As the global finance sector reckons with calls for greater equity, transparency, and sustainability, women are quietly but powerfully transforming the world of impact investing. At the forefront of this shift is Setareh Heshmat, ESG investment director and sustainability thought leader based in Singapore.
In this feature, Setareh explores how female investors, founders, and fund managers are reshaping not just who gets funded — but how capital behaves.
The Gender Investment Gap — and Why It Matters
“For decades, women were largely excluded from major investment decisions,” Heshmat says. “Even today, less than 3% of global venture capital goes to women-led startups. That’s not just unjust — it’s bad economics.”
She points to multiple studies showing that female-led companies tend to outperform their peers on capital efficiency, social impact, and team diversity. Yet, systemic bias continues to restrict access to capital.
“Impact investing gives us a unique opportunity to rewrite the playbook,” she adds.
Women as Catalysts for Sustainable Capital
Setareh highlights a growing body of research that shows female investors are more likely to prioritize environmental and social impact in their portfolios. In her own experience managing ESG investments, women founders are also more likely to embed purpose into business models — not treat it as an afterthought.
“When we invest in a woman-led climate startup, we often find that ESG alignment is baked into their DNA — from supply chains to hiring practices to community engagement.”
In her portfolio, 40% of current investments are women-led — a figure significantly above the industry average.
Rethinking Risk Through a Gender Lens
Heshmat also challenges traditional risk frameworks, which she argues are biased against women and underrepresented founders.
“The term ‘track record’ often disadvantages founders who’ve been shut out of elite institutions or legacy networks. But if you redefine risk to include resilience, lived experience, and stakeholder engagement — suddenly, women-led ventures emerge as extremely investable.”
She’s advocated for changes in due diligence processes, urging VCs and LPs to adopt gender-sensitive evaluation tools, especially when investing in emerging markets.
Mentorship and Ecosystem Building
Beyond capital deployment, Setareh is deeply involved in building a more inclusive investment ecosystem. She mentors women-led startups across ASEAN and is a founding advisor to a regional initiative called Women Impact Asia, which connects female investors, founders, and policymakers.
“Representation isn’t enough,” she says. “We need structural support — accelerators, co-investment networks, public-private partnerships that actively shift power dynamics.”
In 2024, she helped launch a microfund in collaboration with women-led NGOs in Indonesia and Vietnam, offering seed funding to early-stage ventures in climate resilience, ethical fashion, and digital literacy.
A Personal Perspective
For Heshmat, this mission is personal. “Early in my career, I was often the only woman in the room. I had to fight twice as hard to prove my competence — and still got passed over for deals I sourced.”
Rather than leave the system, she decided to change it from within. Now, as a decision-maker herself, she ensures that her investment committee applies a diversity and inclusion lens at every stage.
“I can’t fix all of finance,” she says with a smile. “But I can change how we do things — and inspire others to do the same.”
What’s Next: Building a New Archetype
Setareh believes the future of impact investing will be female-led — but not in the traditional mold.
“We’re not trying to replicate the old models with different faces. We’re building a new archetype of investor — one that balances logic and empathy, ambition and community, performance and purpose.”
She’s currently working on a book that weaves data, stories, and field experiences from across Southeast Asia, aiming to offer a practical guide for women entering the impact finance space.
Key Takeaways from Setareh Heshmat:
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Representation without redistribution is cosmetic. True change needs capital, control, and credit shifting toward women.
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Impact investing isn’t soft — it’s strategic. Women-led businesses are outperformers when given equitable support.
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Mentorship is infrastructure. Networks, role models, and visibility change outcomes as much as capital does.
Final Thought:
“We don’t just want a seat at the table,” Heshmat concludes. “We want to redesign the table — sustainably, equitably, and boldly.”
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