Although men tend to take the lion’s share of publicity in terms of business success, the fact of the matter is that women have become an integral part of the modern market. We are now seeing more female founders, CEOs and CFOs than ever before. Just as any investment portfolio should be as diversified as possible, it is also a good idea to take a look at why so-called “girly” companies could be excellent ideas from a financial point of view. Let’s take a look at some examples of firms which could prove to be lucrative assets now and well into the future.
Small Start-Ups with Big Ideas
Investing in start-up firms has always been a popular option for those who are keen on potential growth from a medium-term point of view (one obvious example here could be Facebook in 2004). One great aspect of female-led enterprises which offer innovative products or services is that they tend to be “off of the radar” in comparison to their male-founded counterparts. A great example can be seen in the start-up Mattersmark. This innovative platform collates and centralises business data from sites such as Twitter, CrunchBase, AngelList and even SEC filings (1). Such a tool can be quite useful for those who are looking to keep ahead of their competitors. As of the time that this article was written, Mattersmark has already raised more than $9.4 million dollars through private investments. So, it is clear to see that there is some very real clout to female-based start-up firms.
One particular sector worth noting is the technology industry. During the past ten years, we have seen a growing number of young women enter into university to study within this field and obtain a degree. Thus, it only stands to reason that females will represent a higher statistical proportion within the tech sector than we are currently witnessing. We then need to combine this observation with the fact that technology is continuing to evolve at a breakneck pace. Whether referring to the mobile revolution, remote computing or user-friendly interfacing, there is no doubt that female-led enterprises will perform quite well.
The Needs of the Consumer
Another area of focus revolves around female companies which cater to the needs of the consumer. Of course, this sector has been growing massively regardless of gender. There are still some firms to keep an eye on in the future. Three examples here include:
- My Marketing Solutions (a digital and social media marketing platform).
- Thompson Gray (An IT services provides to United States governmental institutions).
- Create Group NYC (a large pharmaceutical firm).
Of particular interest is a relatively new start-up known as Drawbridge. This company provides integration services between common devices such as tablets, smartphones, televisions and computers. However, their main benefit is the ability to offer insight into consumer behaviours over time; key to developing correct marketing strategies. Revenue generated in 2014 alone equated to an impressive $32.9 million dollars. This represented a growth rate of 23,484 per cent during the past three years (2).
Looking Towards the Future
While there is no doubt that the list of specific female-based start-up firms can carry on for pages, investors need to be asking themselves which industries are predicted to experience the greatest increases in growth. Then, a tidy “nest egg” can be created to enjoy sustainable income well into the future.
We have already highlighted technology and marketing sectors in terms of their room for growth. However, females are also entering into other industries such as biotechnology, medicine, IT and digital marketing. It is no coincidence that these very same areas are expected to perform well in the years to come.
There is nothing “girly” about such companies in terms of growth, market clout and investment opportunities. Still, it can be tough to keep up to date with all of the latest news when information is required the most. Both novices and professional traders alike employ the proprietary tools found within CMC Markets on a daily basis. The expression “knowledge is power” should always be embraced within the world of investing.