In today’s world, you’ll surely agree with us that male startups get more funding than female startups. This thing happens all over the world. In India, for example, women make up approximately 14 percent of entrepreneurs. Even at that, they still get less funding compared to their number. A lot of factors contribute to the gap between male entrepreneurs and female founders when it comes to raising capital for their businesses. To bridge this gap, more female venture capitalists are now coming into the industry, focusing more on female founders.
As a female founder, what exactly do you need to get funded by venture capitalists, especially the women in VC, such as She Capital? Read further to discover the answer to this FAQ.
3 tips on how to get funded by venture capital
1. Have a business idea arsenal
As a female founder, having an idea arsenal is essential to getting funded by venture capitalists. Your arsenal shouldn’t only carry ideas that resonate with you. In addition, you also need to have ideas that cater to the real needs of people.
You’ll surely agree with us that the venture capital industry is mostly dominated by men. If you want to stand a chance, you certainly need to come up with business ideas that cater to the needs of both men and women.
Of course, running a gender-specific business isn’t bad. However, if you’ll be needing funding to run the business, you’ll most likely have a hard time getting men in VC to fully understand women-specific ideas. The best you can do, in this case, is to consider seeking funds from women in venture capital.
The bottom line is that the ideas you have in your arsenal matter a lot for you to get funded by venture capitalists.
2. Consider networking like a man
If you want to attract venture capitalists of both genders, you certainly need to network like a man. Today, we all know that men dominate the industry when it comes to sourcing more funds. One of the few reasons why this is possible is because their networking game is high.
That said, as a female startup founder, you need to up your networking game if you want to attract more investors (both male and female) to your business. Interestingly, there are a couple of ways around this; first, you need to attend more conferences and practice personal introduction. You can also consider connecting with your target investors online. Lastly, you need to find and join the right circle of venture capitalists.
3. Consider women in venture capital
As earlier mentioned, female entrepreneurs don’t always get enough funds in the industry. To increase your chances of getting funds, one thing you can consider doing is attracting more female investors. Interestingly, a few female-focused venture capitalists now exist in India. This is good news as you know you’re competing against women entrepreneurs to raise capital for your business.
As a female startup owner, it’s much easier to get funds from women in venture capital, such as She Capital. To increase your chances, make sure you do your due diligence. This involves achieving a degree of traction in your business in terms of revenue, contracts, strategic partnerships, and many more. That’s not all; doing your due diligence also requires you to know your business valuation, determine the exact amount of funds that your startup needs, put your pitch together, and then target the right female venture capitalists.
