Female founders talk of the stigma in the venture capital industry | FT Report

Female founders in the UK get far less venture capital than all-male teams, according to recent research for the UK Treasury. FT enterprise editor speaks to start-ups, the British Business Bank and a venture capital investor to find out why and how to get more VC funding. Read more at

Wouldn’t you see if i know is a female founder who set up and runs seraphine the maternity fashion wear company against the odds she has secured backing for a venture capital firm less than one pence in every pound of venture capital or vc money in the uk goes to female founders almost all of its eighty nine pence goes to all-male teams according to a recent

Report for the uk treasury venture capital is money invested in a young business to help it grow and return for a stake without this kind of investment female founders could find it hard to grow the global businesses of tomorrow the venture capital industry is led by men as a woman you do feel quite isolated you very rarely have in the boardroom anybody female

Attending those presentations it was very intimidating you know i felt obviously different as a woman i felt like there is a lot of key words and key terms there you know you’re not used to you know they ask your ton of financial questions there you know you feel that you are quite grilled the report shows a clear imbalance while female founders get less than

1% of vc funding they make 5% of the pitches for venture capital money in stark contrast all male teams succeed in securing nearly 90% of the vc funding based on making 75 percent of the pitches the report came from the british business bank a state-owned development bank dedicated to making finance markets work better for smaller businesses unless you wagner

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Was one of the authors the way venture capital works is positively medieval right it comes down to who you know and who’s in your network and because of historical reasons even in 2019 women are less likely to be in the types of networks that allows them to get the warm introduction which results in a 13 plus times better a chance of getting access to venture

Capital at the end of the day many venture capitalists blame this problem on society rather than their own industry peter sugarman and investor in financial services wrote the ft about the report arguing the real reason female founders get less venture capital money is because investors favor tech startups these are usually begun by science maths and technology

Graduates and they’re overwhelmingly male in order to get funded investors like ourselves want to feel that the founder teams have not only the technical expertise but have the business expertise and if there are more experienced people who are men many more experienced people other men currently then there will typically be an over-representation of men amongst

Founder teams one way female founders like hillary rowland founder of boom cycle have overcome this problem is through crowdfunding individuals can invest in startups through online platforms such as cedars and crowd cube crowd coups is a third of the companies that raise money have at least one female owner hillarie ronan raised nearly a million pounds last year

For a boom cycle spin fitness studios using crowd came but she is optimistic about pitching to vcs to fund future expansion well we had a lot of requests actually from our riders to you know become bigger parts of the boom cycle story and we were comfortable with that great responsibility that comes with taking savings of your riders and of your customers do you

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Think there is an issue with male dominance in the vc industry i will say that as a woman i’ve never had a door shut in my face i’ve had many good meetings go on and also even though there are mainly men look around these tables at these meetings i feel like i’m always listened to for sure but the numbers speak for themselves and the gap between female and male

Founders getting venture capital is clearly a large one all four of our contributors had advice on how to close this funding gap if you can find a mentor of somebody who has done this journey that’s obviously amazing build you network infiltrate this network of investors of advisor early in the cycle the venture capital industry needs to make changes to itself

To get more venture capital to female founders that means getting involved saying that it’s important measuring it and then holding them to it themselves to account i don’t think you can legislate for equality of result but you should certainly have the opportunity to present and and make your case just know your business inside and out just like you would if

You were a man or anybody looking for investment and don’t stop until you get what you want the uk treasury report identified many barriers the vast majority of investment professionals and men who appear to favor their own sex the lack of women in senior corporate roles means those who do start businesses are less experienced and therefore seen as riskier to

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Invest in break the government’s first step is to set up a voluntary register for investors to publish the gender split of their investments and there is emerging evidence that all female and mixed are top teams produced better returns than all male ones on average once the venture capital industry realizes that it has a powerful incentive to fix the problem

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Female founders talk of the stigma in the venture capital industry | FT Report By Financial Times

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