Helena Capital’s Post

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„We ask men to win and women not to lose.“ At Helena Capital Partners we believe there are several factors at play creating the broad gap in VC funding between male and female founding teams. This is a big one and arguably leads to the others, such as female led businesses viewed as higher risk and being funded at lower valuations than their male counterparts with the same or similar business model. While we might not be able to change the hearts and minds of investors, female founders can follow the advice of Amazon Web Services (AWS) Startup Day Women Founders Edition and others to counteract the bias: 🗣️ answer prevention questions with promotion answers 🦄 picture yourself - and then promote yourself - as leading a future unicorn. No one else is going to do that for you. 📈 when you land on a valuation that feels reasonable to you, bump it up a couple of basis points and get objective feedback from someone that is not on - or planning to be on - your cap table. Follow us and reach out to learn more 🚀 #redefiningVC #femalefounders #womeninVC Thank you Victoria Gassmann for highlighting this insightful study by Laura Huang, Dana Kanze and colleagues: https://lnkd.in/dRiHxj8a

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Strategist, Feminist, Founder @ Phoenix Brand Consultancy

It might come as a shock, but a major reason female founders receive significantly less funding than male founders is simply the type of questions they’re asked during pitches 😱     Last year, I attended AWS’ “Pitching Better” workshop, which aimed to help female founders overcome gender bias in #fundraising. Professor Laura Huang's research from Harvard Business School revealed that female founders are asked starkly different questions in Q&A sessions with VCs than their male counterparts. 📍 Female founders are asked 66% prevention questions. These questions focus on potential risks and losses, emphasizing everything that could go wrong with the venture. 📍 In contrast, male founders are asked 67% promotion questions. These questions focus on growth potential and gains, emphasizing everything that could go right with the venture. For example, male founders are asked, “How will you acquire more customers?” while #femalefounders are asked, “How will you retain your existing customers?” This approach unfairly associates women with losses and men with gains. Naturally, entrepreneurs’ responses correspond to the questions they are asked. Prevention questions elicit prevention answers, while promotion questions elicit promotion answers. This automatically puts female entrepreneurs at a disadvantage. They can only demonstrate how they won’t lose investors’ money due to the prevention-oriented dialogue, while male founders get to showcase their startup’s potential for success and maximize investor gains with the promotion-oriented dialogue.  With such prevalent #genderbias, is it any wonder women receive less funding than men? However, there’s a silver lining to the study. 💡 It shows that entrepreneurs who switch focus by responding to prevention questions with promotion answers raise significantly more funding than those who stick to prevention answers. 📌 As a female founder fundraising, here’s what you can do: 1. Identify if you’re being asked prevention questions. 2. Frame your responses as promotion answers. I know it feels unfair to have to adapt when you’re the one facing discrimination. It’s like teaching daughters to defend themselves instead of teaching sons to treat women right. Ideally, investors should recognize and eliminate these unconscious biases and treat entrepreneurs fairly. Unfortunately, this won’t happen overnight. Until then, as a female founder, learning to overcome these unconscious biases is critical for your startup’s survival and growth. For the investors reading this, you have the opportunity to level the playing field by approaching Q&As fairly and ensuring deserving startups get the funding they need to grow and thrive 🌈

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Victoria Gassmann

Strategist, Feminist, Founder @ Phoenix Brand Consultancy

2w

Thanks for sharing!

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