Top 6 Recommendations for a more equal Fundraising Landscape

Navigating the fundraising landscape in 2023 was no easy task, especially for female entrepreneurs. All the more reason to share the stories of women who successfully secured funding despite the challenges. That’s why we interviewed four extraordinary female founders in the DACH region whose inspiring journeys highlight not only their resilience but also establish them as role models for aspiring female entrepreneurs.

In collaboration with the Vienna Business Agency, Female Founders has just published a comprehensive report on the funding landscape for female entrepreneurs in the DACH region. Our goal with this initiative is to address and highlight the specific challenges and opportunities women face in securing funding and growing their businesses. But beyond the data, this report tells the stories of female entrepreneurs who have successfully navigated the funding landscape and raised funding in 2023.

Together with the findings from the qualitative survey, the personal success stories of female founders formed the backbone to define actionable recommendations to foster a more inclusive and equitable tech environment. In this post, I will share my personal experience of interviewing four incredible founders, uncovering their fundraising experiences, and highlighting the top 6 recommendations from our report to drive impactful change and champion gender diversity.

Founder Interviews: Real stories, real impact

As part of this project, I had the unique opportunity to conduct in-depth interviews with female founders from Austria, Germany, and Switzerland, diving into their personal experiences and gaining valuable insights to inform our report. Each conversation was a deep dive into the personal and professional journeys of these remarkable women. From initial challenges to groundbreaking successes, their stories were truly inspiring and showed the diverse landscape of entrepreneurship in the DACH region. 

What stood out most during the interviews was the shared passion these women have for their ventures and the change they wanted to drive. They aren’t just building businesses, they are on a mission to create impact. Their drive was infectious, and it was clear that their success wasn’t just personal but a beacon of hope for other female entrepreneurs. I really enjoyed witnessing their passion not just for their own companies but for the broader movement of supporting female entrepreneurs. 

Networking shouldn’t be underestimated.

A common theme in all their insights was the importance of having a network of supportive peers and mentors. This sense of community is at the heart of what we do at Female Founders, and it was gratifying to see how much it resonated with these incredible women. That they are able to reciprocate the support we aim to offer, by offering their own takeaway and advice, emulating the cyclical effect that a powerful network can offer. This reciprocity is the cornerstone of high-impact relationships, where the true value lies in mutual support and shared growth:

“Actively contribute to your network by offering support, insights and resources without expecting immediate returns. Giving generously, whether through sharing expertise, making introductions or celebrating others’ wins, fosters authentic connections and positions you as a valuable asset within your network.” (Networking That Counts: Fostering High-Impact Relationships For Entrepreneurial Growth)

 

 

What also helped me is actually also seeing other founders doing it. So even exchanging with other founders, first of all, hearing that other founders struggle as well, that other founders get a no as well. To hear these stories to understand, it’s not just me. It’s normal to get no’s and to get rejections. I think that was also an important factor that helped me to not give up and then to finally succeed and realize, OK, I can do it too. (Kimberly Breuer, Likeminded)

I deeply appreciate that they took the time to collaborate with us for the report, given how busy founders’ schedules can be. Their willingness to engage and share their experiences highlights the strength and vibrancy of our network.

I was relieved to hear that none of the founders I talked to experienced active discrimination in their fundraising efforts due to their gender. However, our report shows that investment disparities remain stark for female-led teams, with many challenges deeply rooted beneath the surface. The data paints a clear picture of the ongoing issues faced by female founders, with female-led teams receiving significantly less funding compared to their male counterparts, underscoring the need for targeted interventions, based on Atomico’s State of European Tech, and proportionally, even worse off based on the DACH region data from EY that we included in the report.

Recommendations:

Highlighting these challenges is just the first step. Our goal is to provide actionable recommendations that can foster a more inclusive and equitable tech environment. The insights from our report are designed to guide stakeholders in making impactful interventions and to encourage ongoing efforts to promote gender diversity.

Here are the top 6 recommendations that emerged from our findings, designed to level the playing field for women in tech:

#1. Services to Enhance Networking

Dedicated networking platforms and mentorship programs are essential for connecting female founders with investors and experienced entrepreneurs. This includes regular events, workshops, and tailored mentorship schemes to help women expand their networks and increase visibility to potential investors. Given that networking and referrals are primary sources for investors to discover new deals, enhancing these services is crucial.

“Being an entrepreneur can be lonely, hence meeting other women who understands you, both professionally and personally, can make a difference to your business’ success. Women tend to gravitate towards environments that are more collaborative and may feel uncomfortable pitching their business or sharing insight at a male-led event that is highly competitive and testosterone-driven. There is a long way to go before the business world is gender equal, and until then there will be a need for female-only networks that can support and encourage women to succeed in business.”(Why Female Entrepreneurs Should Join Women’s Networks)

#2. Increase Visibility of Gender-Focused Grants

Boosting both the availability and visibility of grants specifically designed for women-led startups is critical. Simplifying the application process can make these grants more accessible, providing vital financial support to bridge the funding gap for gender-diverse founding teams. Initiatives like the financial funding bonus for female-led projects by the Vienna Business Agency have already shown positive impacts. By the way, for Vienna-based startups, you can explore their current funding offerings here. 

#3. Develop Inclusive Funding Criteria

Providing training for investors to recognize and mitigate unconscious bias is essential. Developing funding criteria that explicitly value diversity ensures more equitable evaluation processes, encouraging a diverse range of startups to apply for funding. Organizations like the Vienna Business Agency and January Ventures are leading by example in this area.

#4. Foster Public-Private Partnerships

Promoting collaborations between the public and private sectors can support female-led startups more effectively. Implementing matched funding schemes reduces investment risks for private investors, thereby increasing funding for gender-diverse teams.

#5. Advocate for Policy Changes

Recommending policies that mandate a minimum percentage of funding for startups with gender-diverse teams can help address the existing funding gap. Such policies ensure that diversity is prioritized in investment decisions.

Not only is it important to establish new funding criteria, but also to evaluate the effectiveness of existing funding initiatives in supporting women entrepreneurs, as highlighted by a recent research from Harvard Business Review. A report by the OECD points out that while governments have many policy tools at their disposal, they are not always neutral in their application

“By putting in place regulations to assess the gender equality of entrepreneurial funding measures, policymakers can unveil any risks for gender-unequal policy initiatives.” (Research: How to Close the Gender Gap in Startup Financing)

#6. Implement Structured Support Programs

Creating incubators and accelerators that offer equitable access to gender-diverse startups is crucial. These programs should provide equity-free funding, strategic advice, market access, fundraising knowledge, and operational support to enhance growth prospects. Combining several aspects in one program can be the most effective approach.

Now, our team at Female Founders might be particularly supportive of this approach, as we offer our own investment readiness program, Grow F. But we have definitely seen the positive effects of this, as our Grow F alumni have raised over €62.6m so far since our program initially launched. 

To wrap things up on a high note, here’s one final recommendation that we’re particularly passionate about:

#7. Promote Female Role Models

We need more female role models for aspiring entrepreneurs to look up to. By increasing the visibility of successful female entrepreneurs and gender-diverse teams through various media channels, conferences, and online platforms, we can inspire both current and potential founders. Highlighting these role models not only motivates emerging entrepreneurs but also attracts more investors to support women in entrepreneurship.

Closing Remarks:

Engaging with these founders and sharing their success stories was a valuable journey of inspiration and learning. It exemplifies how our recommendations can be put into practice by promoting female role models and building a supportive community. The experiences shared by these founders reinforce the importance of our mission at Female Founders: to empower and support women in their entrepreneurial endeavors.

As we move forward, it is essential to continue sharing these success stories and working towards leveling the playing field for all entrepreneurs. By adopting these recommendations, stakeholders can make significant strides toward a more inclusive and equitable entrepreneurial ecosystem. Supporting female and mixed-gender founding teams not only fosters diversity but also drives innovation and economic growth. Let’s continue to champion these efforts and pave the way for future generations of female entrepreneurs.