Claire Díaz-Ortiz has been many issues over the course of her profession — an angel investor, an early Twitter worker (who notably obtained the Pope on Twitter), the founding father of a nonprofit, a broadcast creator and an entrepreneur.

Now, the globe-trotting, multi-hyphenate polymath is including “accomplice” to her checklist of titles as she joins the Latin American funding agency Magma Partners to move up its funding actions throughout South America’s southern cone and launch a brand new firm-wide initiative to put money into extra ladies entrepreneurs.

With the appointment, Diaz-Ortiz joins a small but growing list of women investing in startups across the Latin American region, which is topic to the identical woeful gender disparities as the remainder of the enterprise world. As she’s famous, only 8% of VC investing partners are women in LatAm versus 13% within the USA

As a part of her duties, Diaz-Ortiz will assist Magma function the Brava Initiative, a dedication from Magma and various accomplice funds to put money into at the very least 20 female-founded Latin American firms over the subsequent three years.

As Diaz-Ortiz has famous in TechCrunch, investing in feminine founders is sensible:

Many research have established that female-founded firms outperform their all-male counterparts. Boston Consulting Group experiences that for each greenback a feminine founder or co-founder raises, she generates 2.5X extra income than a male founder.1 First Spherical Capital’s analysis held that the female-founded firms it backed carried out 63% higher than all-male founding groups.2 The Ewing Marion Kauffman Basis’s confirmed that return on funding from women-led groups is 35% greater than their all-male counterparts.3 AllRaise, a nonprofit selling ladies in VC, discovered that “firms with ladies on their founding groups are prone to exit at the very least one 12 months quicker in comparison with the remainder of the market, and the variety of exits for firms with at the very least one feminine founder is rising at a quicker price year-over-year than exits for firms with solely male founders.”4 Jen Neundorfer, founding accomplice at Jane VC, succinctly explains her fund’s thesis of investing in feminine founders as, “investing in an overlooked asset class that is overperforming.” In spite of everything, it’s a “trillion-dollar alternative.”5

“We’re doing this as a result of feminine based startups have higher returns and to focus on the disparity in VC funding to ladies entrepreneurs,” Diaz-Ortiz wrote in an announcement.

Claire Diaz-Ortiz. Picture Credit score: Jose Diaz-Ortiz

Magma has already made its first 4 investments into women-led or co-led startups: Jefa, a neobank targeted on serving ladies in Central America; The Intern Group, which provides digital internships for lifelong studying throughout careers; Prometeo, a startup growing open banking protocols for Latin American monetary companies; and Flickplay, a developer of augmented actuality options for social networking.

Latin America already has a number of proof factors to again up the assertion that cash invested in feminine founders is cash effectively spent. One want solely take a look at the success of Nubank and its co-founder Cristina Junqueira to see that investing in women-led companies could make sense.

There’s nonetheless loads of room to enhance, however Latin America is already doing higher than the remainder of the world in terms of backing various founding groups. In 2019, investments into blended female-male founding groups represented 16% of {dollars} invested in Latin America, 9% within the USA and solely 8% in Europe. 

“The enterprise capital trade in Latin America is kind of younger, no more than twenty years. The primary wave of companies was began by companions able to elevating funds from a male dominated pool of capital,” mentioned Antonia Rojas of the brand new Brava Initiative from Magma, in an announcement. “The following technology of VCs within the area will come from companions able to accessing one of the best offers and including essentially the most worth to founders. On this new period, the place outcomes matter extra, ladies are enjoying a a lot greater function. (Conventional LPs will quickly notice this.)”

The Brava Initiative has additionally enlisted a bunch of mentors from all over the world to supply steerage to the Latin American founders that it’s going to again, together with Maren Bannon, the founder of January Ventures.

It can even have a mentor community and an SPV in order that individuals who wish to help ladies founders immediately can make investments alongside Magma.

“Once I was a feminine founder (who was in her 30s and a mom of two), I by no means walked right into a VC’s workplace and felt it was created for me. So as an alternative of becoming a member of a kind of funds as an investor, I made a decision to co-found my very own. I wished to construct January Ventures the way in which I want a VC fund regarded: open, inclusive, welcoming, accessible, clear,” Bannon mentioned in an announcement. “Having extra feminine buyers writing checks will assist get extra funding to feminine founders.”