What should female entrepreneurs do about VCs?

For women entrepreneurs who want to raise money, there are few opportunities. A recent survey by Babson College, Babson Eton, shows that if a VC company has a female partner, it is three times times more likely to invest in a female CEO than a purely male-dominated firm. However, the percentage of women in VCs is falling, from 10% in 1999 to 6%. At the same time, only 2.7% of the companies that have invested in the venture are headed by female CEOs.

So how do women entrepreneurs deal with this environment?

If you are Emily Wess, you may be stride by the refusal of the VCs. A 29-year-old beauty blog into the Gloss founder recently received 8.4 million dollars in funding, and she plans to use the money to expand her new skincare series Glossier. "I'm not afraid of people saying ' no ' to me. "When it comes to sharing experiences on how to get millions of of investments," she says, "It's important to know what the money is and what's best for you." ”

If rejected by investors, Wess not only will not be discouraged, but will actively ask the other side to provide feedback, to try to explain their business plans again. "Many VCs value the business model. "But a lot of men sitting across from me may not even know the difference between the makeup and the creams." "In the face of these male vcs who are ignorant about beauty, Wess the focus on his success-her blog has 8.5 million visits a month, and she also describes what market demand her company is targeting in the beauty market worth 454 billion of dollars. "Your job is to make your ideas sound appealing," he said. Wess concludes.

Before the latest round of successful fundraising, Wess found a trustworthy investor, Forerunner Ventures of the e-commerce venture company. As we all know, the company helped set up a number of highly successful electric companies, such as the glasses company Warby Parker and beauty company Birchbox, Green's company also provided seed money into the gloss. "Milton digs deep into the problem, because she is also a consumer of these products." Wess said, "I can feel her faith, I know when we talk about cooperation, both for her and for me, it is very meaningful." "Wess also contacted Thrive capital by Green, which led the latest round of funding into the gloss.

Hadley Mullin, a partner at private-equity firm TSG Consumer Partners, argues that the gender imbalance in the investment community is unreasonable, especially for companies that invest in consumer brands because women tend to dominate household spending. "Both male and female entrepreneurs can increase their credibility by having a female investor when it comes to product positioning and expansion," says Mullin. She added that while some male investors were able to work well with women entrepreneurs, it was often easier for female investors to understand products that were made by women entrepreneurs or targeted at female consumers.

Unfortunately, the situation of gender imbalances in the investment community will not change for the time being. Wess that women entrepreneurs need to be more proactive in their efforts to show the value and uniqueness of their businesses. It's a tough fight, but Wess thinks it's worth the effort, because finding a strong financial partner allows women entrepreneurs to create influential brands.

"I see financing as an opportunity to work with people who have a richer experience and a diverse background to help glossier truly glow." "It's as hard as a needle in a haystack, but luckily, I found a colt," she says. ”