Michaela Jeffery-Morrison, CEO and cofounder of Ascend Global Media, the company behind Women in Tech World Series.
Women-founded startups in the U.S. raised just 1.9%—around $4.5 billion—of all VC funds allocated in 2022. In the U.K., they received 6% of VC funding. Female entrepreneurs, in other words, face a very real funding barrier, which makes scaling or launching a business more difficult—to the extent that, for some women, it may not be a viable option.
I believe this is one more symptom of systemic sexism. Old, boring ideas about “blue and pink brains” still persist, despite really positive advances and growing knowledge and maturity across the board. This means that men may be seen as lower-risk investments compared to their female counterparts and, therefore, more deserving of money.
Over the years, I’ve worked with a lot of female entrepreneurs. And I’ve seen firsthand how arduous the journey to getting funding can be. My peers and colleagues have received countless rejections, and for some women, the process can put an end to the entrepreneurial journey before it’s taken off. But there are lots of reasons to be optimistic, and with some thought and determination, female entrepreneurs can get the investment they need and turn their business dreams into reality.
Polish Your Business Plan And Pitch
The first step is to whip your business plan and pitch it into shape. You’ll want to be able to sell your ideas with confidence and clarity if you have the opportunity—and sometimes, opportunities come when you least expect them. Define and refine, and then refine some more. Try to imagine what questions you might be asked and come up with answers. Simply put, investors want to know two things: Is there a viable market for your product or service, and is there interest from customers? This is a way of asking one question: Will it make money? Of course, there are lots more you should include, but these are some of the key concerns of every investor—and that means they need to be your key concerns as well.
Build A Strong Network
Developing a network is a key part of getting access to funding opportunities, and events are a great way to start doing this. There is now a wide range of events, conferences, and meetups, some of which are centered on tech or DEI or both, where you can find other entrepreneurs, meet potential investors and increase your knowledge of the funding landscape. Simply having a supportive community can make a big difference. Setting up and growing a business can be lonely. (Full disclosure: My company crafts events for women in tech.)
Mentorship is a part of this. Mentors can provide guidance, advice and a blueprint for getting and using investment if they have secured funding before. They can help you to develop a pitch and get a better understanding of the investor mindset.
Research Female-Focused Funding Organizations
Some incredible initiatives and organizations have emerged in recent years with the aim of closing the funding gap and supporting female-led businesses. There are female-focused crowdfunding platforms and VC funds that invest in companies founded by women, people of color and those identifying as LGBTQ. These represent a real opportunity for female entrepreneurs.
Get Yourself Out There
Not everybody is comfortable with self-promotion. But it’s an important part of getting funding. Try to keep up a strong online presence, either on social media or a website or both. Share your knowledge, connect with other entrepreneurs, and demonstrate your professionalism and credibility. By sharing your accomplishments, you might also bring investors to you—while supporting other women moving into your space. And if you have the opportunity to speak at events or contribute thought leadership, go for it. You might be nervous at first, but it’s an incredibly effective way of signaling your leadership skills and your success.
Keep Moving Forward
Anyone who has pitched and been turned down for investment knows how discouraging it can be. This is one reason why having a supportive network is valuable. But ultimately, you need to be the one to pick yourself up, dust yourself off and keep moving forward. There will be hurdles to overcome, and there will almost certainly be rejections of some form. But it gets easier, and you can develop the kind of resilience you need to endure the slings and arrows of fortune when your business is really up and running. What’s more, you can gather feedback and develop.
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