Funds, not flowers!

Lesson 4 of the FemFuel Frempreneurial Journey

Hey there, I'm Jolien! In 2018, my passion for female empowerment led me to explore entrepreneurship as a means to uplift women. I delved into the factors contributing to the low participation of women in entrepreneurship, addressing them step by step.

• Role models? Check! Leaders like Michelle Obama, Sheryl Sandberg, and Malala Yousafzai – there are many of them. Or even someone as simple as your mother. Reflect on the female role models you have or can think of, and consider what inspires you about them. Is it their courage, just doing it? Their ambition? Their pursuit of freedom? Their adventurous spirit to travel? There are countless aspects to draw inspiration from.
• Social capital? Check! Surround yourself with like-minded individuals. Trust me; numerous female organizations exist where you can connect with ambitious women who are eager to make things happen.
• Funding? ... Now we’re talking!

This is what empowerment often boils down to, and where it often ends.

There hasn’t been much progress in how much funding goes to female founders in the past years. This is where I first look at some real time figures here: 

But then, when I started looking at the gender stats, both founders’ and investors’, it totally blew my mind. 1.8% of VC money is invested in women only (March 2024) That’s when I decided I need to get more involved, and be more vocal and active in the ecosystem.

I believe that having (more) women at the investment table will directly increase the number of female founders getting backed. Easy to say, right? Not so easy to execute.

Here is my Jelloow Journey:

I navigated a successful first funding round for Jelloow, our data matching company aimed at revolutionizing the marketing industry. It's evident that numerous startups struggle to communicate effectively with their target audiences, often relying on marketing experts to stand out in a sea of larger competitors.

With Jelloow, our ML/AI navigator seeks to address this challenge by profiling companies based on their unique DNA and categorizing agencies for optimal focus. With over 5,000 data points, we can pinpoint where companies are in their lifecycle and determine the marketing services they require, facilitating successful matches with suitable agencies.

Ps, Since 9th of March 2024, we started our funding round --> Click here

However, securing funding proved to be a formidable task. Despite my co-founder's assistance in pitching, I encountered bias based on gender. 

Some of the examples when I was participating in public funding events:  Mostly I found myself in rooms filled with older men in suits, averaging around 50 years old. The challenge was often clear – convincing them to invest in a young woman passionate about marketing. I realized I wasn't their role model; they idealized young, ambitious men. Moreover, they were more attuned to masculine industries, indifferent to the nuances of marketing.

The breaking point came when an investor questioned my desire to have kids. The implied assumption was that focusing on family would lead to business decline. I refused to accept such shortsightedness. Building an incredible team and determined to challenge stereotypes, we secured our first funds and are now in the midst of our second funding round

Funds, not Flowers

Here are some tips for female-led companies seeking funds from male-dominated industry investors:

• Know Your Audience: Research the investors thoroughly to understand their background, preferences, and industry focus. Tailor your pitch to highlight aspects that resonate with their interests and priorities.
• Confidence in Competence: Project confidence in your competence and expertise in the industry. Emphasize your qualifications, achievements, and unique insights that set you apart.
• Address Potential Biases Directly: Acknowledge potential biases that might exist and address them directly in your pitch. Share success stories and statistics that showcase the performance of diverse teams and female-led companies.
• Focus on Results and ROI: Emphasize the results and return on investment (ROI) that your company can deliver. Use data and metrics to demonstrate the financial potential and market opportunities.
• Build a Strong Advisory Team: Assemble a diverse and experienced advisory board to strengthen your credibility. Highlight the expertise of your team members and advisors to instill confidence in potential investors.
• Educate on Industry Knowledge: Educate investors on the value your company brings to the industry. Clearly articulate how your product or service addresses a market need and the potential impact on the broader industry landscape.
• Network Strategically: Attend industry events and network strategically to build relationships with potential investors. Leverage networking opportunities to showcase your company's strengths and establish personal connections.
• Seek Mentorship: Seek mentorship from successful women entrepreneurs or investors who have navigated similar challenges. Learn from their experiences and gain insights on how to effectively engage with male investors.
• Be Prepared for Tough Questions: Anticipate tough questions related to gender, family, or industry stereotypes.Develop thoughtful responses that redirect the focus to your company's merit and potential.
• Cultivate Resilience: Understand that challenges may arise, but resilience is key.Focus on the positive aspects of your business and your vision for the future.

Remember, authenticity, preparation, and a strong focus on your company's value proposition are essential elements in successfully navigating fundraising in a male-dominated industry.        

Why are female founders a better bet than you might have thought?

Investing in female founders goes beyond a moral obligation; it's a sound investment strategy. Research indicates that female-founded companies often tap into overlooked market niches, offering unique advantages. 

• Back in 2015, First Round Capital reported a remarkable 63% outperformance of female-founded companies in its portfolio compared to their male-founded counterparts. 
• Harvard Business Review highlighted the comprehensive case for investing in women-led startups in 2017, citing improved fund performance for venture firms backing female entrepreneurs. 
• According to a 2018 BCG publication, startups with women founders or co-founders exhibit sustained success, generating 10% more cumulative revenue over five years. 
• Additionally, companies led by female CEOs demonstrate better stock price performance. 

Let's not just talk about it – numerous articles showcase that female leaders can match the achievements of their male counterparts! As we steer through the early days of female entrepreneurship, seizing this opportunity holds the potential for a substantial and positive impact on the future for everyone.

However, our focus should shift towards the hard facts, the funds, rather than being distracted by mere flowers.

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