Seeking out authentic connections can help female founders land more investments

Raising venture capital is hard for anyone, but female founders face even more barriers to funding. 

However, women can prepare themselves by doing their research and staying authentic to themselves and their company, panelists said during a female founders event hosted by Keiretsu Forum MST and Pennovation Works last week. Securing funding is about finding the right partners who believe in you, understand your vision and will guide you while you build a business, they said. 

“Find a group that gets excited about what you’re doing and doesn’t want to change your core,” Maureen Mulvihill, founder of medical device company Actuated Medical, said. 

Being genuine can build trust that leads to more successful pitches and, ultimately, money raised, panelists said. That’s especially important in a climate where women are taking home less capital compared to men. 

Companies founded solely by women only received 2% of capital invested in 2024, according to PitchBook. Funding at the late stage VC and growth stages is looking up, according to PitchBook’s 2024 Female Founders in the VC Ecosystem report, but early-stage funding declined over the last year. 

“You guys have to be authentic to who you are and what you’re doing and people can smell fakeness a mile away,” Mical Jeanlys-White, founder of financial planning platform Wealthmore, said. 

Diversify your investment sources and find VCs who get you

The key to building a successful, sustainable company is seeking diverse investment sources that respect their vision, panelists said. 

Some investors may push for changes in executive leadership, and while that can sometimes be beneficial, sometimes it compromises the core of the company, Ellen Weber, executive director of VC firms Robin Hood Ventures and Mid-Atlantic Diamond Ventures, said. 

“I see over and over again, too many times where women cede control, they get advice from someone which says you shouldn’t be the CEO, and you need to bring in a silver-haired guy,” she said. “That’s not always right, and sometimes it does a real disservice to the company.” 

Many investors are only looking to invest in companies that fit the pattern of what they already know works, Jeanlys-White said. If they’ve never invested in a company or founder similar to you, it’s likely it won’t work out. 

“You’re going up against this pattern. But the good news is there are other investors out there who don’t subscribe to that,” she said. “Go find your tribe.” 

Plus, mindsets have changed in the investor community. Weber pointed to a shift over the past 25 years, noting that firms like hers are increasingly diverse and open-minded. Finding the right investors, those who truly understand and respect your vision, is crucial for success.

“It’s just as important that you like your investors and your investors like you,” Weber said.

When pitching, lead with impact and investor benefit

While the landscape for female entrepreneurs still isn’t equal, there are ways that founders can prepare to put their best foot forward. 

Strong entrepreneurs deliver pitches with passion and energy, Weber said. It’s also important to lead with the impact the company will have and how investors will benefit from it, Louise Yochee Klein, principal at leadership development org Courage Growth Partners, said. 

Similarly, Mellie Chow, venture partner at investment fund Archangel Axion Fund, looks for founders who can tell a compelling story and explains why they are well-suited to address the problem their company is trying to solve. 

“Ask for advice, not for money, because when you ask for money, you get advice,” Chow said. Leading with curiosity opens doors to a deeper dialogue with investors, who are often more willing to share guidance than cash at first, she said.

From a founder perspective, entrepreneurs should also research the firm and the people they’re pitching to before they meet them, Jeanlys-White said. By understanding an investor’s background, founders can better align their pitches to attract the right type of funding.

“[I] find out as much about that person before I get in the room, have a sense for what excites them, the last deal they did, why they cared about the deal,” Jeanlys-White said, “so that I can play a role in sparking that excitement.”