New York - UBS Group’s American wealth management unit has helped raise $110m for a US venture capital fund that will invest in companies in the health, education and environmental areas that are led by or co-managed by women.
The fund is managed by Rethink Impact, a venture capital firm that invests in companies with a technological bent. Jenny Abramson, Rethink founder and managing partner, said women-led companies get just 3% of venture funding, even though a study by First Round Capital showed that companies with a female founder performed 63% better than those founded by men.
"We see this as a market opportunity," Abramson said. The fund aims for returns in line with those of other venture capital funds, she said. US venture capital funds returned about 15% over the past five years, according to data compiled by Cambridge Associates. UBS clients invested more than half the money for the fund, while Rethink Impact raised the rest.