A couple of years in the past, Shark Tank host Kevin O’Leary mentioned the women-led corporations in his funding portfolio have been out-performing men-led corporations.
As each a feminine entrepreneur, in addition to an angel investor who predominantly invests in women-led startups, I can let you know that one of many greatest causes ladies resolve to begin corporations isn’t out of alternative, however necessity. Both they’ve distinctive publicity to an issue in society the place there isn’t any available resolution, or they did not have entry to the suitable profession alternatives and turned to entrepreneurship to offer for themselves and their households.
Even though ladies nonetheless obtain disproportionately much less funding than males, I firmly consider there has by no means been a greater time in historical past to change into a feminine entrepreneur. We nonetheless have an extended technique to go, however alternatives are nonetheless plentiful immediately.
Here is why I like investing in feminine founders, and why 2021 is a terrific time to construct a enterprise:
1. Feminine founders deliver a distinct perspective to enterprise issues.
I consider one of many elementary causes ladies obtain much less funding than males is as a result of a lot of the funding world is run by men–meaning they solely spend money on companies that clear up issues they perceive.
For instance, once we have been elevating cash for ThirdLove, we had dozens of conferences with male buyers who had a tough time understanding the issue we noticed out there. “Only a few ladies look, and even wish to appear like a Victoria’s Secret mannequin,” and “Girls truly do not wish to should go to a retailer to attempt on a bra” we instructed them. As a girl, this made good sense–but for lots of males, they struggled to see the world by means of that new lens. Some did although, and so they grew to become our buyers.
As a girl, you see the world otherwise simply due to who you’re and the experiences you’ve got had up till this level. Which implies, for those who assume you see an unmet want on this planet, or you’ve gotten private expertise with an issue and have created a compelling resolution, it’s best to belief your instinct and go for it.
2. Feminine founders strategy constructing corporations in several methods.
Particularly if you’re constructing a female-oriented firm, 9 occasions out of ten, it is higher for a girl to be main, evangelizing, and advertising and marketing that firm.
For instance, Bumble (the relationship app) simply went public. And Whitney Wolfe Herd, who’s the founder, grew to become the youngest girl to take an organization public. For context, out of 442 different corporations, solely her and three different ladies took their corporations public in 2020.
Now, may a person have constructed Bumble? Nicely, one did. It was referred to as Tinder, the place Whitney Wolfe Herd was an early govt earlier than leaving to begin Bumble. Why did she go away one of many fastest-growing, most profitable relationship corporations in historical past to begin her personal? As a result of Tinder wasn’t serving ladies in the best way she believed was necessary.
And now, she’s a billionaire.
3. Feminine founders have help teams and assets that did not exist ten years in the past.
We began ThirdLove in 2013.
Again then, there have been no female-oriented entrepreneurship communities, or co-working areas, or networks. Actually, being a feminine entrepreneur ten years in the past was nearly unprecedented (and much more uncommon ten years earlier than that). However immediately, and particularly by means of social media, there’s an abundance of assets for girls seeking to begin their very own enterprise.
All of this has created an amazing quantity of momentum, ardour, and sure, cash on the market seeking to help feminine founders. To be candid, for those who’re a white male founder, you’ve gotten had sure advantages that feminine founders do not have but in society–which is why many of those applications are completely for girls. And because of this, the ability of female-led communities is immense. Girls wish to assist different ladies.
So, in case you are a feminine founder, I encourage you to place your self on the market, meet different ladies entrepreneurs, discover a supportive group, and get to work.