The Real Barriers Holding Women Back From Investment

Welcome to the October edition of "Empower Her Voice!" This month, we’re cutting through the noise and getting real about what it takes for women founders to secure funding. Whether you're just starting out or scaling up, these practical insights from women investors will help you take control of your fundraising journey. Plus, we’re spotlighting Europe’s persistent gender funding gap and what needs to change.

Let’s get started!

Five fundraising recommendations from women investors

After speaking with 58 women investors from around the globe, PWC gathered five essential tips to help you level up your fundraising game:

• Master the VC Playbook

Many women founders aren’t familiar with how the VC world operates. It’s crucial to learn the jargon and understand what VCs are looking for. If you don’t know what a pre-money valuation is, it’s time to brush up on your knowledge.

• Look for Investors Who Align with Your Values

Not all money is good money. Find investors who share your vision and will be long-term partners in your growth. The chemistry between a founder and investor is critical—it can make or break your success.

• Build a Targeted Network

Start networking at least 6-12 months before you need funding. Focus on building genuine, strategic relationships rather than just collecting business cards. Stay in touch with a purpose.

• Be Ready for Personal Questions

Women founders often face personal questions about their lives, caregiving, or future plans. Be prepared to answer these confidently and pivot back to your business metrics.

• Sell the Vision, Not Just the Numbers

Women tend to focus on the present state of their business. Don’t forget to paint a bold picture of the future! Investors want to see your potential for growth, not just what you’ve achieved today.

The Gender Funding Gap in Europe: Still Shockingly Low

Women founders are still being underfunded including in Europe. In 2023, women-led startups in Europe secured just 1.6% of total venture capital, compared to 2.1% in the US. Despite women representing nearly one-third of all entrepreneurs globally, the capital flow doesn’t match.

Why? The investment world remains male-dominated, with only 15% of decision-makers in European VC firms being women. This lack of diversity perpetuates unconscious bias, leading to a persistent funding gap.

But there’s a glimmer of hope: Women angel investors are on the rise. Nearly 47% of angel investors in the US are now women, and Europe is starting to catch up. While progress is slow, it’s clear that the future of funding must include more female decision-makers to close this gap for good.

Where VCs are placing their next AI bets

The AI funding frenzy has slowed, and now VCs are focusing on substance over hype. Investors are scrutinizing metrics like customer retention, acquisition costs, and scalability. The takeaway? Startups in regulated industries like healthcare and financial services have an edge. VCs are looking for solutions with long-term potential, not just a flashy AI label.

Investment corner:

Securing funding can be daunting, especially for women who often receive less early-stage capital. To support you, I’ve compiled a list of VC firms and accelerators focused on female founders:

• Download my extensive list of VCs and accelerators across the globe investing in women founders.
• Explore important KPIs venture firms care about at different stages. Learn more about the metrics here.
• Discover 250+ female angel investors across Europe in this Sifted list.
• Coralus is offering an interest-free loan repayable over 3 years—an opportunity that’s quite rare. If interested, you can apply here.
• The Artemis Fund just raised $36 million for their second fund! They’re backing diverse founders in fintech, commerce enablement, and the care economy. Submit your pitch here.

Resources Corner:

Here are some new funds, grants, and accelerators. These resources have helped other founders succeed and can do the same for you:

• Revenue Sharing: Is It Right For Your Business? Get insights into revenue sharing models and decide if it’s the right fit for your business with this 2024 guide. Read more here.
• Sie Ventures Bootcamp with AWS This bootcamp, in partnership with AWS, is designed to help 20 founders raise funds. Apply here.
• Building in Public? Thinking of building your startup in public? Watch my video on how to get started here.
• A Guide to Friends and Family Funding: Discover strategies for securing early-stage funding from friends and family. Read the guide here.
• Discussion with Nomiki Petrolla at PDS Lab : Missed my recent chat with Nomiki Petrolla about product and fundraising strategies? You can watch the full recording here.

Upcoming events:

• Pitch HearstLab: The biggest competition for women-led startups in the world. Upcoming events: London: October 16, 2024 ???? Atlanta: November 12, 2024 ????
• Slush: November 20-21, 2024 in Helsinki ???? Slush is a startup and tech event held annually in Helsinki, Finland. Slush facilitates meetings between the founders of startups and investors such as venture capitalists, accomplished with events such as matchmaking and pitching competitions.?

As we push forward into the final quarter of the year, let’s remember that securing funding isn’t just about money, it’s about claiming your rightful place in the world of entrepreneurship. If you’re a female founder with a story to share or in need of support, I’d love to connect with you.

Until next time,

Sarah