DX Sophisticated Investor Club
The FCA's updated criteria for being classified as a high-net-worth individual kicks in - and both highlights the issue of the gender-pay gap and its effect on the funding of underestimated founders, but in also exacerbates the issue. This is sadly another kick in the teeth for diversity in investment.
The threshold is set to increase from HNWI having to earn £100k per year (today) to £170k per year starting 31 January. See the image that highlights the disproportionate impact women.
The 2021 Census noting that women make up 51% of the UK population, yet UKBAA data showing they account for just 14% of angel investors, this FCA rule change could further widen the gender gap in investment. Research shows that female investors are twice as likely to invest in startups with a woman on the founding team and three times more likely to invest in women CEOs. This is not just about fairness; it's about performance too. Companies with female founders generate 10% more in cumulative revenue over a five-year period, according to BCG. Yet, they are historically underfunded, receiving only 2.3% of VC funding despite making up 51% of the population.
The impact of the FCA's threshold change is clear: in England alone, the number of qualifying women under the new criteria will drop by an alarming 69-100% across regions. This is not just a step back for women but for the entire startup ecosystem that thrives on diverse perspectives and inclusive investment practices.
How We Empower Access To Angel Investing
We looked at the new rules, which brought in changes for qualifying as a HNWI and self-certifying as a sophisticated investor. We want to help any angel investor who, because of the new rules, will not be able to angel invest as a HNWI. How will we do this? Simple - join our private network, then progress to our syndicate.
How does it work?
Step 1️⃣: Subscribe to the DX Sophisticated Investor Club
Step 2️⃣: The first 6 months of membership - go through self-paced angel investor training - with regular online group sessions. (plus in-person events).
Step 3️⃣: On the 6 month anniversary - graduate to the Diversity X Angel Syndicate and get access to our deal flow.
Step 4️⃣: Join other angel groups - and start calling yourself a self-certified sophisticated investors when you apply to crowdfunding platforms of other angel groups.
Step 5️⃣: Make angel ticket investments
What's the next steps? Sign up below
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