by Krystal Covington
For startups, gaining the capital to scale through hiring great talent, investing in marketing, and revving up development efforts can be the difference between a 3-year stint or becoming the next Uber.
Equity funding has been instrumental in helping many great companies succeed in their growth efforts because it offers owners an influx of cash to invest in the business in exchange for ownership rather than a debt + interest relationship. This means the investors financing the business get paid only if the company does well, so they have an interest in the company's success and often play a supportive role in helping that company success.
Today, men receive about 9 times more equity funding than women do, which means they are more likely to get the cash they need to scale a business and reach a high level of financial success.
In honor of our upcoming Denver Startup Week Panel event we asked our panelists to share what they think was their #1 key to there success. Here's what they shared.
Jaclyn Fu, Co-Founder and CEO of Pepper (Currently closing her pre-seed round) - Being passionate and infectious with our mission.
Amy Baglan, CEO & Founder of MeetMindful ($8mm) - My commitment to authentic communication, no matter who I’m talking to.
Jennifer McMillen, Co-Founder of Tripcents ($550k) - Honesty - in all aspects - being honest with myself when something's not working, being honest with celebrating both the small and big wins even when others have doubts, and most of all, being honest with my co-founders and team by making transparency a priority
Investors on our panel also shared their insights on how women can start earning a greater share of the capital.
Emily Winslow, CEO of Peak Impact Consulting (Investor) - Female-founded and led companies are more capital efficient and in the long term have more success with less capital. Women tend to be more conservative than men in their “ask," seeking only as much financing as they currently need. Such restraint has pros and cons for both individual female-run businesses and for the investment ecosystem. As women continue to build good businesses for their customers and employees while achieving high returns on investment, more capital will be attracted to their ventures. Moreover, when over $30 trillion is conveyed during coming years to women and millennials in “the great wealth transfer,” our current economic system will experience a dramatic shake-up, resulting in women investors gaining the capacity to direct more capital towards female entrepreneurs.
Heather Mackenzie, SheEO U.S. Launch Team (Investor) - I think one way is networking - strategically, not just a shotgun blast approach, or throwing noodles at the wall and seeing what sticks - but truly learning about the networks they wish to enter, finding allies in them and strategically building alliances. I firmly believe we need good men in the mix to help build those bridges to the men who just don't get it - so finding male allies with strong connections into investor networks is one way, and of course I believe in the power of women too, so start looking at all the female VC networks popping up
To hear from these women in person, visit our upcoming Denver Startup Week Panel on Thursday, September 27 from 4-5 p.m. at Capital One Cafe (1550 Wewatta Street) Register online here.