March 29, 2024 10:52 AM

How to get funded as a female-led startup in the industry

A patriarchal society has led to women being mostly minorities, and this shows even in the world of entrepreneurship, so how do you counter this?

/ Published 5 years ago

Female lead startup funding
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Although wrong, it’s mostly been that way for centuries, and it’s a problem that’s still prevalent today. Of course, a smarter and more self-aware generation have led to an increase of women in the workforce, especially among entrepreneurs. But old habits die hard, and women being treated as minorities is still a problem in this day and age.

In fact, per a new report, startups that are co-founded or founded by women receive significantly less funding than their male counterparts, with investments in startups led by women averaging at only $935,000, whilst male-led startups average at $2.1 million. All of this despite women-led startups generating more revenue (38 percent of all businesses in the U.S. are owned by women).

So how exactly do you counter this? And how do you get through a mostly-hostile environment? Here are some tips that are sure to help.

Leverage contracts

First things first: Utilize your resources, and by this we mean your friends, family, former college friends, and even former colleagues. Not only will they be a big help once you started, but they can also give you lots of honest feedback.

It’s also a good idea to visit conferences, business events, and even co-working spaces to meet new people you can build ties with. Chances are, these people are in the same industry as you, and if not, they can still provide you with new ideas and information you can use. Important connections are also made with this method.

Find alternative ways to access funding

And be creative with it. There is a vast pool of methods to get access to funding, you just have to know where to look. So apply for government grants, offer your services to local colleges where students might take an interest. Always remember that financial institutions, like banks, will have more faith than the usual investor. What’s more, these banks also grant loans to any budding entrepreneur with a solid business plan.

startup
Establish a solid brand one can rely on. (Source)

Secure that solid business plan, and be ready for anything

Perhaps the hardest one to do because of all the factors you have to take into account, the payoff in this is usually rewarding because being able to do this will guarantee success for your company. So study every nook and cranny of your papers, and establish a solid brand one can rely on, with an impressive client base.

The world, especially a predominantly male-led industry, will have a field day scrutinizing your work, so make sure you’re prepared for any hurdle they throw at you and include in your pitch some hard data like metrics, facts, numbers, and even revenue.

Being a woman starting a business in the industry, you have to be extra prepared than your male counterparts. So cover all the bases, walk with your chin up, and prove to them why you deserve to be here.

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