A Trillion Dollar Opportunity

As the founder and CEO of Fact Finders Pro (FFP), an AI startup, I’ve personally experienced the challenges and rewards of building a company from scratch, including the complexities of securing external funding. Despite the increasing number of female entrepreneurs, women still face significant barriers in obtaining capital compared to their male counterparts. Female-led businesses are less likely to attract venture capital, even though research consistently shows that investing in women entrepreneurs can generate higher returns.

In this blog, I address the pressing issue of female-led businesses struggling to secure the funding they need to scale and share my insights on how to prepare your business for investors. In today’s market, investing in female founders is not just a good idea — it’s a trillion-dollar opportunity.

The Business Case: Investing in Female Entrepreneurs

The numbers are compelling. Women-led teams generate a 35% higher return on investment than their all-male counterparts. If women entrepreneurs reached parity with men, the global economy could see a $5-$6 trillion boost, according to the Women Entrepreneurs Finance Initiative (WE-FI). Yet, women still face a $1.7 trillion financing gap, meaning businesses led by women remain underfunded.

A significant part of this issue is the gender gap in the investment community. In the US, women account for less than 20% of early-stage investors, which creates a funding mismatch. As a result, female entrepreneurs often struggle to access the same resources as their male peers. However, the tide is changing. Companies with diverse leadership teams tend to outperform their competitors. A McKinsey study found that companies in the top quartile for gender diversity on executive teams are 21% more likely to have above-average profitability.

The evidence is clear: diverse leadership leads to better business performance.

Preparing Your Business for Investors

It’s important to prepare your business for investors from the beginning. This is what they are looking for:

You and Your Management Team: Investors want to know who’s on your team, what experience they bring, and how that contributes to your success. A diverse team with complementary expertise and leadership qualities is key.

At FFP, our team is made up of experienced professionals with diverse backgrounds, and we make that information easily accessible on our website.

The Problem You Solve: Make sure your business solves a real problem. Do your research to show with numbers that there’s demand for your offering.

At FFP our mission is to stop disinformation by using sophisticated AI solutions for real-time fact-checking and content verification, as well as providing organizations with sophisticated fact-checking tools. This is a $45 billion opportunity.

Your Business Plan: You need a strong business plan, clear, detailed, and realistic. Outline your business model, solution, target market and customers, revenue models, and what differentiates you you’re your competitors. Investors must easily understand your vision and how you’ll make it a reality.

At FFP, our vision is to be the leading AI platform for fact-checking, empowering individuals and organizations with tools to discern truth from falsehood. We have a detailed roadmap in place, which we can easily explain to potential investors.

Proof of Concept: Investors want to see that your idea works in practice. Demonstrating your product gives investors more confidence in your ability to execute.

At FFP, we’re currently working on our proof of concept, and below you can see the first impression of how it will look like.

Scalability: Investors look for businesses with high growth potential. A startup that can expand rapidly has a much better chance of capturing investor interest.

At FFP, we’ve mapped out our 5-year growth plan, demonstrating our ability to scale quickly and effectively.

Return on Investment: Finally, investors want to know how and when they will see a return. Be transparent and realistic with your financial projections, and show how you’ll deliver on those promises.

Building Your Network

One of the greatest challenges female entrepreneurs face is finding the right support. It’s easy to feel isolated, but there’s a growing global community of female founders, mentors, and investors eager to connect and collaborate with you.

Building a robust LinkedIn profile, sharing insights, and connecting with other like-minded entrepreneurs and investors can open up many opportunities. Furthermore, join industry groups, attend webinars, seek speaker opportunities and engage with posts – you never know when a simple connection could lead to a valuable partnership.

Additionally, seek out to connect with female investors. According to PitchBook, female investors tend to understand the challenges women founders face, and they are often more inclined to invest in businesses that are led by women.

Let’s Support Each Other

As a female founder, the path to success can sometimes feel steeper and lonely. But one thing I’ve learned is the power of peers and finding mentors and advisors who understand the challenges you face. Early on, I reached out to my Harvard community, fellow founders and sought connections with other women who had gone before me. These relationships have been invaluable, providing insights, peer support, and encouragement. The unwavering support from my Harvard Business School community and others in my network has fueled my determination and helped me refine my path forward.

As female founders, we have an incredible opportunity to create ecosystems where we lift each other up. Let’s continue to accelerate our businesses by supporting one another, and make the world a more equitable place for future generations of female founders.