According to a recent report, just 0.5% of female founders make it past a Series C funding round. And, despite efforts to improve access for women in business, female-founded startups raised only 2.2% of U.S. venture capital investment in 2018. Across different fundraising levels, women in business face roadblocks that their male counterparts often don’t encounter. Whether these roadblocks stem from a lack of network, awareness or other issues, there is an opportunity for the tech industry to step up and contribute to resolving some of these bias-driven problems that are so commonly found at the core of tech communities. Here are a few ways that technology can serve women in business when it comes to fundraising:
Digital Communities
For many women, tackling networks and valuable connections comes down to creating new communities altogether. Technology has opened up the composition of these communities, connecting more female founders around the country to share resources. Organizations such as Femstreet, Female Founders Alliance and Women TechMakers are cropping up to provide connectivity, shared support and helpful insights for women founders.
Tech For Change
New tech solutions are positioned squarely in the midst of these fundraising challenges. Platforms such as DifferentFunds provide opportunities for investors to fund “impact” projects, teams and ideas. Many investors may have an increasing interest in impact investing, but lack the access to understand where their funds should go and which founders or teams they could support. Platforms that identify and present impactful investing options represent a tangible way that technology can correct a bias-based problem.
Nuts And Bolts
One way that women founders can bolster their own fundraising strategy is by doubling down on their business planning and forecasting skills. Having a deeper knowledge of company numbers and financials can help to invigorate your pitch to investors by reinforcing your competency and confidence in your business. Certain tech solutions are designed to do just this, and founders can look to forecasting and business planning tools to get started.
Prioritizing Diversity
New insights also show us that a more diverse team, industry and tech community at large goes beyond altruist intentions: It’s just good business. According to data from FirstRound, companies with female founders performed 63% better than investments with all-male founding teams. Similar findings from Illuminate indicate that organizations that place women in top management report a 35% higher return on equity versus their peers. Awareness around a lack of funding opportunities for women-run businesses is on the rise. This awareness generates pressure for tech communities to respond with solutions and for diversity to appear on more to-do lists over time.
As an understanding of the business value of supporting women founders becomes more widespread, we will continue to see tech solutions and initiatives rooted in the tech community that contribute to change. Women do not need to wait for the tech community to catch up, though. By focusing on the resources available now, female founders and aspiring entrepreneurs can begin investing in themselves and their businesses today.
2019-10-28 12:00:02Z
https://www.forbes.com/sites/forbestechcouncil/2019/10/28/women-still-have-less-access-to-fundraising-but-tech-can-help/
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