According to TechCrunch, funding into all female-founded companies remains a smaller fraction of that going to male-founded companies. While investment deals into all female-founded companies are on the rise, the total dollar value raised by these companies is not showing radical increases. Startups with a solo female founder or an all-female founding team raised 2.3% of the total funding in 2023; meanwhile, 15% of the funding went to a founding team with at least one woman.
In this edition, we sat down with Hannah Subayi who is an experienced impact investor in Africa, currently acting as a Partner at Launch Africa Ventures, a top-performing early stage fund in Africa, with a specific focus on frontier markets, deeptech, climate tech investments and gender-lens strategies. We also sat down with one of the entrepreneurs that Launch Africa Ventures invested in, Bola Bardet, to discuss her journey of successfully raising a 4.5 million Euro round in 2023. Bola Bardet is also a Top 10 Africa’s Business Hero.
Below is their take on how African female founders can successfully raise capital:
HANNAH: What was compelling about Bola Bardet as an entrepreneur and SUSU as an entrepreneur that made you decide to back her?
There are three reasons that led to myself and the rest of the investment committee decide to back Bola Bardet and Susu:
● Strong founder and strong team: Bola Bardet and SUSU are good examples of the kind of entrepreneur and impact story we want to see on the African continent. I feel very fortunate to have had the opportunity to invest in them. We chose to invest in the company because Bola is an inspiring, dedicated, talented, and smart founder and she has also built a strong team that gave us confidence.
● The solution offered by Susu & the Countries of Operations: I come from a family of doctors and my father was a cardiologist, so I have always had an interest in healthcare on a personal level. The solution that SUSU is delivering in the various markets that they are working in is compelling and necessary. They have a strong business model. Personally as an investor, I am also always looking at opportunities that are under-financed and underrated and this explains why I am always attracted to companies working in francophone Africa and businesses that are owned by women.
● Business Robustness and Profitability: As an investor, I also need to look at businesses that are able to generate money and that make sense from a portfolio perspective. As a venture capital firm, it is very important to us that the capital we have raised from third parties (e.g. High Networth Individuals, Family Offices, foundations) generates attractive returns as we have a fiduciary duty to them.
HANNAH SUBAYI: As a female investor, what would you say is the reason why female founders are still struggling to raise significant amounts of investments compared to their male counterparts?
● Lack of Access to the Right Platforms: One of the reasons is that female founders are at times not able to access the right platforms, industry events, forums, and networking spaces compared to their male counterparts. If, for example, such events are taking place during hours that conflict with the female founder’s family responsibilities, it might limit their opportunities to encounter and pitch to the right investors.
● Inadequate Pitching Strategies: In my experience as a female investor, I have noticed that on average female founders tend to underestimate their achievements. Sometimes they can spend a lot of time talking about risk and not enough time about the opportunities compared to their male counterparts.
● Bias of Investors: Investors are also human and prone to bias and error. They invest in what they like and what is familiar. There is a lot of work that is being done for people to apply a gender lens in investing. This does not mean they prioritize women, but it is training investors to consider other factors affecting the female founder that are unique to them. It is also an emphasis on always focusing on the best opportunities as an investor regardless of the founder’s gender.
BOLA BARDET: You have successfully raised 4.5 million euros recently. Could you walk us through that journey and what has led to your success?
When I started my fundraising journey there were a lot of odds against me. I was a woman from Francophone Africa, operating in countries such as Benin, Cameroon, and Côte d’Ivoire that are not as attractive as Nigeria and Kenya, and I was raising money for a healthcare company. Healthcare as a sector is sensitive and that presents a lot of risk. I was determined to go through this journey because despite some of those disadvantages presented above, we had strong numbers, a strong team, and good traction and I believed that we could beat the statistics.
We wanted to raise 2.5 Million Euros but we started with a bridge round so that we increased our cash runway; and we focused on raising the rest of the money. We found a lead investor, INCO, who decided to invest part of the money and asked us to find other investors. We ended up with more investors onboard than initially planned and we raised 4.5 Million Euros in the end.
This process took us 15 months to complete and the journey was longer and tougher than I anticipated at the beginning. Though this was the toughest professional experience I have had to date, I am glad that we are able to pave a way for other female entrepreneurs who would like to raise funding in the future.
BOLA BARDET: What has that journey taught you about the ability for women to raise funding?
I was able to successfully raise funds because of the investors I had on board, but also because I have a strong team. My Chief of Staff ran our company for the most part during the duration of my fundraising journey. It takes a lot of time for the founder and it is important to have a strong support system.
What advice can you give women entrepreneurs who are seeking to raise funding?
HANNAH SUBAYI: Do not waste time on the wrong investors. If a certain investor is known to never fund your industry or your region, it is a waste of time to try and pursue them. It is important to pursue investors who are on your side as much as possible.
BOLA BARDET: My advice to female entrepreneurs who would like to raise funding is to be solid about their vision and their determination to succeed. They will need that perspective as the raising journey becomes tougher. It is important to keep in mind that the fundraising journey is a marathon and not a sprint. Therefore, establish your plan B for your business in case the process takes longer than planned. Continue to talk with investors and keep them updated all the time. One motto that I always keep in mind for myself is in French and it says” Rêve, Ose, Travaille, et n’Abandonne Jamais.”
