Why High-Worth Women Must Invest in Women-Owned Businesses

We know the numbers. The ever-present funding gap.

Although the number of women-owned businesses has been increasing, these entrepreneurs have consistently received less than 3% of venture capital funding.

However, we are also seeing another shift, as more women achieve positions of economic power, a growing number of high-net-worth women are turning to investing, not just as a tool for personal wealth building, but as a lever for lasting change.

It is estimated that American women will inherit $30 trillion in wealth over the next 10 years, a phenomenon experts are calling the Great Wealth Transfer, based on a Bank of America Institute report published last year.

Here lies the opportunity – if more women have the financial resources to invest in small businesses, is there a way that women-owned companies can share in that wealth?

According to Business Insider, nearly 47% of angel investors were women in 2023, up from approximately 34% in 2021—a sharp rise driven by increased funding for women and growing financial confidence.

Here are five reasons why women who have the means should consider investing in women-owned businesses.

• Close the Funding Gap (as mentioned earlier). Women entrepreneurs receive less than 2% of venture capital funding. For women of color, that number is even lower. This disparity doesn't reflect a lack of talent—it demonstrates a lack of access. When high-worth women invest in women-owned businesses, they help correct this imbalance and shift capital toward ideas and innovation that would otherwise go underfunded or overlooked.

• Create a Multiplier Effect. Studies show that when women-led businesses succeed, they tend to hire more women, support their communities, and reinvest their earnings in education, health, and family well-being. A dollar invested in a woman has ripple effects that go far beyond a single bottom line. High-worth women have the means to amplify those ripples—and the returns that come with them. For example, Heather Fritzsche, Co-Founder and CEO of Spearhead Global, created the Capital and Catalyst grant, along with the Enthuse Foundation, specifically to support women-owned food and beverage businesses.

• Redefine What Power Looks Like. Historically, the world of investing has been male-dominated, from the boardrooms to the backers. By actively participating in angel investment, venture capital, and private equity—mainly when directed toward women founders—high-worth women are reshaping what influence and leadership look like in the investment space.

• Align Capital with Values. Many high-net-worth women are increasingly value-driven. They care about impact as much as they do about returns. Investing in women-led companies offers a straightforward way to align portfolios with principles, supporting innovation, equity, sustainability, and community growth simultaneously. Gender-diverse leadership is associated with stronger business performance, offering a win-win for values and valuation.

• Build an Inclusive Legacy. Legacy is more than inheritance—it's about shaping the future. By choosing to invest in women founders, high-worth women build a more inclusive entrepreneurial ecosystem for the next generation. Whether through angel investing, venture funds, or direct support, these investments create ladders rather than pulling them up.

Bottom Line: Investing in women doesn't always require a million-dollar check. It can begin by joining an angel network, contributing to a women-focused venture fund, mentoring a startup founder, or supporting accelerators and grant programs that focus on women-led ventures. The key is intentionality. Check out our board member Katie Dunn's blog post on Behind the Checkbook: Inside an Angel Investor's Brain for additional resources and guidance for those just embarking on the angel investing journey.