According to Harvard Business Review, women founders received only 2.3 percent percent of all venture capital funding in 2020. To put that in perspective, 2.3 percent equates to roughly $3.7 billion that went to women, as opposed to the $160 billion that male founders received. This isn’t all that surprising when you consider that only 12 percent of decision makers within venture capital firms are women. But the paradigm is shifting, and we’ve tapped an angel investor to learn her secrets.

In honor of Women-Led Wednesday, we sat down with a woman who understands this funding problem and has dedicated the last few years of her career to shifting the narrative. Kate Delhagen is the founder of Oregon Sports Angels, which helps early-stage sport and outdoor brands launch, grow, and thrive. We asked Delhagen to demystify the fundraising process and talk about why she prefers to invest in women-led companies.

Why is it so important to you to support women-led companies?

Here are two great reasons. First, in the last several years, there’s been no shortage of data that illustrates that companies with diverse leadership teams are more successful. This applies to gender first and foremost, but also to racial diversity. For example, my own angel portfolio currently includes investments in around 20 companies, about 60 percent of them led by women. Since I started angel investing about five years ago, only two of these companies have gone under, and both of them happen to have been male led. While this isn’t everyone’s experience, as an investor, this trend will be on my mind as I evaluate future opportunities. Second, I want to help in a small way to shift the way financial independence and personal wealth are created in our country. If a female founder is very successful, she will become financially independent and will be likely to reinvest her wealth in her community.

How is the fundraising process different for women founders?

We still hear many cases of women being asked different questions than men around the deal table, such as “How do you plan to mitigate risk?” or “How will you balance your personal life?” So, here’s my advice to women founders: lead with confidence and be prepared to head off some of the undoubtedly offensive questions you may be asked. Embrace your authority and be clear about your plans for growing your business, so you don’t get stuck talking about how you will be able to juggle being a mom while running a business.Ěý

What’s the No. 1 piece of advice you’d give to founders seeking outside funding?

Do your homework! Know exactly what type of capital you’re looking for: social, intellectual, and/or financial. Social capital comes from the power of the funder’s network, the introductions and connections they can make. Intellectual capital is outside expertise, such as help structuring a business plan, an introduction to a factory, or critical feedback on financials. Then there’s financial capital—cash.

Founders also need to understand the difference between dilutive capital (equity you trade for cash) and non-dilutive capital (bank loans, grants, crowdfunding, etc.) and know what type of capital is right for them. Non-dilutive is typically better for a business just starting out, as it allows you to retain 100 percent ownership of your business. Dilutive capital makes more sense when you’ve started to gain traction and thus can justify a higher valuation.Ěý

Once you know what type of funding you want, how do you prepare for the big ask?

Get your business resources dialed. The last thing you want is for a potential investor to take an interest in your business, ask to review your financials, and then have to wait a week or two while you gather the right materials. Here’s a checklist of what you need.

• Pitch deck 
• Executive summary
• Financials, including three-year profit and loss (P&L) projections
• A funding instrument and terms. The most common types of instruments for early stage companies are a S.A.F.E. (simple agreement for future equity), a convertible note, or a priced round of series seed equity.Ěý
• A timeline indicating when you expect to close a fundraising effort and key milestones the funding will support

What’s the best way to find money to fund your business?

Depending on whether you’re seeking dilutive or non-dilutive capital, there are many different ways. For non-dilutive, look into pitch competitions, grant programs, bank loans, self-funding, and crowdfunding.

For dilutive capital, it very much so depends on your stage. For early stage businesses (pre-seed and seed) your best bet is to look to friends and family, angel investors and networks, and seed-stage VC funds. But depending on how far along you are, be prepared to give up significant ownership (10 to 20 percent with each round) of your business if you go this route.

What is the best approach for founders reaching out for the first time?

A warm introduction is always the best way to make a connection, which is why you may want to start with seeking social and intellectual capital. The stronger your network, the more warm introductions you may be able to secure.Ěý

Whether you have access to the right network or not, homework is key. Be aware of who’s investing in your sector and your stage. Build a short list of five, ten, or 20 investors to start your outreach. A major investor turn off is when a founder doesn’t come prepared to the discussion. If a potential investor asks, for example,“What are the terms of your S.A.F.E. note?” and your response is, “Let me ask my lawyer (or male co-founder or advisor) and get back to you,” that is not a good starting point. Understand how the instrument works. Also consider the impact to your cap table in the short and long terms. If you’re unclear on what that means, I’d recommend taking a course or attending a fund-raising session from organizations like the Female Founders Alliance.Ěý

Once you’re ready to reach out, be clear and concise with your email subject line. Be prepared to work around the investor’s schedule and don’t waste anyone’s time. Once you’ve built a positive relationship with an angel or other investor, whether they invest or not, ask them, “What can I do to be better prepared next time?”

What are key differences you’ve seen when investing in male-led versus woman-led businesses?

There are a few, but one that I definitely notice is the concept of reciprocity. In my experience, women tend to offer help in return when asking for favors. One of the characteristics of a good founder (or human) is that they understand that the more you give, the more you get. Keep that up and mean it. You won’t always be taken up on the offer to help, but it goes a long way.

In addition, I believe that many women and especially those who have overcome other obstacles, such as working moms or those without white privilege, have additional strengths, like efficiency, scrappiness, resourcefulness, comfort with accepting defeat, and the ability to wake up the next day and try again. These strengths are critical when starting a business.

REI recently announced a new project that will give $30 million to BIPOC-led outdoor startups. Are you starting to see more money earmarked for underrepresented founders, or is it still a rarity? Are there other types of programs you’d recommend founders check out?

With the recent spotlight on this huge funding gap for female and BIPOC founders across all sectors, the good news is that there’s a growing number of investors (and programs) looking specifically at funding and supporting female and BIPOC founders. I guess I’m an example of that as the founder and president of an angel network with a strong focus on finding breakout minority founders. The groundswell to back women and other minority founders is real, and that gives me the confidence to tell women that there are more options than ever before.

When looking into programs like REI’s, you should understand the difference between incubators and accelerators. Incubators are great opportunities for founders who are really just starting out with an idea and need help determining how best to get to launch. Accelerators, on the other hand, are typically programs for companies who are a couple years in, with proven traction and revenue.

In addition to REI’s exciting new program, keep an eye out for VF Corp’s new program focused on early-stage outdoor tech and women-specific launch programs like the one recently introduced by the nonprofit Ladies Who Launch. For brands further along, consider the Tory Burch Foundation fellows program.Ěý

Any final advice?

Build a network of other founders. Fellow founders are some of the best resources to help overcome any and all problems you encounter. When you meet other founders, be prepared to offer more help than you ask for. Reciprocity continues to be key.Ěý

Finally, find excellent advisors—however informal—early. This gives investors confidence that you’re not in it alone and that you have a network of experienced individuals to support you. It will force you to be accountable to outsiders and train you to run effective “board meetings.” Those dividends will pay off in the long run.

The post Secrets from an Angel Investor: How to Get Your Women-Led Outdoor Startup Funded appeared first on şÚÁĎłÔąĎÍř Online.

This is pretty insane and worth pondering: last year there were more CEOs of S&P 500 companies named “Michael” or “James” than women of any name. Which is precisely why I started Women-Led Wednesday (WLW). November 24, 2021, marks the fourth annual WLW, an annual shopping holiday that occurs the day before U.S. Thanksgiving designed to support women (and women-identifying individuals) in leadership.Ěý

I am the founder of Wild Rye, a women’s outdoor apparel company. I started Women-Led Wednesday just over three years ago when I was at a loss about how to launch our holiday sales program at Wild Rye.Ěý

Black Friday seemed way too consumption-driven (plus we all should #optoutside). Small Business Saturday felt more oriented toward brick-and-mortar businesses. And Cyber Monday felt like a great way to get lost in the war of ad dollars. I thought, with all the talk of getting more women into C-Suites and on Fortune 500 boards, there must already be a holiday to promote sales of women-led brands. To my surprise, there wasn’t.Ěý

So, with my arsenal of accumulated email addresses, the power of social media, and a Squarespace website, the first annual Women-Led Wednesday was born. Since that day, the Women-Led Wednesday initiative has grown into an annual event and a robust brand directory of close to 500 women-led brands. Every year we welcome countless new additions to the directory and we all come together to lift each other up by promoting the holiday, encouraging our customers to shop consciously and vote for women in leadership with their purchasing power.Ěý

With women receiving just over 2 percent of all venture capital, finding alternate sources of funding is supremely important. This is where Women-Led Wednesday and encouraging the public to shop with intention comes in. The initiative was built around the aphorism that “a rising tide lifts all boats” and this definitely rings true with women supporting women.Ěý

Research shows women are more likely to a) hire other women, and b) be hands-on with their direct reports, bringing them up with them through the corporate ladder. So, if we are to create a more balanced economic landscape, we need to support the women who are already in leadership positions. While I probably can’t attribute it all to Women-Led Wednesday, in the last year alone here at Wild Rye I have been able to hire five women full-time and countless female freelancers. I can confidently say it’s not due to an influx of venture funding, but rather sales revenue.

How to Support Women-Led Wednesday

There are currently 500+ women-led brands in our directory. Below is a snapshot of a few of them. On November 24, 2021, as you kick off your holiday shopping, please consider supporting them.

• Title Nine is the OG women’s athletic wear retailer. Founded in 1989 by Missy Park, Title Nine is dedicated to offering women a great selection of women’s active apparel in addition to elevating other women business-leaders.
• Carve Designs is a women’s lifestyle and swimwear brand. Carve is dedicated to celebrating women actively living our best lives, encouraging confidence in the curves of our bodies, and understanding of the needs of our diverse community.
• Dovetail Workwear is a women’s workwear brand wear-tested by thousands of working women, from farmers to carpenters to scientists in Antarctica. Through the creation of high-quality apparel, Dovetail Workwear provides tools that support women’s jobs and lives.
• Wild Rye is a women’s outdoor apparel brand specializing in mountain bike and snowsports that’s dedicated to crafting pieces that are both beautiful and technical in equal measure. Wild Rye strives to inspire confidence and welcome more women into the outdoors.Ěý
• Skida Headwear & Accessories is a proud Vermont-based company that produces playful and technical accessories and headwear. The brand is committed to local production, limited edition products, and a fresh perspective.Ěý
• Coalition Snow is a women-owned and operated ski and snowboard company. The brand is dedicated to building the gear and the communities that unleash skills and expand experiences. The brand and its leaders are committed to standing up for what matters and aims to make a positive impact in the world of snowsports and beyond.

If you’re a women-led brand and would like to join the initiative, please start by creating a free account and completing a brand directory page. If you want to support in another way, please share with your network, follow @womenledwednesday on Instagram, or reach out to me directly. Most important, make a point to shop women-led.

Cassie Abel is the founder and CEO of Wild Rye, a women’s apparel company based in Idaho.

The post Opinion: We Need More Women-Led Outdoor Companies appeared first on şÚÁĎłÔąĎÍř Online.