Female entrepreneurs have a tough time raising funds. In 2020 women-led startups received just 2.3% of venture capital funding. And in 2021, research from the European Investment Bank revealed that female entrepreneurs secured only 1% of venture capital investment.
This is why Faace, the multi award-winning skincare brand, is launching its first crowdfunding campaign via Seedrs this December.
“Crowdfunding doesn’t just help address investing inequity; it also helps even the odds for female founders. Female entrepreneurs are typically less likely than men to get investment for their ventures, however female-led campaigns on crowdfunding platforms were found to be 32% more successful at reaching their funding target than male-led campaigns”, says Jasmine Wicks-Stephens, founder of UK-based beauty startup available in 23 countries.
“We’ve been inspired by fellow female-led brands in the ethical beauty and fem-care spaces like DAME and Upcircle who have experienced great success with overfunded crowdfunding campaigns and so we are excited to now invite everyone to share in our future successes as well, with investments starting from just £11”.
To date, Faace has been largely self-funded, with investment from angel investors and a £150,000 investment awarded from the SFC Capital x The Red Tree beauty accelerator as part of a year-long collaborative partnership to help accelerate growth. Now the business is looking to raise upwards of £150K via crowdfunding platform Seedrs.
“We’re really excited to offer shares in our business and build a larger team of cheerleaders who can support our growth and potentially benefit from it in the future”, says Jasmine, who will be expanding her brand into new countries and retail spaces, including Selfridges and Zalando.
Here the entrepreneur shares tips on how female founders can fund their businesses:
Confidence is key
When pitching for investment female founders have been found to be notoriously more conservative in their revenue forecast than men, which can result in a “thanks but no thanks” from potential investors. It’s really important to be confident in yourself and your business, and while you don’t want to swing the other way and over promise on sales projections, don’t underestimate your trajectory either.
Shout about your business
Don’t be shy about your accomplishments and don’t look at shouting about your business as bragging or sharing goals as ‘desperate’ – it’s not. You’d be surprised by how many opportunities can come your way just by sharing with your network what you’re up to. LinkedIn is a really useful (and often underutilised) platform when it comes to sharing about your business – namely because you’re getting the right eyes on your posts, i.e., people in your industry who can help the growth of your business.
Network with other founders
Build a network of founders and consider them your teammates rather than rivals – even those you’re in direct competition with. Share your experiences and help people out when you can – you’ll discover that as founders you go through similar challenges, and it can be invaluable to get advice and support from one another – remember there is room for everyone!