Friday, March 8th, marks International Women’s Day (IWD), a global celebration of women’s achievements and a call for continued progress toward gender equity. The theme for 2024 is ‘Invest in Women: Accelerate Progress,’ emphasizing the need for greater investment in women-led ventures to fast-track social and economic change. However, as I reflect on this day, I can’t help but feel a sense of frustration. Last year, I wrote about the inequalities that female founders face when raising equity investment, and yet, as I sit here a year later, I still feel that little has changed. But before you despair, let me share why, despite these frustrations, there are reasons for optimism.
The truth is, securing equity investment is harder than ever. Beauhurst’s The Deal 2023 report highlights a tough investment landscape, with startups across the board struggling to secure funding—regardless of gender. However, I truly believe that each of us has the power to drive change. While the progress may seem slow, every step counts, and we must take action to foster change. We all have a role to play, whether as investors, founders, mentors, or advocates. I shared my thoughts on this on LinkedIn here
One of the most disheartening aspects of this issue is the persistent underrepresentation of female founders in the investment ecosystem. Last year, only 4 out of the 16 startups that secured funding through our Funding Accelerator had female founders. While this statistic is frustrating, I also recognize that these four startups represent 25% of the total funding raised, which puts us ahead of the market overall. According to Beauhurst data, only 19% of investment deals in 2023 backed female founders. While I would love to see this figure grow, I’m encouraged by the fact that we are making progress, albeit at a modest pace. It’s a small victory, but it’s a victory nonetheless, and it gives me hope that we can continue pushing forward.
As we approach this International Women’s Day, it’s crucial to remember that progress, no matter how incremental, is still progress. The key takeaway here is that we must take action, no matter how small it may seem. Every effort to support and empower women in entrepreneurship contributes to a larger shift. By making gradual changes and promoting inclusive practices, we can begin to see the positive impacts of our collective actions. If we want to truly “Invest in Women and Accelerate Progress,” we must understand that these changes don’t always happen overnight, but through consistent and concerted effort, they are achievable.
It’s this idea of gradual change and shifting behaviours that has informed some of the initiatives we’ve been working on recently in collaboration with Mint Ventures. Mint Ventures is a women-led business angel investment club and network that focuses on providing funding for female founders and diverse teams. This partnership has allowed us to explore new ways of working and challenge the traditional structures of investment, and one of the initiatives we’ve been piloting is the concept of Investment Boards.
Investment Boards aim to create a “safe space” where startup founders and early-stage investors can meet in a confidential, facilitated environment to co-develop specific growth plans. The goal is to foster collaboration, understanding, and alignment between founders and investors by encouraging open dialogue, co-creation of growth strategies, and mutual support. Instead of the usual “them” versus “us” mentality that often characterizes the founder-investor relationship, the boards foster a “let’s do this together” mentality, breaking down barriers and fostering a spirit of partnership.
While it’s still early days for Investment Boards, the feedback from mentors, existing investors, new potential investors, and founders has been overwhelmingly positive. There’s a clear sense of excitement around the opportunity to work together in a more inclusive, collaborative way, and the potential for greater impact on the funding landscape is undeniable. This initiative is just one example of how small, thoughtful changes in how we approach funding can make a real difference for female founders. If we are to “Invest in Women and Accelerate Progress,” it is vital that we continue to recognize the importance of collaboration and look for innovative ways to break down traditional barriers to funding.
One of the most effective ways to accelerate this change is by encouraging more women to consider angel investing. Historically, angel investing has been a male-dominated space, but that is slowly starting to change. Women who have firsthand experience with the challenges female founders face are in a unique position to offer both the capital and mentorship that can help drive the success of these businesses. This is why Mint Ventures and I are working to create more opportunities for women to get involved in angel investing.
As we celebrate International Women’s Day this year, I’m filled with both frustration and optimism. The progress may be slow, but change is happening. Through continued collaboration, support, and innovation, we can create a more inclusive and equitable ecosystem for female founders. It is by investing in women that we will accelerate progress and build a future where women-led businesses can thrive.
So, from all of us at Focused for Business, Happy International Women’s Day. Let’s continue to invest in women and work together to accelerate progress—because when women succeed, we all succeed.
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