Raising capital to launch a business is no easy task. As a female, you may find it to be especially laborious.
Here are some ways that you can raise more capital as a female founder.
Research venture capital firms
Researchers have found that capital firms with all-male founders have been known to seek out male partners. It may not be a bad idea to research firms that have a track record of investing in female founders. You can also look into firms that are required to have one female founder at the minimum to better your odds.
Take advantage of crowdfunding
Underestimating the power of crowdfunding can be a big mistake. One female entrepreneur raised over $3 million from crowdfunding alone without the help of any venture capitalist firms. She said she did so by dedicating over 50 percent of her time to getting people to go to the donation page. The other 50 percent of the time she said she was working on ways to connect with her audience to get them to donate.
It could be that women are better at connecting with their audience. Research has shown that women who crowdfund have a 32 percent higher success right and acquire more pledge dollars than men acquire. Using this method of fundraising to your advantage could put you ahead of your male counterparts.
Negotiate with confidence
No matter the avenue that you take to raise the money it is critical that you create an effective pitch. If you aren’t able to sell yourself let alone your product you will have a harder time getting what it is that you’re asking for. Standing your ground in the negotiation process can help you come across as competent and confident and keep you from being pushed around.
Marissa Ann Mayer, president and CEO of Yahoo!, once said, “If you push through that feeling of being scared, that feeling of taking risk, really amazing things can happen.” By keeping your goals in mind and creating a fundraising game plan you can overcome the obstacles female entrepreneurs face and raise more capital than you ever thought possible.