Female startup founders received just 2.2% of the VC funding in the U.S. in 2018, which is staggeringly low considering how much attention has been brought to the issue of diversity in tech and the lack of capital to women entrepreneurs in recent years. But Northwestern Mutual is making a concerted effort to ensure female founders are not overlooked in its latest fund.
Northwestern Mutual announced Thursday that it will dedicate $20 million to invest in startups founded by women. Northwestern Mutual is currently investing out of a $150 million fund, which it announced back in May.
Since launching its venture fund in 2017, Northwestern Mutual has invested more than $50 million in 18 startups. The company backs startups that are involved around consumers' changing financial preferences, digital health, analytics and other technologies.
Northwestern Mutual's check sizes typically range from $500,000 to $5 million, and it invests mostly in Series A or B rounds.
"Women play an essential role in financial decision-making for themselves and their families and by investing in women-owned startups, we can create more opportunities for women through a dedication of funds, but also gain strategic insights to better serve our clients," Souheil Badran, Northwestern Mutual's chief operating officer and executive vice president, said in a statement.
Northwestern Mutual also operates Cream City Labs, a 17,000-square-foot innovation center to connect with startups and provide workspace for local entrepreneurs. The company is also part of the $100 million Wisconsin Valley Venture Fund, which is also led by Advocate Aurora Health, Foxconn Technology Group and Johnson Controls.
