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Why Isn't Beauty Investing More Inclusive?

Access to capital, especially for female founders of color, remains a challenge.

Collage by Jenna Greene; Images by Adobe

Much work remains for the beauty investment landscape to be more inclusive.

Despite progress in recent years toward gender diversification, venture capital firms’ highest ranks remain largely homogenous. A 2018 report from the National Venture Capital Association and Deloitte found that out of a pool of 200 U.S. firms, 14 percent of investment partners were women. The study also found that the majority — 80 percent — of investment partners were white, with 15 percent identifying as Asian or Pacific Islander, 3 percent as Black or African American and 3 percent as Hispanic or Latino.

Women are making great strides in securing funds for their businesses. The number of women-led companies valued at $1 billion or more reached a record high last year — despite a $189 billion gender gap in funding, according to a Crunchbase report.

But intersectionality is key.

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