Female Startup Funding: Challenges and How to Overcome Them


The startup funding landscape is not the similar for guys and ladies. In reality, guys entrepreneurs are practically twice as most likely to raise at least $199k or much more than ladies, according to a survey performed by 99styles. And you will be shocked to know that $38.9 billion was invested in firms with a female founder that is just 17% of venture dollars founded globally, reports CrunchBase. So what are the challenges that female startup owners face and how can they overcome these challenges?

I have listed the 4 challenges that ladies entrepreneurs generally face.

Let’s dive in:

1- Continual Battle to Prove Seriousness

In spite of a powerful wave of equality and lady empowerment, the planet about us is nonetheless male-dominated. So it takes place oftentimes that male-dominated society does not want to accept ladies in a leadership part.

Ladies-led startups have to struggle several occasions to be taken seriously, let alone the matter of funding. How to overcome this challenge?

Effectively, my pal, this must not be a challenge in the initially spot for the reason that small business acumen is gender-neutral. But we are not living in the excellent planet. Gender-biased exists. And the only way to fight it is to create self-confidence and overcome self-damaging speak.

Do not let damaging comments quit you from reaching your complete possible. 1st, you have to have to think about oneself winner, the other folks will later join. If you create a strong small business strategy and economic model, make a list of important milestones, produce a story that consists of the difficulty your startup solves, create and practice your pitch, and draft an executive summary, you are much more most likely to attract the focus of investors.

two- Poor Networking

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Needless to say, achievement in fundraising depends a lot on visibility and obtaining noticed by the ideal investors. Who knows you and whom you know play an significant part in obtaining funded. A single significant purpose why guys-led startups score much more than ladies-led startups in securing funding is guys have strong networking. And in spite of several efforts, networking is nonetheless a huge challenge for ladies. Why?

Vast networking possibilities are organized about male interests, according to Herminia Ibarra’s classic study. This tends to make networking a difficult process for ladies. How can you overcome this challenge and create a powerful network?

My secret tip to networking is to collaborate with other ladies entrepreneurs and expand your attain. Make oneself effortless to method and be confident to method other folks.

Also, you must not ignore the energy of social media. LinkedIn is the very best social media platform to network with the ideal individuals.

three- Restricted Access to Funding

“Venture capitalists provide funding to these in their “tribe,” notes Bonnie Crater, the president and CEO of Complete Circle Insights. And 89% of investors are male in the venture capital planet. With that stated, ladies-led startups have restricted access to funding as compared to guys-led startups. How ladies entrepreneurs can overcome this hurdle?

Following are some funding possibilities for ladies-led startups:

  • Female-led funds – A lot of thriving female entrepreneurs want to give back to up-and-coming ladies-led small business
  • Funding initiative for ladies entrepreneurs – A lot of funding alternatives have been developed with female entrepreneurs in the thoughts
  • Winning entrepreneur competitions- Government and private sector organize competitions to encourage entrepreneurship
  • Bank loans – Banks at times provide subsidized loans to startups that have exclusive merchandise/solutions

In the super-connected planet, your small business will not endure if you have exclusive merchandise/solutions to provide.

Operate on your visibility, make efforts to get noticed, attempt to connect with the ideal individuals, and be active on social media, in particular on LinkedIn. This can open new doors for you to get funded.

four- Stereotypical Mindset of Investors

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Ladies are not just entrepreneurs – they can have spouses, youngsters, and other responsibilities. So some investors assume that demand from experienced and private commitments can stress a lady entrepreneur and as a outcome, she can’t concentrate on small business complete heartedly. On the other hand, this is absolutely nothing but just a stereotypical mindset.

Do not Arianna Huffington, Sheryl Sandberg, Debbie Fields, or Indra Nooyi have their private commitments! Of course, they do. And their achievement is sufficient to bust the stereotype.

“Leadership knows no gender. As an entrepreneur, you will also assume about your company’s interest initially, irrespective of whether you are male or female,” says Upasana Taku, the co-founder of MobiKwik.

Breaking stereotype is your fight. Some can enable, but you must not anticipate anybody to fight for you.

Having your fundamentals ideal generally assists in fighting stereotypical mindset – capture essentials, make a strong small business strategy, do your investor analysis, discover the vocabulary. And most importantly, be confident

Final thoughts:

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It is normally hard to obtain funding for a startup. For ladies-led startups, it becomes much more hard. But if you think in oneself, absolutely nothing is not possible. If one particular door closes, open a different door. Do not let gender stereotyping come in the way of your dream.