Embarking on the entrepreneurial journey has always been a formidable challenge, but for women founders, the landscape is gradually evolving for the better. While hurdles persist, voices from the entrepreneurial realm suggest that positive changes are underway.
According to Victoria Zorin, founder of Australian crowd analytics software company Nola Technologies, there is optimism surrounding the current environment for female entrepreneurs, “It’s an amazing time to raise funding as a female founder.” Zorin, who was honored at the Forbes 30 Under 30 Summit Asia, acknowledges a significant shift in the last eight years, attributing it to increased investments in programs and heightened awareness, compelling investors to consider female-led startups.
However, a funding gap remains evident, with a mere 2.1% of venture capital investments in the U.S. directed toward businesses founded solely by women in 2022, according to a Pitchbook report. Olivia Cotes-James, founder of menstrual health startup Luüna, acknowledges discrimination in fundraising but notes a positive shift. She highlights, “I have been able to point to many instances where you are asked questions that you know a male counterpart would not be asked during the pitching process and hurdles that exist due to gender. But truthfully, from my perspective, I do think it’s oftentimes or has been a little bit different now.”
While the entrepreneurial landscape has become more supportive in recent years, a report by UBS indicates that investors still favor male-led startups, even when women deliver pitches comparable to their male counterparts. Cotes-James addresses misconceptions that female founders are not as ambitious or driven for commercial success, emphasizing the importance of challenging such stereotypes.
Despite these challenges, there are success stories. Luüna, founded by Cotes-James, successfully raised over $1.5 million within two rounds of seed funding. The company has collaborated with major firms like UBS, Goldman Sachs, and Morgan Stanley to provide free menstrual products in women's bathrooms.
Additionally, the Biz2Credit report reveals that in 2022, the funding rate for women-owned businesses surpassed that of businesses owned by men, reaching 41%. However, the average funding size for women-owned companies remains significantly lower at $55,898 compared to the $93,976 average for male-owned businesses.
Addressing the deeper issues, Cotes-James warns against viewing support for female founders as merely a trend, emphasizing the need for sustained efforts. Misguided beliefs persist, such as the notion that women are not as adept at building companies, challenging the progress made in supporting female entrepreneurs.
For women navigating the entrepreneurial landscape, mentorship and a well-rounded perspective are crucial, as highlighted by Zorin. With perseverance and understanding their customer base, women founders can overcome challenges and contribute to the changing narrative of female entrepreneurship.
While acknowledging the progress made, it's evident that women founders continue to encounter hurdles. Embracing opportunities, projecting confidence, and learning to say no to short-term gains for long-term goals emerge as key advice for women entrepreneurs as they navigate the dynamic and evolving business realm.
