Less than 1% of U.K. venture funding goes to all-female teams and female entrepreneurs frequently feel judged to be less competent than their male peers.
Alison Rose, recently appointed CEO of RBS states: “I firmly believe that the disparity that exists for women entrepreneurs versus men is unacceptable and holding the U.K. back. The unrealised potential for the U.K. economy is enormous.”
by Joy Burnford
photo: Null Getty
Thus concluded the U.K. government’s Alison Rose Review of Women Entrepreneurs.
Similarly, a report by Venture Capital, the international journal of entrepreneurial finance, recognizes: “There is still a significant gender gap, with all-men venture teams being four times more likely to receive funding from venture capital investors than ventures with just one woman on their team.”
So against this backdrop what are the secrets of success for women who want to raise finance? I spoke to three women entrepreneurs to find out what makes for a successful pitch.
Coming from male-dominated investment banking and therefore used to standing her ground, one female founder and CEO I spoke to, still faced 90 rejections before she won her first investor. Now on her third round of fundraising for her sauna and spa products business, it took her a year to secure her first $50,000. She persevered on the advice of her previous boss, who warned that she would need to talk to 100 people.
She experienced first-hand the hidden challenges as a woman dealing with mostly male investors. When her first investor turned out to have motives other than simple ROI, she had to find a friend to buy out his shares. Second time round was easier: a large group player with “real revenue, much more objective and no ulterior motives” invested $1.2 million.
With her business in the beauty space she finds working with women easier. Women get the value proposition more quickly; they are more trusting and less skeptical, more respectful and straightforward and they ask fewer questions. And are more likely to fund women entrepreneurs.
Her first tip is clarity: “Some men will string you along a bit. The more you can back up your business vision, the easier it is to say no to those you don’t want involved.”
One Founder’s Tips On Pitching for Investment
- Guard your time and energy: be careful to set the right tone, establish clear timelines and due diligence. Don’t let people string you along and waste your time. Continue reading….