5 Strategies for Female Entrepreneurs to Secure Funding.

According to Inc.’s Women Entrepreneurship Report, 62% of women entrepreneurs say they’ve experienced some form of gender bias during the funding process. Many of the women founders we have worked with have encountered sexism in one form or another during the fundraising process. Furthermore, those that hadn’t experienced it directly had heard of other women who had. If you are a female entrepreneur seeking funding for your business, our advice is that it is important to have a firm idea of how you will handle it if it arises during the process.

Kate Dwyer and Penelope Gazin, the brains behind Witchsy, an online marketplace for art, embarked on a journey to secure venture capital funding in Silicon Valley back in 2016. However, their path was anything but smooth. Despite their best efforts, they faced a daunting challenge – getting meetings with Venture Capitalists (VCs) proved to be a Herculean task, and even when they did, they often found themselves not being taken seriously, simply because they were women.

In a stroke of ingenious defiance, Kate and Penelope devised a creative solution – they introduced a third fictional co-founder, Keith Mann, to their team. Using Keith's name on emails to developers and potential investors led to quicker responses and more meetings than they had ever received as women co-founders. This anecdote, though from 2016, remains as pertinent today as ever.

Fast forward to today, Witchsy is not just thriving but also turning a profit, selling a quirky mix of art, pins, shirts, patches, and other eclectic items crafted by talented artists. The journey of Kate and Penelope serves as both a cautionary tale and a beacon of hope for women entrepreneurs. They faced unique barriers as women in business, yet they overcame these obstacles to build and run a successful venture.

But let's not sugarcoat it – securing funding as a female founder comes with its own set of challenges, ones that are both ongoing and well-documented. In the UK, for instance, research by the British Venture Capital Association revealed a stark gender imbalance in VC funding, with all-women founder teams receiving less than 1p for every £1 invested in startups. Additionally, the Rose Review of Female Entrepreneurship found that access to funding remains a significant barrier for women looking to start a business, with around one-third citing it as their biggest challenge.

And the UK isn't alone in facing such disparities. Across Europe, women founders received a mere 1% of all VC investment, according to The State of European Tech 2021 study. Globally, the picture isn't any rosier, with just 2% of total VC funding going to women-led startups in 2020, and even fewer going to women of ethnic minorities.

Off the back of these grim statistics, we want to share the top advice for women overcoming funding issues:

1. Be strategic and intuitive in selecting your investors: Choosing the right investors is crucial, and we can't stress enough the importance of both research and intuition in this process. Look for investors who align with your values, and trust your gut when assessing whether a potential partnership is the right fit for you and your business. It may sound risky, but when choosing investors, be willing to say no sometimes. It can open up new opportunities. Be prepared to tell them they’re not the right partner, they didn’t treat you right, they don’t share the vision you have for the company.
   

2. Blend the best traits typically associated with men and women: As an agency working closely with our clients, we delved into conversations with women founders to explore the dynamics of blending traits typically associated with both men and women. What emerged was a recognition of the unique strengths each gender brings to the entrepreneurial table, and the potential for mutual enrichment by embracing these diverse qualities. From these discussions, we gleaned insights into how women entrepreneurs perceive their own traits in comparison to their male counterparts. Many highlighted qualities such as feminine intuition, passion, and empathy as key strengths inherent in their approach to business. They emphasised the importance of authentically expressing these traits, recognising them as valuable assets rather than weaknesses. Interestingly, some women with male co-founders noted the natural inclination to adopt a more compassionate role in investor meetings, while their male counterparts focused on technical aspects. However, it's essential to note that this dynamic varied based on individual backgrounds and responsibilities within the company. For instance, women with technical or financial expertise were often recognised and questioned in their areas of strength, such as a CFO addressing financial queries from investors. Throughout these discussions, a common thread emerged encouraging women to assert themselves confidently and directly, overcoming any hesitations or societal pressures to conform to outdated stereotypes. While some acknowledged the need to adapt their communication styles for effectiveness, others emphasized the importance of remaining true to oneself. In essence, our findings underscored the significance of authenticity in interpersonal connections and the empowerment that comes from embracing one's unique strengths, regardless of societal expectations. As we move forward, our aim is to foster an environment where women entrepreneurs can thrive by leveraging their diverse qualities and staying true to their authentic selves.
   

3. Master the art of passionate and authentic storytelling: Craft a compelling narrative that showcases your passion and vision for your business. Be proud of your story and stay true to yourself, even as you hone your pitch and presentation skills.
   

4. Support other women, including through networks: Many of our clients and colleagues have commented on how lonely the entrepreneurial journey was and a recurring theme of our conversations with women founders was the importance of mutual support and, in many cases, the subsequent friendships that form between women in the startup ecosystem. Many interviewees said they were members of networks of women entrepreneurs, both formal and informal, who had come together to share experiences and provide mutual support. The common view was that these networks can be a valuable source of guidance and advice, and a help to women as they grow their businesses. “We’ve created a network of female founders at The Female Network where we share experiences and offer advice. We don’t see each other as competition but support each other. This is the conclusion we’ve come to within our network of women, and we’re supporting each other to be more like that.” A further positive force for change – one highlighted by several interviewees – is experienced women entrepreneurs mentoring the up-and-coming generation. “Remember how nice it felt when someone opened a door for you.” Build a network of like-minded individuals who can offer guidance, share experiences, and provide mutual support along your entrepreneurial journey.
   

5. Retain Your integrity and stay true to yourself: Stay resilient in the face of adversity and remain true to your values and beliefs. Don't let stereotypes or biases dictate your path – be prepared to stand up for yourself and your vision, no matter what challenges may arise. Coining a memorable phrase, the hurdles facing women startup entrepreneurs often seem like a “female tax” – reflecting the need for women to work harder and be more resilient than their male counterparts. Whilst this is invariably true, remember to try and stay true to yourself throughout the journey, whatever might happen along the way. This means having clear red lines for what you will and won’t tolerate, knowing what your values are, and being ready to deal with unacceptable behaviour when it arises. You will get lots of different opinions on what’s right or wrong. But as an entrepreneur you have to take feedback where you feel it is right, while ultimately staying true to yourself and not acting like someone you’re not.
   

6. Confidence is key: The road to securing funding as a female entrepreneur may be fraught with obstacles, but it is not insurmountable. Armed with determination, resilience, and the insights gleaned from our empowerment hub and other sources, women founders can navigate the funding landscape with confidence and conviction. And this confidence is key. As women, we need to strengthen our internal belief system and be confident. From an early age, women are told we can achieve less. If we want others to believe in us, we need to start with ourselves. So be yourself and believe in yourself. But while change may be relatively gradual, it can and will happen. As a recent Financial Times article showed, in 2022, women entrepreneurs launched a record number of businesses in the UK. That’s the journey we’re on and every successful woman founder moves us forward another step.
   

As we celebrate the successes of women entrepreneurs and the progress being made towards gender equality in entrepreneurship, let us also acknowledge the work that still lies ahead. By supporting and empowering each other, we can pave the way for a future where women-led businesses thrive and flourish.