How Investing in Education Could Activate the Trillion-Dollar Female Economy
As women, we make up 51% of the population (hello to our sister company!). Yet, we receive only 1.9% of all venture capital, and on top of that, female-founded companies perform 63% better than all-male teams.
How can Canada’s economy reach its true potential if 51% of the population isn’t fully participating?
Born from The51’s vision to democratize access to capital and unite women’s untapped wealth, Movement51 became the jumping-off point. To build the next generation of women and gender-diverse investors, it starts with education.
Leaving the gender gap wide and ignoring the female economy leaves trillions of dollars on the table. As women's empowerment gains momentum worldwide, recognizing the power of education as a catalyst for economic growth is key. By delving into the potential of female education, we'll discover the benefits for individuals, societies, and the global economy.
Understanding the Female Economy & Its Impact
The female economy represents a colossal market often overlooked and underestimated. As we mentioned, women make up half of the global population and control or influence significant purchasing power—a whopping 85% of all consumer spending, as a matter of fact.
This is important because the untapped potential of the female economy comes from all angles: the number of female investors there are (FYI, only 21% of Canadian investors are women), how many female founders receive investment, and funding dollars that go toward technology that solves the problems and meets the needs of female consumers.
Here’s where that trillion-dollar number comes into play: if women invested at the same rate as men, there could be more than $3.22 trillion of additional capital to invest globally.
Investing in women's education not only benefits women individually but also has a ripple effect on families, communities, and economies at large. When women are educated and empowered, they contribute to innovation and sustainable development on both sides of the table—as investors and founders.
The Power of Investing in Education
The problem is aspiring investors and founders can’t come together to grow, fund, and champion the feminist businesses our world needs most if they don’t know where to start.
Let’s take a look at the bigger picture.
Women’s participation in the workforce has been gradually increasing for decades. In 2022, Canadian women 15 years and older represented nearly half (47.6%) of the labour force, compared to 37.6% in 1976.
Not only expanding in number, but the modern female workforce is becoming more educated, too. As of 2019, almost half of the employed female population ages 25-64 held a bachelor’s degree or higher—that’s quadruple the number of women with degrees since 1970. In comparison, the number of men with degrees only doubled during this same period.
Growing workforce participation paired with an increase in education has led to a dramatic rise in women’s financial power. Canadian women control $2.2 trillion in assets today, and by 2028, that's expected to nearly double to $4 trillion.
Yet despite making up a significant percentage of the wealth market, only 1 in 10 women globally feel they fully understand investing, and 28% feel confident about investing their money.
See where this is going? Making education accessible is the answer to increasing confidence and financial acumen, which ultimately leads to women’s full participation in all levels of economic decision-making.
Breaking Down Barriers & Bridging the Educational Gender Gap
Investing in education equips women with valuable knowledge, skills, and resources necessary to seize economic opportunities and thrive in this traditionally male-dominated sector—not to mention making the world a better place since 71% of women prioritize investments with impact.
But seeing as women investors are 2.5 times more comfortable taking investment risks with women advisors, that’s a challenge when we’re looking at abysmal numbers like just 15% of partners in venture capital funds are female, and only 2% of angel investors in Canada are female.
Between biases, the lack of resources, and discriminatory practices, women have faced numerous barriers to education. Investing in women’s education involves breaking stereotypes and dismantling these barriers to create an inclusive educational ecosystem.
By prioritizing equal access to quality education, programs, and support networks, we can level the playing field and ensure equal opportunities for women and gender-diverse individuals.
Greater Economic Impact & Changing the World Through Investment
Remember how we mentioned that if women invested at the same rate as men, there could be more than $3.22 trillion of additional capital to invest globally? Consider this: over $1.870 trillion would be dedicated to responsible investing.
These numbers will continue to climb when you realize that women’s investments outperform men’s by about 0.4%. If that doesn’t seem like a lot upfront, compounding performance replicated over 30 years could see women ending up with a 25% bigger portfolio.
Putting higher returns into investing through a gender-aware lens can change the world. By bringing gender analysis into investment analysis and decision-making, new dimensions open up to the nature of investments.
Think: investing in more women-owned or led businesses, investing in organizations that promote workplace equity, or investing in organizations that offer products or services that sustainably improve the lives of not only women but all people.
Beyond Lessons and Lectures
Since our inception, M51 has been addressing financial inequalities through innovative educational programs, accessible community events, and strategic partnerships with academic institutions, like-minded corporations, and non-profits.
The Financial Feminism Investing Lab (FFIL) and Early-Stage Investing Bootcamp series help aspiring investors improve their financial acumen, giving them everything they need to begin investing with confidence and demystifying the entire investment journey.
The Founders Lab helps entrepreneurs build a toolkit for their fundraising strategy and create their personalized playbook, taking the guesswork out of navigating investors.
But we know that education goes beyond programming, so beyond the lessons, we put concepts into practice and have built an incredible community that support and uplift one another.
To date, our impact has included:
FFIL participants experienced an average 30% increase in investment confidence once completing the lab
Founders Lab participants reported an average 76% increase in investment readiness
200+ women and gender-diverse Canadians trained
$856k of capital invested into early-stage companies and funds
96 jobs created
232% increase in revenue growth from invested companies
… and much more.
You can learn more about our mission and how we create impact in the full report.
By recognizing the importance of investing in women’s education, breaking down the existing barriers to close the gender gap, and working to provide equal opportunities, we create a brighter future for individuals, communities, and the global economy.
Aspiring investors have a unique opportunity to contribute to this transformative journey by embracing education-focused investments and supporting initiatives that champion women and gender-diverse individuals.
Together, let's activate the untapped potential and reap the rewards of a more equitable and prosperous world.
