How to Raise Money and Pitch Your Business as a Female Entrepreneur
Starting a company and seeing it grow is a great accomplishment. However, as a start-up founder, you may feel the need to go even further and reach new levels of success.
If you can fund your company’s growth without external investment, that’s fantastic. But if you require funding from venture capitalists (VCs), it’s important to seek advice from fellow founders who have gone through the process. Eropa Stein, CEO of Hyre, describes fundraising as a time-consuming, exhilarating, and sometimes demotivating process.
For young female entrepreneurs with limited experience and reputation, fundraising can be incredibly stressful. This stress can be amplified by sexist remarks made during investor meetings. Despite the disheartening nature of these situations, women often have to suppress their emotions and redirect the conversation towards a positive outcome.
Unfortunately, female founders may fear the consequences of speaking out against such behavior. As a result, the cycle of underfunding and undervaluing women-owned companies continues.
So, what can you do?
What to expect when fundraising
Eropa Stein has encountered similar situations throughout her career, particularly during her employee scheduling platform’s funding round. It is common for men and women to face different questions in the competitive world of fundraising. Harvard Business Review conducted research on this topic and found that women are more likely to be asked about potential losses, while men are asked about potential gains. These questions are known as promotion questions and prevention questions, respectively.
Many women founders in Eropa’s network have shared experiences of being bombarded with risk questions by investors without being able to share their vision. Assertive founders were labeled as aggressive while meeker founders were seen as lacking leadership skills. But what can be done about it?
Here are some questions to ask yourself when responding to sexist questions:
– How does your response align with your long-term goals?
– Show competence by weaving in your vision to your response.
– Be prepared for undermining questions and respond confidently.
– Focus on the strongest points you want investors to take away.
– Change the way you respond to avoid confirmation bias.
To prepare your pitch for strategic answers:
1. Make a list of potential questions, including both positive and negative ones.
2. Create bullet points that illustrate your vision.
3. Write down a reminder or affirmation on what you want to achieve.
4. Plan for multiple purposes in each meeting with investors.
With a plan in place, you are likely to garner 1.6x the amount of funding by responding strategically. Female entrepreneurs deserve a bigger cut of the funding and times are changing. Good luck with your pitch and keep practicing. If you found this article helpful, feel free to reach out to Eropa, CEO of Hyre, on LinkedIn for the latest updates on Hyre’s temp staffing and workforce management software.
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!