In the dynamic world of startups, female founders are making significant strides. However, navigating the landscape of funding and investor relations can still present unique challenges. According to a recent report, women-founded companies received only 2% of venture capital, less if you are a minority. This blog post aims to provide valuable insights and actionable advice for women-led startups, ensuring female entrepreneurs are well-equipped to secure the funding they need to thrive.
-
Understanding the Landscape for Women-Led Startups
Women-led startups are on the rise, with more female entrepreneurs stepping into the startup arena than ever before. Yet, the funding gap remains a critical issue. Female founders must understand this landscape as they prepare to pitch to investors.
According to the recently released DocSend Funding Divide Report, in 2023, female teams took 65-75% longer to fundraise, raised the least amounts of capital, and asked for less money. In our experience, female founders also set more conservative revenue goals and value their ventures less than their male counterparts.
At the same time, investors spent 66% MORE time scrutinizing the team section and 41% more time scrutinizing the business model sections of all-female, versus all-male, teams. Further, investors spent 14% LESS time on fundraising goals of all-female, versus all-male, teams.
-
Essential Female Entrepreneurship Tips for Success
To successfully navigate the startup world, female entrepreneurs should focus on several key areas:
Networking and Mentorship:
A recent SCORE’s report showed that entrepreneurs who seek mentorship significantly increase their chances of success regardless of gender. That is not a surprise, and thus it is so important for any startup to have a strong board of advisors. The board of advisors enables you not only to get access to missing expertise and attain much needed outside perspective, but also adds credibility to your startup, provides accountability to your actions, and gives you access to a much wider network.
The bad news is that even though we do know the benefits of networking, we are not using it fully. A study from McKinsey and LeanIn.org recently found that women have smaller networks than men, spend less face time with senior executives, and are more likely to have a network made up exclusively of other women. So get out there, seek out mentors, advisors, join founder communities and get the support you need to succeed.
Pitching with Confidence:
Dana Kanze, London Business School Professor, noted in her TED talk, many female founders often get asked negative questions when they pitch. Be aware of that, practice, and learn how to turn a negative question into a positive one.
Consider joining pitch workshops or working with a coach to refine your presentation skills. Be ready to do what it takes to make your pitch compelling and memorable.
Develop a Growth Mindset:
Quoting Carol Dweck’s, “Mindset”, “Prejudice is a deeply ingrained societal problem. A growth mindset helps people to see prejudice for what it is – someone else’s point of view of them – and to confront it with their confidence and abilities intact. Many females have a problem not only with stereotypes, but with other people’s opinions of them in general. They trust them too much. The fixed mindset, plus stereotyping, plus women’s trust in other people’s assessments of them: all of these contribute to the gender gap in math and science.”, and the gender funding gap in our opinion. In the growth mindset, “their heads are not filled with limiting thoughts, a fragile sense of belonging, and a belief that other people can define them.” That is how you become unstoppable and break through all the glass ceilings.
Learn specific strategies about each of the points above at our upcoming event, Breaking Barriers: Female Founders and The Emotional Side of Venture Investing, so that you can learn what steps you can take today to navigate the current venture landscape and accelerate your fundraising process.
-
Unlocking Funding for Women Entrepreneurs
There are numerous funding opportunities specifically aimed at supporting women entrepreneurs. Research grants, angel investors, and venture capital firms that focus on women-led startups. Additionally, consider joining networks or platforms dedicated to female founders, which can provide access to funding and resources. Organizations like
The Startup Station, Female Founders Fund, and Golden Seeds are excellent places to start. To explore more resources on how to get access to capital if you are a female founder, read our Blog “”.
-
Female Startup Success Stories to Inspire
Learning from the success stories of other women entrepreneurs can be incredibly motivating. Highlighting female startup success stories not only provides inspiration but also practical insights into what works. For instance, Whitney Wolfe Herd, the founder of Bumble, successfully navigated the funding landscape and took her company public. Similarly, Katrina Lake, founder of Stitch Fix, grew her company from a startup to a publicly traded entity. These stories serve as powerful examples of what is possible. Our media, Women’s eNews, publishes many inspiring women and girls; stories from around the world.
-
Practical Startup Funding Advice for Women
Securing funding is often one of the biggest hurdles for female founders. Here are some practical tips:
Prepare Thoroughly: Ensure your business plan is detailed and data-driven. Do research when you prepare your pitch deck and display relevant info on each slide. Investors want to see evidence of potential returns. Include market research and TAM calculations, thought-through financial projections, and a clear value proposition. Be ready to demonstrate that you have a team ready to execute who works well together. No one can build a company alone.
Seek Mentorship: Find a mentor who has experience in startup funding advice for women. Their guidance can be invaluable. Platforms like SCORE and MentorHer offer mentorship programs tailored for female entrepreneurs. Our partner, The Fourth Effect, offers a platform for building an advisory board where women founders can get access to 2000+ senior female executives.
Leverage Your Network: Use your connections to get introductions to potential investors. Personal recommendations can significantly increase your chances of securing funding. Attend industry events and join online communities to expand your network.
-
Final Thoughts for Female Founders
The journey of a female founder is filled with unique challenges and opportunities. By understanding the landscape, leveraging available resources, and learning from the successes of others, women entrepreneurs can confidently navigate the path to securing funding and achieving business growth.
-
Next Steps?
Join our community of female founders to access exclusive resources, mentorship opportunities, and funding advice. Sign up for our newsletter to stay updated on the latest trends and tips in the startup finance industry. Don’t miss out on the latest trends and tips in the startup finance industry—join our community today!
-
About Author
Victoria Yampolsky is a serial entrepreneur, strategic CFO advisor for numerous early-stage start-ups and expert in financial modeling and valuation. She’s a passionate advocate for female founders and fair access to capital for all.
As the President and Founder of The Startup Station, a strategic CFO advisory firm and financial education platform for startups and small businesses, she has collaborated with over 150 founders across 15 industries, assisting them in raising more than $50M in venture capital funding. Hundreds of entrepreneurs worldwide took The Startup Station’s courses on accounting, financial modeling, valuation and startup finance.
Victoria founded PowerUp Globally, a non-profit program that helps seed-level female-led ventures grow and secure their next round of funding through sales and financial training. The program aims to close the gender funding gap. PowerUp also offers the Female Founder Mindset Gym, a resilience-building program for early-stage female founders.
Before venturing into entrepreneurship, Victoria spent nearly a decade on Wall Street in Deutsche Bank Research and IT Consulting at CapGemini.
Victoria holds a Bachelor’s Degree, Cum Laude, in Computer Science, with a minor in Mathematics from Cornell University, and an MBA, with honors, from Columbia Business School.
Still have questions?
We are happy to talk to you. Book a FREE 30-min consultation now by pressing the button below and, as a bonus, we will send you a COMPLIMENTARY financial health checklist.