International Women's Day 2024: Female Founders and How To “Invest” in Women

International Women's Day (8 March) celebrates the social, economic, cultural, and political achievements of women, whilst being a call to action to accelerate gender equality. In support of the United Nation’s IWD 2024 theme, “Invest in Women: Accelerate Progress”, we chatted to Alla Ouvarova and Anna Richey (co-founders of Two Chicks), Anna Chalov (co-founder of Bemuse), Rene Macdonald (founder of Lisou), and Somi Arian (founder of InPeak), about their incredible efforts in driving positive change for the future generations of female entrepreneurs, and the ways in which we can all invest in women.

Building connections

For Somi, the adage “your network is your net worth” is particularly profound. It’s not rocket science that a robust network can lead to new opportunities and personal and professional support for female entrepreneurs. It’s therefore really encouraging that there are now so many support networks available for female founders. Rene, for example, works closely with Allbright (a private members club for women), while also being part of two female start-up WhatsApp groups, which she comments “has been a great way to support one another and share information”. Anna C is a fan of Young Foodies (for food businesses), and the NatWest Accelerator (which works with UK entrepreneurs to scale their businesses), and notes that being a part of a wider group facilitates knowledge and idea sharing.

In 2022, Alla and Anna R, who have benefited from the EY Entrepreneurial Winning Women community, launched their own initiative, Future Female Entrepreneur (FFE), to “inspire the next generation of female entrepreneurs and to help ensure that more UK businesses are created and led by women”. FFE consists of regular events throughout central London, aimed at aspiring female founders with knowledge-sharing and networking at their core.

Through InPeak, Somi has also fostered an environment where female founders can connect by offering tools and resources that empower women to expand their networks, through targeted forums, specialised content, and networking events.

If you know any female founders, think about whether there is anyone in your network who might be helpful to them. Alternatively, engaging with a female founder's social media posts could raise their profile and connect them with useful contacts. While small acts, they could have a huge impact.

Bridging the funding gap

The importance of funding for early-stage businesses is undeniable, and, as neatly summed up by Anna C, “female founders need supportive investors”. However, the fundraising statistics for female founders rarely fall in their favour, with systemic biases in the investment ecosystem, a shortage of female investors, fewer networks and a lack of confidence being just some of the many hurdles attributed to the funding gap. So, how can we change the statistics?

Events dedicated to bringing together female founders, and those working in finance or funding, are crucial. InPeak has dedicated numerous sessions to fundraising strategies, focusing on crafting compelling pitch decks and effective investor networking. As part of FFE, Alla and Anna R held a pitching competition last year, with cash prizes awarded to help fund some of the female founders' businesses (with a similar event also planned for this year). Anna C was honoured to receive a beneficial reward package herself, as one of the Highly Commended Top 10 in The Telegraph’s ‘100 Entrepreneurial Women to Watch’ list, an award which she says was “hugely empowering”.

Somi also notes that “engaging friends, family, and professional connections as initial investors can secure the essential early-stage capital and rally a support system that believes in your vision”, with the majority of Anna C’s smaller investors being friends and family, and Alla and Anna R's attributing their ability to grow organically to raising small amounts from family and friends.

Angel investors are also often fundamental to an entrepreneur’s growth journey, bringing funding, invaluable business support and connections. Research carried out in 2022 showed that growing the number of female angels will directly increase investment in female entrepreneurs. However, when there’s a global shortage of women using their wealth in this way (because women are less likely to have been educated, encouraged or empowered to do so) it is unsurprising female founders experience such inequality in accessing funding. Somi’s advice to women contemplating angel investing is threefold: “First, dispel the myth that investing requires vast initial capital. Many platforms allow you to start small to grow your portfolio over time. Second, prioritise financial education. Online courses and investment-focused communities are among the resources that can equip individuals with the knowledge and confidence needed for informed decision-making. Finally, leverage the strength of networks. Join forums and groups like those we foster at InPeak, where you can exchange ideas, experiences, and encouragement with fellow women investors”.

If you’re interested in becoming an angel investor, there are a growing number of organisations that aim to encourage more women to do so. Many of these look to support and empower their female investors by offering skill and knowledge building resources. We’ve heard great things about Alma Angels, Angel Academe, Investing Women, Mint Ventures and HERmesa.

Using our consumer power

According to the World Economic Forum, last year women controlled or influenced 85 per cent of consumer spending. While we might not all have the bank balances needed to invest, relevant expertise to mentor, or helpful contacts to introduce, everyone has the power to buy from female-founded businesses. Anna C encourages consumers to “be more curious about the stories behind brands and business, as this knowledge enables consumers to support the stories they like by voting with their purse!”.

Whether we’re talking food, clothes or beauty products, how many items that you own (or eat!) can you name as being from a female-founded brand? You might not even be aware of some of the women-owned businesses you are supporting!

Bemuse, Lisou and Two Chicks all feature on Buy Women Built, a fantastic platform dedicated to showcasing British brands built by women “not only to profile great female founders but also to harness the power of consumer spending, in turn creating a fairer, stronger society”. Anna C highlights that the platform has “created a kitemark to put on female-built products” and recommends the directory as a great resource to find out about female-founded businesses.

For some more inspiration, we asked our interviewees to share their favourite female-owned businesses:

So, with Mother’s Day on the horizon, instead of grabbing a bunch of flowers from your local supermarket, why not make a conscious decision to support a female-owned business instead? And while it might seem insignificant, simply liking, sharing or posting about a female founder's products or services on social media can make a big impact, as can a positive review online.

Inspiring the next generation

When female entrepreneurs succeed, they create job opportunities, boost the economy, and set an excellent example for future generations. However, Alla and Anna R recognise that “schools need to evolve, as it seems our educational system is not keeping up to date with the ever-evolving world”. Somi encourages women in business to “work with educational systems to allow young girls to gain access to and knowledge of business skills and STEM programs to learn how to grow to be entrepreneurs, scientists and business leaders”, which can be done through various mentorship programmes such as FFE (which has a one-to-one mentoring programme), Future First, and The Prince’s Trust.

Anna C is also an advocate of leading by example and encouraging the next generation of female entrepreneurs this way. She acknowledges how much she has benefitted from others sharing their experiences and that “inspiring the next generation and ‘paying back’ my knowledge and experience would make me feel fulfilled. I have profited from it so greatly myself.”

So, let’s all play our part to close the gender gap and support women-led businesses. Together, we can make a real difference!

To find out more about our entrepreneurs network here at Farrer & Co, please do visit our Entrepreneurs Hub here. You can also join our network here.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, March 2024