We had an amazing event at the end of last year, and we’ve just been itching to share it with you. This will be a multi-part series.
Fundraising for Female Entrepreneurs Talk – Part I
Back in October, we had the opportunity to host a free talk at Alamo Drafthouse in Austin, TX, that focused on the unique challenges of raising capital for female entrepreneurs. We were especially fortunate to have Kerry Rupp and Kelsey August as featured speakers for the event, and their wisdom and insights were tremendous.
In this post, we’re going to talk briefly about the issues that women business owners face, briefly discuss how they’ve pushed through these challenges to succeed, and why investing in women-led business is a smart strategy.
Doing More With Less: Women Led Businesses Push Through Headwinds to Outperform the Competition
Let’s start with a question.
Did you know that only one female is required on a leadership team for a business to be considered women-led?
This can be anything a single proprietorship, to a full corporate board. That seems like a pretty small number, doesn’t it? While it’s true that this is a low bar, let’s discuss how even this minor change makes a huge difference for the success of a company.
A study by the Kaufman Group, in association with several universities, found that venture-backed companies with a woman CEO had 35% higher returns and a 12% revenue growth. Great news, right?
What’s truly remarkable is that they did this with one-third less capital. That’s right. Only 2% of investment dollars go to women-led companies, and 83% of venture-backed companies do not have any women on the leadership team, even those with a primarily female customer base. There are a number of possible reasons for this: these companies may not have been seeking capital, or may have had trouble obtaining investment because of gender discrimination and other factors.
Whatever the reason, women-led businesses made do with less. Somehow, through methods of efficiency and frugality or some other factors, these businesses performed better and showed double-digit improvements.
Women make 85% of consumer decisions and 80% of healthcare decisions, and with the statistics above, investing in women-led businesses should be a no-brainer. Yet, the numbers show otherwise.
So what can women business-owners do? What’s the takeaway here?
First, yes, it is still a tough world to be a female entrepreneur. Obstacles abound for women who try to break into (and out of) the traditional business standards. But there are options. In the following posts, we will go over how possible sources of capital go beyond venture capital to resources like angel investors and even crowdfunding.
Entrepreneurial women have unique opportunities to do things differently, and that includes how they raise money, follow their passions, and achieve success.