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After I began fundraising in 2017, ladies have been getting simply over 2% of enterprise capital. Six years later, ladies proceed to get simply 2% of enterprise capital. For myself and lots of different ladies tech founders, the funding hole is private. We have learn sufficient headlines and gotten sufficient rejections to know that the methods governing grants, debt, and fairness aren’t arrange for us to succeed. So, what are we going to do about it?
With beneficiant assist from Tiger International Affect Ventures, my firm got down to analysis the very best, most possible actions that resolve (or at the least shrink) the funding gaps for ladies tech founders. This effort concerned surveying almost 20,000 ladies entrepreneurs and conducting 19 in-depth professional interviews with founders and area consultants.
The ensuing report, titled “Standing within the Gaps: A Roadmap to Redesign the Capital Continuum for Ladies Tech Founders,” presents an motion plan for entrepreneurs, establishments and traders to work collectively and unlock the total potential of girls tech founders.
Based mostly on the report, listed here are three entrepreneur-focused steps to assist ladies safe the funding they should develop their startups. It is our motion plan to make sure the information six years from at present appears completely different.
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1. End up a co-founder
Take it from somebody who’s been a solo founder herself: Your journey will at all times be smoother (and extra fulfilling) with a trusty copilot. The analysis agrees with me on this one, discovering that co-founders supply further expertise, assist and even improved fundraising prospects. One evaluation discovered that 85% of enterprise and angel funding {dollars} go to firms with two or extra founders.
It is not at all times simple discovering a co-founder you may belief, respect, and be taught from, nevertheless it’s one thing I consider each entrepreneur ought to search out. Listed here are a number of strategies recognized in our report:
- Be a part of native coworking areas and networking teams: Meet the movers and shakers in your native startup neighborhood, share lunch with somebody new and unfold the phrase about what you are constructing. Even if you happen to do not meet your co-founder, you will make helpful connections that would repay.
- Use free co-founder matching platforms: Our report recommends a number of choices, together with YC Co-Founder Matching, CoFounders Lab, DigitalWell Ventures and StartHawk
- Attend conferences and business occasions: These occasions are nice locations to satisfy people with technical backgrounds or deep expertise in your area.
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2. Make the most of each monetary wellness and fundraising training useful resource you may
As soon as the novelty of beginning your online business wears off, you shortly be taught that there’s fairly a studying curve on the subject of working your online business. To not point out the immense value that it takes to maintain it afloat, particularly in these early proof-of-concept days. Systemic limitations make it tougher for girls and different underrepresented teams to entry the capital we’d like, too, so it is important to know your stuff to impress bankers and potential traders.
The 1st step is ensuring your online business financials are in fine condition. You do not want a enterprise diploma, however there are some classes each entrepreneur must be taught to keep away from costly errors. Listed here are some good locations to be taught finest practices:
For these additional down the highway and seeking to fundraise, our report affords one other batch of sources. The next instruments might help you grasp frequent fundraising matters and put together for conversations with VCs and angels:
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3. Method alternatives by way of the lens of cost-benefit evaluation
If ladies tech founders take in nothing else from this report, I hope they hear to 1 easy but highly effective reminder: It is OK to do much less.
Entrepreneurs have excessive calls for on their time as we’re overrun with alternatives and selections to make. On the subject of funding, there’s at all times one other grant program to use for, one other investor to electronic mail, or a brand new credit score alternative to dimension up.
View each alternative by way of the lens of cost-benefit evaluation by asking your self whether or not the time, vitality, and willpower align with the potential final result for the enterprise. Be trustworthy! If sure, transfer ahead. But when not, be sort to your self and transfer on.
Funding may be the lifeblood of a enterprise, however you are the beating coronary heart conserving the dream alive. Handle your self, and the remainder has a manner of caring for itself.