First Partner Jennifer Siebel Newsom participated in a discussion at the annual Catalyst event alongside Marcie Frost, CEO of CalPERS, and Cassandra Lichnock, CEO of CalSTRS. The conversation focused on how California’s public institutions can improve access to capital for women and diverse entrepreneurs.
California has become the fourth largest economy globally and a hub for investment-backed innovation. However, there remains a disparity in funding distribution. In 2023, women-founded companies received only $3.2 billion from venture capitalists (VCs), accounting for just 2.8% of U.S. VC activity. In contrast, all-male-founded companies secured $114 billion.
“California is the global center of the innovation economy because we embrace new ways of thinking and fresh ideas,” said First Partner Jennifer Siebel Newsom during the event. “But if we’re missing out on more than half of the population’s entrepreneurial breakthroughs, we’re leaving a lot on the table.”
The discussion highlighted several initiatives aimed at improving economic opportunities for all demographics:
– CalPERS has diversified its private equity focus to include mid-market, growth, and venture segments.
– SB 54 requires VC firms in California to disclose demographic data on funded founders.
– SB 826 increased women’s representation on public company boards in California to 30%.
– AB 2927 mandates personal finance courses for high school students.
Marcie Frost emphasized the need for inclusive investment practices: “Women are the innovators and entrepreneurs that are helping solve societal issues yet remain significantly underrepresented in getting the capital they need.”
Research supports that women-owned startups generate more revenue per dollar invested compared to their counterparts. Additionally, venture capital firms with more female partners see higher fund returns and more profitable exits.
