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Winning Over Investors: Expert Tips for Female Founders Seeking Funding
In the 2022 financial year, fewer than 1% of private sector funding secured by start-ups went to solely women-founded companies, while more than 85% went to solely male-founded companies. The Enterprising ME Funding and Women report released last year acknowledges we are seeing a gradual upward trend towards gender parity in entrepreneurship, while much work is still needed across society to address continuing underrepresentation.
We asked three of our Female Founder Festival panelists for their tips in seeking funding:
The ASE Group co-founder Tionne Young
Sally Branson Consulting Group founder Sally Branson Dalwood
Brand relationships therapist Dr Anna Harris
Know your purpose:
It’s important to understand what’s important to you and your business when you start. Looking for funding. Do you want a relationship that will provide mentorship? Are you planning fast growth and world domination? Or would you prefer a less risky and slower path that will provide more stability for you and your family? It’s important to understand your own parameters going into the process so you can determine what funding model may be best, be it angel funding, a government grant or corporate partnership, and which relationships will serve you best.
Network, network, network:
Be strategic about your networking. Not every event is worth your time, but some can be life-changing. Branson says building relationships are everything in business. The people in your networks can be everything from a good source of business advice, a potential client, or a warm introduction to a potential investor. Young says she met a funder at a convention when she introduced herself to an Academy for Enterprising Girls staff member and asked if she would be her “conference buddy”. She didn’t know it then, but that relationship would develop into a rewarding business collaboration in which The ASE Group delivers inspirational business workshops to high school girls across the country on behalf of COSBOA.
It’s not just about the first date:
You need people to fall in love with your brand but also commit to the long-term. Sure, first impressions are vital, but make sure you’re not concentrating on this part of the process only. Just like after a romantic first date, you need to continue the relationship and help it deepen, so think through how you’re going to do that once you make that initial connection. As Harris counsels: “You don’t want to be forever first-date Freddy, you need to get people to make a commitment.”
It won’t happen overnight:
Securing funding is often a long and challenging process, and persistence is key. Rosie Dumbrell, winner of the 2024 Enterprising ME Kickstarter Challenge, knows this firsthand. She founded her business many years ago and has worked tirelessly to grow it while balancing family life. It took time for her to secure the right funding and build a strong network, but her dedication has paid off, allowing her to scale her impact. Her journey is a testament to the fact that while progress may be gradual, staying committed to your vision and continuously refining your approach can lead to success.
Go the extra mile:
It’s all about perseverance but our panel heard an incredible story from an audience member about a fellow female founder who had identified a group of investors she was targeting. She found out they were into kitesurfing, and so learned how to kitesurf and travelled to San Francisco to effect a meeting and close the deal.
Not all money is good money:
Generally, the fundraising process takes a long time and is competitive, so it can feel like any opportunity should be seized on immediately. But be careful to weigh up whether this is the right relationship for you and your business. As a crisis consultant, Branson says she’s worked with women who have found themselves in big trouble when a relationship doesn’t serve them well but they can’t find a way out. As Harris says: “It’s actually harder to get rid of a shareholder than a husband.”
Go with your gut:
Trust your instincts and seek advice. Use your support network to bounce ideas and discuss your apprehensions so you can work through whether an opportunity is for you or not. “In negotiating relationships the gut is so important. I’m not saying it’s women’s intuition but you get a really good gut feel and we can trust our instincts,” Branson says.
Join our live or on-demand Masterclass session focused on securing funding and fueling business growth. Gain expert insights, practical strategies, and the confidence to take your venture to the next level. Explore the session here.
Women are more vulnerable than men
A recent Cyber Wardens research report found women are more likely to have no confidence or low confidence in their ability to prepare for, fight and recover from an incident.
The poll of more than 2000 small businesses found 3 in ten women (36 per cent) can’t recall a time they’ve talked about cyber security in their business, compared to 20 per cent of men.
Join the Cyber Wardens program today to secure your digital assets and gain confidence in protecting your business. The course is specifically designed for small businesses and is free for female founders like you.
Click here to sign up for the Cyber Wardens course and start learning how to safeguard your business from cyber criminals.
