Diverse teams outperform by doing more with less capital and delivering greater results. In emerging markets, that’s not a nice-to-have — it’s a future-focused strategy with compounding returns
In 1999, when I first forayed into venture capital investing while working at the Inter-American Development Bank, I was often the only woman in the room. In a career now spanning over a quarter of a century, I’ve seen the startup market across the Global South, from São Paulo to Nairobi to Jakarta.
While the landscape has evolved over the years, with entrepreneurship seeing a surge in emerging markets, capital continues to concentrate around closed, familiar networks — mostly composed of men. Venture capital wasn’t built with inclusion at its core. It has historically relied on pattern recognition and tightly held networks, often reinforcing access for those from dominant geographies, educational pedigrees, and social backgrounds.
The numbers reflect this. Globally, women-only founding teams receive less than 3% of venture funding. In Latin America, that figure is closer to 1%. In India, it’s 1.5%. In Africa, around 7%. But it’s not just about gender.
Understanding The Big Capital Gap
Talent is everywhere, but access to finance is not; founders outside capital cities or traditional tech hubs find it hard to be seen — let alone get funded. Fewer than 12% of VC partners in emerging markets are women, and representation across race, ethnicity, and class remains limited.
In a now well-cited Harvard study, 70% of investors preferred male-led pitches — even when the content was identical. In pitch meetings, women and minority founders are more likely to be asked about risk and downside, while their peers are asked about vision and scale. These dynamics show up in how startups are evaluated, mentored, and funded.
In emerging markets, where venture ecosystems are still maturing, this tendency to fund the familiar can limit the discovery of bold, locally relevant innovation. If five firms write Series A checks and four look for the same founder profile, we risk missing the next generation of breakthrough companies.
Yet the data tells a compelling story. A 2018 BCG study found that women-led startups generate over twice the revenue per dollar invested, despite receiving less than half the capital. A 2020 IFC report found that gender-balanced investment teams deliver up to 20% higher gross IRRs. McKinsey has shown that companies in the top quartile for ethnic and racial diversity on executive teams are 36% more likely to outperform on profitability.
These are not marginal differences — they are strategic advantages.
The Diversity Dividend
Diverse teams — in startups, funds, and investment firms — tend to identify more opportunities, approach challenges from multiple angles, and create solutions that resonate with broader markets. At Capria, 43% of our team are women, and 50% of our senior leadership is female. But our lens is not limited to gender. Our team represents a range of nationalities, ethnicities, and academic backgrounds. In our portfolio, 41% of our partner funds have a woman partner or principal, and 40% of companies have women in senior leadership. Many of our portfolio founders hail from regions typically underserved by capital — bringing insights shaped by lived experience.
We don’t just track diversity — we integrate it into our process, by providing coaching on inclusive hiring and leadership. Platforms like EmprendedoraLAC and WeInvest, which I co-founded and support to connect underrepresented founders and investors in Latin America, are now being scaled to other Global South regions with the support of Capria partners committed to unlocking the diversity dividend.
Emerging markets are dynamic, complex, and filled with untapped potential. If we want to build resilient, future-facing portfolios, we need to invest accordingly — backing diverse talent, funding new perspectives, and scaling solutions that reflect the breadth of the markets they serve.
Susana Garcia-Robles, managing partner at Capria Ventures, has spent over a quarter of a century investing in emerging markets in the global south. She is popularly known as the Godmother of VC in Latin America. See her full bio here.
