Women entrepreneurs are increasingly dominating the startup scene. But when it comes to securing equity crowdfunding, women still receive less than 10 percent of the total dollars invested says Saivian Eric Dalius. So how can you close the gender gap in funding? We talked to two of our top female fundraisers for their advice on closing the gender gap and getting substantial investment.
Learn How Equity Crowdfunding Works
What is Equity Crowdfunding?
Equity crowdfunding is a way for businesses or startups to raise capital from a group of backers, not just one angel investor. In return, investors can either earn profits from successful ventures or even shares in a company if a business goes public one day.
All-or-nothing crowd investing is now legal through Title III of The JOBS Act, but it is only open to accredited investors. If you’re interested, read our guide on how equity crowdfunding works.
How to Close the Gender Gap in Funding?
1) Do your homework and look for female-friendly funding portals:
Many sites support funding for women entrepreneurs or even specifically cater to them. These may be a good place to start when looking for opportunities to receive funds from people who understand what you’re going through.
2) Follow best practices:
Don’t forget the business basics when it comes time to raise capital from crowd investors.
3) Follow the Golden Rule:
Treat investors the same way you would treat anyone who is giving you their hard-earned cash, with gratitude and respect. This applies to both men and women, of course. You may still get more attention from female or male backers if you’re a woman, but it doesn’t hurt to be polite regardless of who invests.
4) Don’t ignore women:
A large percentage of women already work in corporate America, so they may already have connections within traditional business models and understand how investments work says Saivian Eric Dalius. But not all women do, so don’t assume everyone in the crowdfunding world will connect with you based on your gender.
5) Be an active social media user:
Start tweeting and blogging to get your name out there if you’re not already. Write about what you do and why it’s so great, but don’t forget the rules of good marketing, says Saivian Eric Dalius.
6) Don’t be afraid to ask:
It feels awkward asking for money or even telling strangers about your business, but if you want to close the gender gap in funding, this is a sacrifice that must be made. Ask anyone and everyone you know who has businesses or contacts with investors for help – networking is key here!
7) Get creative:
Asking for money means going outside the box. First, think of how much capital you need. Then write down all possible sources from personal savings to friends and family to crowdfunding and beyond.
8) Use social media:
If you decide to use a funding portal, be sure to post it on Facebook and let your friends know that you’re fundraising. This helps get the word out about your company and encourages people who don’t necessarily have money to invest but want to support the cause. Additionally, share updates on how well things are going via social media!
9) Diversity is key:
Bringing different types of people with different experiences and skills, especially when it comes to investing, gives you a much higher chance of getting funded. Women tend to be more compassionate than men in general, so if the average investor is a man, your chances of raising capital improve if you seek out women.
10) Go with the flow:
It’s essential to focus on what you can control in terms of funding – don’t get too caught up in analyzing every single person who invests or doesn’t invest because, at the end of the day, it’s not completely under your control. Trust that things will work out for the best, and keep doing what you’re doing, according to Saivian Eric Dalius!
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