Female founders say it’s a great time for women to be in business

According to a report by Gusto, a payroll, benefits and human resources platform, the number of women starting businesses has increased in recent years, accounting for nearly half of all new entrepreneurs.

According to the report, in 2020, women made up 47% of new business owners, up from 29% in 2019. This number remained close to that level at 49% in 2021 and 47% in 2022, indicating a stable trend rather than a temporary spike, the report said.

Still, there is no doubt that a funding gap exists. According to a report from PitchBook, only 2.1% of U.S. venture capital investments in 2022 went to companies founded entirely by women.

Although the entrepreneurial world has become more supportive of women-led businesses in recent years, female founders still face discrimination in raising capital, Olivia Coates James told CNBC. Coates-James founded menstrual health startup Luüna and was included in Forbes’ 2021 Asia’s 30 Under 30 list.

“I could point out many instances of being asked questions during the pitching process that I knew my male counterparts wouldn’t be asked, or gender-based hurdles. But to tell you the truth, my From a perspective, it’s often or now a little bit different,” she said.

Coates-James said that as her company was able to demonstrate a compelling vision and good growth, it became easier to raise funding over time. Now, Ruuna has supporters of all genders, she added.

Zorin also pointed out that “a lot has changed in the last eight years…as people have invested in programs and awareness…and now investors are expected to invest in women-led startups.” .

According to a report by Biz2Credit, an online funding platform for small and medium-sized businesses, the funding rate for women-owned businesses will rise to 41% in 2022, slightly higher than the 37% for men-owned businesses.

The glass ceiling may be thinning, but there is still room for improvement.

According to a report from Biz2Credit, the average amount of funding for women-owned businesses in 2022 is $55,898, still significantly lower than the average amount raised by men-owned businesses of $93,976.

“In some cases, we feel that ‘supporting women’ or ‘supporting female founders’ has been a trend for the past few years, and that can provide opportunities. [but] It also allows us to skim through the deep-seated issues at hand,” Coates-James emphasized.

Cortez-James said female founders still face the misconception that they are not good at building companies.

“There is a false belief that we are less ambitious and less keen on achieving commercial success, but that is absolutely false. I know that to be the case. ” she said.

The UBS report found that even though women and men made similar pitches, investors still favored male-led startups. The report notes that investors may perceive male entrepreneurs to be more capable because the majority of startup CEOs are white men.

Cortez James, founder of a menstrual startup, said she doesn’t expect personal opinions to override data during the pitching process.

Sometimes, if an investor’ or someone you ask within their circle (if it’s a man) says, [because] There was no way they would try our product, and their personal opinion allowed them to erase all the data and evidence we had. I think this speaks to the very personal stigma that people probably have,” Coates said. – said James.

However, despite the challenges, Coats-James’ Luna was able to raise over $1.5 million in two rounds of seed funding. Ruuna has since worked with companies including UBS, Goldman Sachs and Morgan Stanley to provide free menstrual products in women’s restrooms, paid for by the organization, just like toilet paper, Coates said. James told CNBC.

Beyond gender, Zorin said age and inexperience were the “biggest obstacles.”

“Especially if you’re dealing with more corporate clients, you tend to have more senior management…the less experience you have, the more easily you can be taken advantage of,” she said.

Zorin emphasized the importance of taking a holistic view and not relying solely on one leader. Nora Technologies is expected to raise A$200,000 ($136,200) in pre-seed investment within three years and reach positive cash flow by March 2024, Zorin told CNBC. .

Don’t be afraid to stand up for what you believe in, Coates-James said.

“Every woman I know in my network is equally willing to lend a hand… [and] “Fighting for the business, fighting for the dream, fighting for the mission…sometimes it’s hard to get our voices heard and it can become exhausting over time,” she said. Ta.

Starting a business isn’t easy, but Zorin advises that finding a cause you’re passionate about and understanding your customers will help you move forward.

Sophie Chapman, honoree of the 2023 Forbes Asia 30 Under 30 list, says her biggest advice to young women is that even if you’re not completely convinced that you can excel right away, He also said it’s about embracing opportunities.

Chapman, co-founder of Hong Kong-based Ecobrix, a startup that turns plastic waste into construction materials, says confidence can make or break an investment deal.

“It’s the ability to project confidence in yourself and confidence to execute your plan, because that’s what VCs are supporting you with,” Chapman said.

When you’re just starting out, it can be difficult to distinguish between good and bad opportunities, but learning how to say no is a powerful thing, Coats-James added.

“I have experience saying no to investors. Investors understand that short-term returns on capital come with long-term costs, but saying no in such cases is… “It’s not easy, especially when you’re just starting out investing. But it’s really, really important to say no,” she said.

She said no matter how big the short-term gains may seem, it’s always important to value your time and focus on your long-term goals.