Tips for Women Entrepreneurs to Successfully Fund their Startup
Despite the best efforts, there is still an imbalance between men and women when it comes to business. Female entrepreneurs have statistically received less funding compared to their male counterparts: in 2018, only 2.2% of venture capital funding went to women startup founders. This disparity in startup funding has made it more difficult for female entrepreneurs to succeed.
In this article, we outline some tips that can increase your chances of receiving startup funding as a female entrepreneur.
Build Your Network
Before delving into startup fundraising, you should start building up your network. A good place to start would be the angel investing and entrepreneurial ecosystem in your industry. You want to know what the main sources of capital are and which individual or group can provide said capital. What is their background and what kind of opportunities do they invest in? You need to know this information.
While you should be open to all pitch opportunities, you do not need to pitch to every investor you find. Instead, look for specific people or groups who are the best fit for your business, such as female-focused angel groups.
Have a Robust Business Plan
Having a robust business plan entails knowing exactly how your business will make money. You should be able to describe your potential revenue plan and the margins you can expect. You should also outline your business growth strategy.
If any part of your business plan is unclear, that can lower your chances of receiving startup funding since investors may perceive your idea as being less feasible or that your management skills are inadequate.
Perfect Your Pitch
Developing your sales pitch is crucial to selling your idea to potential investors. You only have a few minutes to sell your idea. Within that short time frame, you have to show that you have the knowledge, confidence, and data to show that your business is not only feasible but also a great prospect. Investors tend to invest in products or services that they can easily understand.
You are responsible for knowing exactly how your startup runs and how it will affect the marketplace. Make sure you know your numbers cold when using hard data to support your idea. Effective communication of these facts to investors will determine whether you can receive the funding you need. Explaining in detail who your potential customers are, your team’s background and experience, and how the funding will be used to enhance your startup will help increase your odds of securing startup funding.
Follow up after your pitch
After you have pitched your business, be sure to follow up within 24 hours. This gives you an opportunity to clarify any issues, lets you make another touchpoint, and shows that you are on top of things. It can also help you stand out from your competitors, because not everyone takes this step.
Accel Business Funding has many different funding options for all businesses and funded many businesses for more than $380 million. When banks say NO, we say YES to funding in 24 hours!