Raising capital #likeagirl
We’re about to embark on raising Sharesies seed round of capital. Seed capital will enable Sharesies to launch our product, build even faster momentum and ultimately enable more people to have access to investing- starting with New Zealanders.
It’s a whole exciting new world
While I’ve got a Masters of Finance and done my fair share of negotiating — I’ve found this hasn’t set me up with the finesse required for capital raising.
So, as with any first-time figuring out something new, I’ve done the ol’ ‘Google’ and sought advice on what it takes to raise a successful seed round.
‘Googling’
Has taught me two things.
1. It’s hard to raise as a women
Investors prefer pitches presented by male entrepreneurs compared with pitches made by female entrepreneurs, even when the content of the pitch is the same.
No joke, though I wish it was 😤! This study by Harvard, the University of Pennsylvania and MIT found:
Males are 40% more likely to be funded — even with the exact same pitch as a women.
And it shows in the amount women are able to raise. Only 12-17% of start-up seed funding goes to a start-up with at least 1 women founder (and we’ve got two!).
2. Female led startups outperform! 🙆
Fast Company published research by Global Leadership that proves:
“Having millennials and women in leadership positions directly correlates with the success of a company.”
So the appetite to seed fund female-led start-ups has got to be growing… at least it should be.
Seeking Advice
I’ve been meeting with females & males who have successfully raised and a bunch of investors to get their opinion on what it will be like for me raising seed capital for Sharesies. Key outtakes are:
It’s going to be bloody tough
Capital, particularly in New Zealand, has moved away from early-stage investing to Series A investing, as investors risk appetite has reduced.
But advisors believe we will smash it! Just may be bit of a journey getting there.
Advice provides connections
Genuinely, people want to help and see us succeed. We’re finding seeking advice is the best way to uncover potential investors as people are so generous with connecting us with their investor network.
Take a man
Investors invest in what they know. I get people do that, but this does impact female entrepreneurs. To the point that, I’ve been advised to take a man with me when meeting potential investors. The train of thought is - as the majority of investors are male, taking a man in the team increases the chance of building credibility quickly. It angers me that this should need to be a tactic (literally blood is boiling 😬).
We have a small team, so a man will likely be at investor meetings but only because they bring the Sharesies know-how, not just becuase they are a man.
All in all, I’ll be raising capital!
I guess I’ll find out if raising as a women might be harder than I anticipated- but I’m up for the challenge! We believe numbers & traction speak louder than anything else which brings me a lot of confidence.
If you’re interested in hearing more, or have advice or connections — please do reach out — brooke@sharesies.co.nz.
Sharesies is making investing easy for everyone. We’re currently building our beta product — if you’re keen to join the waitlist head to our website. And to stay up to date with what we’re up to, follow us on Facebook and Twitter.
