Female entrepreneurs ‘should harness the power of networks to close gender funding gap’

Treleaven was commenting after Beauhurst data, published in a new report by the Female Founders Forum – a project co-created by The Entrepreneurs Network and Barclays – revealed that just 3.5% of equity investment for the first half of 2023 went to female-led businesses.

“This new report shines a light on the gender funding gap that exists – in this specific case, in respect of female entrepreneurs, but the challenges in raising capital also extend equally to female-focused businesses,” Treleaven said.

“All entrepreneurs and businesses face challenges in gaining exposure for their product or service, and getting in front of the right audience to communicate why it is needed and what the market for it is. However, these challenges are exacerbated for female entrepreneurs and female-focused businesses, who continue to face bias and prejudice,” she said.

“The good news is that there are things that can be done to navigate this market – first, by ensuring there is clarity around target market, necessity for the product, market trends, and the values key to the business; and second, by making meaningful connections with people who are part of the industry community and want to contribute to adding value to the businesses of their contemporaries,” she said.

Pinsent Masons recently hosted the second in a series of events bringing together influential women working in private equity. The event, co-hosted by Monica Vinader, featured a discussion chaired by Pinsent Masons board member Suzanne Baxter, with panellists Emily Bendall, founder of lingerie brand, Bluebella, Jacqueline Windsor, head of retail (UK) at PwC, and Tina Warner-Keough, co-founder of gin brand, Warner’s.

The value of networks was highlighted in the report by the Female Founders Forum. It said: “No successful entrepreneur got to where they are by operating in isolation. While they might have been the brains and determination behind their businesses, lots won’t be in the position they are today without an equally talented co-founder, an experienced mentor, a particular investor, or a strong team.”

Treleaven said the panel honed in on the power of making connections with other women and women-focused businesses, which builds on the messaging from the inaugural event in the Pinsent Masons-backed series held at The Fold where the value of collaborations was discussed.

“There are pre-existing networks that can be plugged into – like the Buy Women Built (BWB) platform, which is an amazing community that promotes female founders and their brands,” Treleaven said. “Similarly, there are female-focused funds and angel networks that women can work with – Addidi is an example of a wealth advisory service that focuses particularly on supporting women.”

“Female entrepreneurs and female-focused businesses could also consider setting up their own networks and reaching out directly to individuals they admire. Seeking a mentor – someone who understands you as a person and what you are trying to achieve with your business – is another option for obtaining valuable advice and building networks. Mentors do not need to be women – often the best mentors come from a completely different background, bringing diversity of thought. Obtaining buy-in from men can be particularly valuable in helping to move the needle in closing the gender funding gap,” Treleaven said.

“There is no single solution to building brand awareness,” she said. “In some cases, tapping into the existing world of influencer marketing can help products to land with the target audience, and in turn help attract fresh investment. In other cases, it may be effective to lean into a particular feature of the product or business – such as, if relevant, its sustainability credentials, or its appeal to certain age groups – and target multichannel marketing activities in those areas.”

Alongside building networks and engaging in marketing, female entrepreneurs and female-focused businesses need to be ‘deal ready’ if investment is the goal in the near future, Treleaven said.

“It is vital founders understand the investment market in which they are operating: who the key players are in their sector; where competitors are going for capital; and what kind of investor will be most beneficial – whether it is simply someone who is able to offer financial support, or whether additional experience in, for example, expanding into new jurisdictions and product lines or building out management teams would also be useful,” Treleaven said.

“Once there is a foot in the door, it’s time to make an impression. Prospective investors will want to understand the business plan, projections for growth, and crunch the numbers to get a handle on the likely return on investment. Being able to demonstrate knowledge of the brand and customer market via robust research can also help impress investors and set out a clear understanding for them of how female entrepreneurs and female-focused businesses intend to develop their products and business as the market, technology and trends evolve,” she said.