Google Looks To Break Up The Venture Capital Boys Club With New Fund That Exclusively Supports Asia-Pacific's Female AI Entrepreneurs

Even though a lot of progress has been made in the way of diversity in the startup space, there's still plenty of room for improvement. The overwhelming majority of venture capital funds go to caucasian male founders, often leaving people referring to venture capital as a “Boys Club.” Leave it to Google to take the next step in the quest for equality.

The search engine giant launched a financial support initiative aimed at endorsing startups established by women across the Asia-Pacific area, a region where females have traditionally encountered challenges in advancing in the business sector.

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What To Know About The Google For Startups Women Founders Fund

Google unveiled the Google for Startups Women Founders Fund, an initiative dedicated to boosting female-founded startups, with an initial offering of $100,000 in equity-free funding to six businesses in 2023. The fund will target enterprises in India, Japan and South Korea, with plans to extend its reach to other Asia-Pacific markets in the future.

Venture capital can be a lucrative industry, with many of the top-performing venture capital funds surpassing a 20% return annually. With billions flowing into the venture capital market each year, funds are finding new investment philosophies to gain an edge. Retail investors have also recently begun investing millions into startups through platforms like StartEngine and Wefunder.

Singapore-based Mike Kim, Asia-Pacific's head of Google for Startups, will manage the fund. According to Kim, the provision of funding is a crucial factor, but the fund's capacity to offer international exposure to founders is equally significant. This facilitates increased recognition from global venture capitalists, potentially enabling additional funding. As evidence, he cites the over 400 founders supported by Google for Startups' other funds, who successfully raised more than $400 million in supplementary venture funding.

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The Women Founders Fund is a component of the Google for Startups Founders Funds program, established in 2020 to bolster underrepresented founders and cultivate an equitable business landscape. Google maintains separate funds dedicated to Black and Latino founders across various regions.

The fund will initially concentrate on startups in the burgeoning field of artificial intelligence (AI). Kim underscores the imperative for minorities and women to contribute to AI's development and avoid being marginalized. The technology has exhibited instances of algorithmic bias against underrepresented demographics, and he advocates for equal representation in shaping AI's future.

In the past, Google for Startups has sponsored successful Asian AI startups led by women, such as Seoul-based AI For Pet. The company, founded by Euna Hur, has created a smartphone application using AI to detect eye and skin diseases in pets, earning it a spot on Forbes Asia's 100 to Watch list the previous year.

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