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Over the past three years, VC lending to women-owned startups has declined by 75%. According to a report by Tracxn, VC lending to women-led startups peaked at $6.5 billion in 2021, but fell to $1.1 billion in 2023. According to data, the Indian technology startup ecosystem raised USD 8.7 billion in 2023. Of this amount, US$1.15 billion was raised by women-led businesses, accounting for 13% of the total.
So far this year, women-led startups have witnessed $112 million in funding, almost the same as the $123 million raised in the first two months of 2023.
To address this imbalance, Entrepreneur India spoke to several women venture capitalists. Here are five things they advise female founders to know.
Prioritize networking and develop confidence
Networking plays an important role in an entrepreneur’s life. Pearl Agarwal of Eximius Capital Ventures advised women founders to focus on this important aspect. “First, prioritize networking and establish connections outside of a strictly professional environment to build credibility. This network is invaluable in navigating a variety of situations effectively,” she says. Told. “Secondly, cultivate confidence and embrace self-promotion. It’s important to be confident and not be afraid to sell or highlight your strengths. Confidence is extremely important in your fundraising journey. It is a powerful asset.”
find long term investors
Kanika Mayar of Vertex Ventures suggested female founders strive to find investors who will be long-term partners and support their businesses as they scale. According to her, this is not easy. Building partnerships takes time, so founders may have to meet many investors before they feel comfortable finding the right one.
“For women, this can be more difficult because the fit between founder and investor is highly subjective. It depends on how well they relate to each other on a personal level. Therefore, female founders need to work harder to find investors with whom they feel comfortable. We need to be more patient and positive throughout the process,” she said.
Find a mentor
Seema Chaturvedi, founder of Achieving Women Equity (AWE) Funds, recognizes the critical need for mentors, especially for female founders. “Motivated teams have innovative ideas, but they do better when they have the support of people with experience growing and scaling companies. Such mentors have previously “I’ve seen it before and it can lead young startups to avoidable mistakes while prioritizing growth,” she added.
Focus on existing or repeat customers.
According to Anisha Singh, founder of SheCapital, existing or repeat customers are critical to a business. “It’s infuriating that companies spend so much money on customer acquisition, but so little thought is given to customer retention. Power users, loyal customers who come back often, are important,” she says.
She says the market is a little tighter than before, but that doesn’t mean money has dried up. Investors just want to see a good, scalable business, so “focus on proving it.”
admit shortcomings
Founders should recognize their shortcomings and work towards them to the best of their ability. According to Kalari Capital’s Vani Kora, in order for people to become great leaders, they need to be willing to admit their flaws. “Leaders don’t have all the answers. True leadership begins by acknowledging our gaps,” she wrote in a LinkedIn post. She also urged founders to engage with knowledgeable people to remove fear and anxiety and empower them.
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