Did you know that women led companies receive only 2.3% of all venture capital funding? Moreover, only 12% of venture capitalist decision makers are women. (1)

At WIN, we believe in closing the gap on investment disparities by creating an ecosystem of women entrepreneurs interested in seeking funding and angel investors. We understand that women have hesitancies on both sides, and offer the network and the tools to help.

How is Angel Investment Different from Venture Capital?

Venture capitalists typically invest in long-term growth companies with potential for high returns, and are part of an institution or firm. They tend to invest larger amounts, with a preference for companies at a later stage of development. Angel investment, on the other hand, is private investing at the early stages of company formation. They typically have a closer relationship with the members of the companies they invest in. As angel investors invest their own capital, they are more open to taking risks on companies with missions they are passionate about. (2)

What are the Pain Points for Women Entrepreneurs Seeking Funding?

At WIN, we have spoken with our members about the challenges they find in seeking funding. One is uncertainty about how investment works, and how it differs from other types of investment. That’s why at WIN we educate our members through events and mentoring.

Another challenge is a lack of confidence when pitching. Oftentimes, when pitching their ideas to male investors, women are met with greater doubt before they even enter the room. They are also more likely to accept criticism without counter argument. The socialization of men to be confident and assertive and women to be accommodating unfortunately leads to men over-selling big ideas and winning investment, while women lose out on viable projects. (3)

There is also the disconnect between what appeals to women and what appeals to men. In our journey to create WIN, we encountered a company that offered a product to improve bladder control for women. While women investors understood easily why such a product was highly marketable, male investors did not.

It’s Time for Change

Statistics don’t lie. Companies started by women are two times more likely to create a greater return on investment. According to Inc.com, women-founded startups earn an ROI of 78 cents on the dollar, while their male counterparts earn an average of 31 cents.

Are you a successful woman who is ready to invest in promising new business ventures led by women or an entrepreneur who is ready to learn more about receiving investment? Then you’ve come to the right place.

Sources

1- https://www.outsidebusinessjournal.com/issues/education/secrets-from-an-angel-investor-get-your-women-led-outdoor-startup-funded/

2 - https://www.indeed.com/career-advice/career-development/angel-investing-vs-venture-capital

3- https://www.inc.com/marcel-schwantes/women-entrepreneurs-pitching.html