Women are the driving force behind consumer spending, influencing a massive 85% of it, with an annual expenditure of $20 trillion. Female-founded companies not only keep up with but often surpass their male counterparts in terms of revenue growth and profitability.
However, the harsh reality is that the funding landscape starkly contrasts this influence, with only 2.8% of venture capital funds allocated to women-only teams in 2023. Even worse, black and ethnic minority-led female businesses received less than 2%.
Four years ago, I successfully raised $2.5 million in funding for my community startup Vibely (which I later sold to the $6.5B revenue-generating Kajabi). Through this fundraising journey, I’ve had conversations with many female entrepreneurs about the challenges they face in raising capital. The general consensus is that raising funds is an uphill battle, with gender and racial prejudices still hindering great ideas from securing funding.
What more women need to know is that achieving true gender parity involves not only navigating the fundraising landscape but also fundamentally reshaping it through inclusivity and empowerment.
The key to maintaining motivation for the long term
Perseverance is a hidden form of genius. Entrepreneurs who push past the three-year mark are 22% more likely to succeed, according to the National Bureau of Economic Research.
A common misconception is that entrepreneurs are rugged individualists. Harvard Business Review’s analysis uncovers a surprising insight:
“65% of entrepreneurs report high levels of stress, with a third facing burnout risk. This stark figure emphasizes the hidden cost of the entrepreneurial journey: mental health. Beyond the hustle, it’s a battle fought in solitude, where the founder’s resilience is tested against relentless uncertainty and unmatched demands.”
The entrepreneurial narrative often romanticizes the lone warrior, but I firmly believe that long-term grit stems from being part of a supportive community.
My family’s remarkable journey from extreme poverty to the middle class, with significant support from the Taiwanese American Association, showcases the transformative power of community.
This lesson is crucial for female entrepreneurs amidst the isolation that often characterizes the entrepreneurial path. Establishing a nurturing community is absolutely essential for enduring success and opportunities.
Here are 3 ways to enhance your resilience:
- Actively build connections: I didn’t have the advantage of a well-connected family, so I had to create my network through cold outreach via email and DMs. Once you find your tribe, your determination will grow stronger through shared challenges, goals, and values.
- Find success through proximity: Surround yourself with like-minded individuals in person. I experienced a significant fundraising advantage by living in Silicon Valley, where all founders and investors converge. This led to numerous opportunities such as introductions to investors, acquiring new customers, and more.
- Initiate your community: Taking the lead to start a collective is highly rewarding with disproportionate opportunities. Build a community of fellow entrepreneurs who can provide emotional support, share experiences, and offer encouragement during tough times.
Combat investor funding bias with these effective strategies
Many investors are unaware of the biases influencing their investment decisions, as they instinctively look for founders who resemble billionaire entrepreneurs like Elon Musk, Adam Newman, Travis Kalanick, and Mark Zuckerberg.
However, the entrepreneurship portrayed in the media doesn’t align with entrepreneurship in reality or in the data. Boston Consulting Group revealed that women-led startups often outperform their male-led counterparts, “generating 10% more cumulative revenue over a five-year period.” Women not only receive fewer investments but also receive, on average, half the amount received by male founders.
Here are 4 actionable ways to strengthen your pitch:
- Focus on your traction: Highlight your growth numbers, profit margins, revenue, customer acquisition costs, lifetime value—any business metrics that showcase your unique advantage. Revisit these numbers whenever relevant.
- Showcase all social proof: Demonstrating your credibility is the best way to pique interest. Begin and end with your customers, investors, achievements, and testimonials. This approach will make investors eager to join your journey.
- Envision a bold contrarian future: Predict the future confidently. Explain why your business will be at the forefront of that future. Avoid vague predictions with “if’s” and “maybe’s”. Investors want to see your confidence in seeing the world differently and betting on your unique vision.
- Anticipate counterarguments: BCG found that “More women report being asked during their presentation to establish that they understand basic technical knowledge.” Prepare for potential skepticism with data-driven responses.
Leverage your distinctive feminine strengths
In discussions on leadership, qualities traditionally associated with femininity—such as empathy, intuition, collaboration—are not just advantageous but essential for transformative leadership.
My experience has shown me the dual nature of empathy in business decision-making, underscoring the need to balance empathetic leadership with strategic growth objectives.
In 2024, as we embrace the potential of the female economy, it’s vital to acknowledge and harness these feminine strengths in fundraising and beyond. This is not to circumvent gender biases but to celebrate diversity and inclusivity in entrepreneurship. Achieving gender parity in entrepreneurship involves not just navigating existing barriers but dismantling them through inclusive practices and embracing diversity.
As we champion the cause of ‘Inspiring Inclusivity’ this International Women’s Day, let’s commit to creating spaces where women’s voices are not merely heard but play a critical role in shaping the future of business.
This journey is about more than individual success; it’s about reshaping the entrepreneurial landscape to be truly inclusive, empowering the next generation of female founders to lead with their unique strengths and visions.
