Wells Fargo Looks to Support Women-Owned SMBs With $1.5M Grant

Wells Fargo has rolled out new resources to help women-owned small businesses, intending to help more women invest for the first time in venture capital, a press release said.

This includes a $1.5 million grant to How Women Lead, aimed at disrupting the unequal venture capital system for women founders.

The grant to How Women Lead will seed a $1 billion fund, which makes it the biggest women-founded venture fund in the U.S. for women founders or startups in the tech and health sectors led by women.

The report notes that there’s data supporting the need for more aid for businesswomen — only 5% of accredited women investors can access VC funds, and only 1.8% of VC investments are going towards sole women-led startups.

In addition, only 5% of general partners in VC firms are women.

“Supporting women and women in business has always been a huge priority at Wells Fargo, and this month we are underscoring our year-round commitment,” said Mary Mack, CEO of Wells Fargo consumer and small business banking. “If we come together on actionable steps to close the gender inequity gap, we can accelerate the trajectory of women entrepreneurs and their contributions to the economy.”

In addition, Julie Castro Abrams, founder and CEO of How Women Lead, said the current moment is unique because “we have a generation of women who have risen in the ranks as corporate leaders and have wealth to invest.

“Investing in women-founded companies is financially savvy, creates six times more jobs for women, and results in economic growth for us all,” she said. “Collectively we have the wealth to fund women founders and the expertise and influence to support those companies to success.”

Read more: Wells Fargo, Brand Exec Retooling Bank’s Image to Part Ways

PYMNTS reported Wells Fargo will also be replacing Barri Rafferty, the person in charge of rehabilitating the bank’s image after scandals in the last few years.

Rafferty held the role for the last two years and looked over communications and brand management.