Women entrepreneurs receive only about 2% of all venture funding, despite owning 38% of US Businesses. According to a 2015 BC insights analysis, Black founders received just 1% of funding provided by VC’s and yet black women founders only receive just 0.2% of venture funding vs. the 97% of their male counterparts.
Inc Magazine created a complete list of VC firms on a mission to change the status quo of investing in women entrepreneurs.
Food for thought when reaching out to an investment firm:
Understand what stage you are at in the business cycle. Most investors, usually invest in certain stages. Early, Seed, Growth.
Show and prove that you don’t just need the funding, but why. Prepare an investor deck that includes details of the funds you’ve personally raised, how and why the funding you’re requesting will help solve your company’s problem.
Have a clear plan on what you will do with the money you raise. Look at it from an investor’s point of view. Imagine raising funds from an investor only to not deliver what you initially promised. Investors invest to make money and want to know that you can provide a return on their investment.
Research the VC firms and the companies they invest in. There is nothing worse than asking for funding from an investor in an area they do not specialize in.
Choose an investment company that is willing to partner with you on growing your company, rather than simply invest. You want to build a working relationship with your investment partners that’s equally beneficial, especially during challenging times within your business.
Here’s the complete list to help you get started with raising funds for your next project