbers and financial knowledge is crucial, the reality is somewhat different. In this industry, so-called soft skills, communication, networking, and relationship building are also very important. Often, it is the synergy of finance and human relations that attracts people to pursue a career in this field,” says G. Mieliauskaitė.

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Stereotypes and Truth

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Women working in funds interviewed by VŽ are candid about not encountering stereotypes or, as G. Bukauskaitė states, successfully ignoring them.

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“If you trust yourself and feel that you are in your element, people around you will respect you accordingly. I have been fortunate because active, strong women surrounded me from childhood, so I’m not inclined to think stereotypically,” says G. Bukauskaitė, a fund manager at Lords LB Asset Management.

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However, certain stereotypes and myths about women in finance do exist. Jolanta Grašienė, a board member at SBA Group and SBA investment management company Capitalica Asset Management, notes positive changes but points out the lower number of female leaders in the investment field.

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“There are still stereotypes that women are more risk-averse, less knowledgeable about finance, or lack strategic thinking. Another common myth is that women choose safer, more conservative investments. Although research has long disproved this myth, showing that female investors generally achieve better investment returns, stereotypes often lead to women being undervalued or not taken as seriously in negotiations or discussions,” she comments.

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On the other hand, the investment sector has fewer women partly because they are less likely to choose this field. J. Grašienė is convinced that promoting the investment field among women should start from a young age.

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“Additionally, we need to publicly share successful career examples of women,” she emphasizes.

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The Role of Self-Confidence

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Interviewees agree that the biggest challenge for women working or aspiring to work in the investment industry is a lack of self-confidence.

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“I participated in an investor event in Helsinki where out of about a hundred participants, there were only a few women. Looking around, an internal critic inevitably emerges, highlighting that you are surrounded only by men. Sometimes this can paralyze you and even make you doubt yourself,” says G. Mieliauskaitė, adding that one should not pay too much attention to this, as usually, dominant men in the industry and at such events strive to make women feel comfortable in this environment.

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“Funds are also definitely trying to involve more women, encourage them to grow and improve. In this case, perhaps women themselves need to learn from this and have more self-confidence,” she notes.

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J. Grašienė also highlights the lack of support from close ones, financial literacy, and knowledge gaps.

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“Social expectations and prevailing attitudes about traditional gender roles and responsibilities in society also impact and deter women from taking on financial risks or choosing investment as a career. Another reason is that investment activities have historically been seen as more masculine, which can limit women’s choices,” she lists.

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Jonė Vaitulevičiūtė from FIRSTPICK believes that there is still a lack of accessible material introducing different asset classes, possible risks, and investment tools.

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“It’s encouraging to see more various clubs emerging that educate women about potential investments, expand connections, and build networks with other women who already have investment experience. However, it still requires considerable time and effort for this concept to take hold and for us to see a significant change in the number of investing women,” she emphasizes.

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Interviewees agree that for a more significant change in this field, society needs to undergo cultural shifts, promote and publicize successful examples that inspire other women to pursue a career in investing.

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“And we should start breaking stereotypes about ‘male’ and ‘female’ professions in schools, encouraging activities that may interest a child as an individual, regardless of gender,” says J. Grašienė.

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Original post by Verslo Žinios in Lithuanian: https://www.vz.lt/verslo-valdymas/2024/09/12/rizikos-ir-privataus-kapitalo-fondu-segmente-daugeja-moteru

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