So, you want to invest in more women? But do you really know how?

There has been a litany of well-meaning and well-crafted press releases hitting the news media of late; each laden with buzz words, aimed to convince the reader of the social responsibility of the espousing investment vehicle. They’ll make claims that they’ve already invested in female founders, that they have women in leadership roles, on the board and littered through the organizations at all levels. They’ve leant in. 

But, in the tech industry particularly, these announcements are just scratching the surface.

Investing in women doesn’t mean just investing in more male-oriented technologies run by women. It also means looking at women’s areas that are under-represented for investment – in spite of enormous, multi-billion-dollar prizes.  

Like the beauty industry. 

The company I run is one of the luckier ones – we are backed by the capital of some of New Zealand's smartest investors including Sir Stephen Tindall (K1W1), Theresa Gattung (SheEO), Rob Campbell (Tourism Holdings and SkyCity), Mike Carden (Sonar6) and Scott Gilmour (founding member of Ice Angels). But even for us, there is not a week that goes by where a flippant, “I don’t get it”, “It’s not a space I understand” or “didn’t someone already do something in beauty and fail?” occupies my inbox. Or the “but what about Treatwell?” response, because apparently one beauty technology success story, even though it’s a completely different offering, is supposed to be enough to tick the box for the whole category.

Of course, capital raising is a frustrating, tough business at the best of times under great conditions. However, in an era where the professional outfits are trying to attract unicorns and talent to join their bandwagon, and they’re actively pushing the diversity agenda, they need to put their money where their mouths are and actively begin to understand more about the female demands. 

How are we under-serviced? Which categories are being left behind or risk being outdated? And what does this mean for female consumers and for the small-medium businesses of the United Kingdom? For example, 85% of all hair salons are still using pen and paper, but yet more than a third of 18-29 year-olds booked their latest appointment online. This same group are also more likely to opt to use a freelancer instead of going to a salon, opting to bypass an entire institution and centuries old industry. And why? Because the salon hasn’t kept up with the demands of the modern consumer.

Maybe it all seems frivolous, perhaps your mind automatically shuts off when you hear “beauty”. But, with over $6.5bn spent annually on beauty services and a massive ￡2,500 spent individually per annum – the prize is no small posy. It’s a queen’s ransom for the smartest outlier, willing to strategically place themselves in the middle of the pain point and deftly transform the industry begging for change. Every other industry has done it. The consumer demands it. The modern consumer is demonstrating rampantly their disdain for the broken pieces. Money is pouring out all over the place, begging to be mopped up.

Yet investors continue to reject even the smartest, proven, backed and partnered software. Because they don’t personally spend in the space and have no emotional investment.  

So, cutting to the chase: if you’re not backing female-centric categories, but publicly stating your support for female founders, then you’re only paying lip service. Nothing will really change for women; the cycle of success will not improve, and glass ceilings will not be smashed through. Always doing what you’ve always done, but adding heels, will not change a single thing.