Funding Female Entrepreneurs: Gender is an Additional Requirement!

So much has been said about the "Gender Funding Gap" globally and Africa is not exempted from these conversations. There have been arguments about why there is indeed such a massive gap - this is a topic for another day. Because of this gap though, when investors back 1 female founder, they tend to make their publicity about the gender as though that is all it takes to raise money from them. Well, the purpose of this article is to address that misconception!

When it comes to investing in a business, the gender of the founder or CEO is typically not the most important factor investors to consider. Instead, investors focus on the viability and potential of the business itself.

First and foremost, investors want to see good quality business plans that outlines the company's goals, strategies, and projections for growth and profitability. They want to see a clear understanding of the target market and a strong value proposition that sets the business apart from its competitors. Investors love large market opportunities. They love industry/category leaders.

In addition, investors also pay attention to the management team and the skills and experience they bring to the table. They want to see domain expertise. They want to see a team that is well-rounded, with diverse backgrounds and skill sets, and one that has a proven track record of success.

Another important factor is the industry and market conditions. Investors want to see that the business is operating in a growing market with strong demand for its products or services. They also want to see that the company has a competitive advantage and is well-positioned to capitalize on the market opportunity.

All of these factors are considered before any gender-specific ones. While it's true that the number of female entrepreneurs and business leaders is still relatively low, investors are typically more interested in the business itself, rather than the gender of the person running it.

However, it is worth noting that when an investor decides to fund a female founder, they may make the PR look like it was all about gender, but in actual sense, it is about the business first. Making the investment about the gender of the founder helps the investors access more funding, as they are funding "underrepresented founders". So it makes many feel good about themselves and more importantly helps them access more money. And this is true irrespective of the gender of the investor as well. The point is that investors want to see that their money is going to a business that has the potential to be successful, regardless of the gender of the person running it.

I know there have been calls for more female fund managers in a bid to help drive investment into female founded startups. We have also started to see the rise of more Gender Lens investors. Guess what, the dynamics remain the same! You have to meet the typical business requirements that many investors will require, and then add the gender lens to it. It is never gender lens alone. If you doubt me, look at the website of your favorite gender lens investors and check if they have ever or intend to give anyone money solely because of their gender. In essence, gender is an additional requirement for funding not the primary and definitely not the only.

In Africa, there are many female-led startups that are making a significant impact in their respective industries. Some examples include:

• Reelfruit by Affiong Williams: Realfruit is a fruit processing, packaging and marketing company that retails a range of dried fruit and nut snacks in hundreds of supermarkets, schools and hotels.
• Shuttlers by Damilola Olokesusi: Shuttlers is a transportation platform that connects drivers and riders in Africa. Its success can be attributed to its innovative approach to transportation and its ability to provide reliable and yet affordable transportation options to its customers.
• Health Traka by Ifeoluwa Dare-Johnson: Health Traka is a health-tech company that provides a platform for monitoring and managing chronic health conditions. Its success can be attributed to its ability to provide innovative solutions for managing chronic health conditions and its ability to connect patients with healthcare providers.
• Bankly by Tomilola Majekodunmi: Bankly is a fintech company that provides a platform for banking services for the underbanked population in Africa, leveraging thousands of its agent network
• Oriki Group by Joycee Awosika: Oriki Group is a wellness spa company that owns a tech booking platform called Unwind. its success can be attributed to its ability to provide high-quality spa services and its ability to connect customers with unique and authentic products.
• Okra by Fara Ashiru Jituboh: Okra helps businesses access financial information from financial services providers with API integrations.
• Lami by Jihan Abass: Lami is an innovative technology platform that enables the distribution, servicing, and exceptional growth of sophisticated financial products for very large customer bases.
• Indicina by Yvonne Johnson: Indicina offers technology solutions to empower businesses to offer credit to customers faster, more securely, and at scale.
• Aza by Elizabeth Rossiello: Aza is a fintech company that enables businesses to access the African financial system with ease. its success can be attributed to its ability to provide innovative solutions for cross-border payments, and its ability to help businesses navigate the complexities of the African financial system.

If you know any of these founders, call them to ask about the role their Gender played in the funding they got. Ask them if they felt that the investors let them off the hook on key business and operational concerns just because they are female. Ask them how easy the capital raising process was on them, then compare their responses to the Techcrunch article you read.

All of these companies were founded and are led by women, some of these women pioneered the industry, and I dare say that the gender of the CEO is an addendum. Some of these companies (and many more) have found success and have grown rapidly by providing innovative solutions and services to the market they operate in. The founders had a clear understanding of the target market and a strong value proposition that sets the business apart from its competitors. The companies have solid business plans, and strong management teams, and are operating in growing markets with strong demand for their products or services.

Gender is not a major factor in their success, but the fact that they are led by women is a positive indication of the increasing number of female entrepreneurs and business leaders in Africa. Looking forward to seeing more.

Happy entrepreneuring