Oluwadamilola Elizabeth
Fundraising is an essential stage in the fast-paced world of startups to make creative ideas a reality. But it might be especially difficult for female founders to navigate the financing scene. Insights from seasoned investors and entrepreneurs Oyin Solebo and Ashim Egunjobi are explored in this article to offer helpful advice to female founders hoping to get capital and turn their ideas into profitable businesses.
This fireside chat featured Oyin Solebo and Ashim Egunjobi, two experienced entrepreneurs and investors, with Eunice Ajim as the moderator. These two investors shared their insights on navigating the challenging landscape of fundraising, particularly for female founders. Ashim Egunjobi, Managing Partner at Octerra Capital, and Oyin Solebo, Managing Director at ARM Labs Lagos Techstars Accelerator. Their dialogue not only revealed the challenges and experiences of investors but also provided a nuanced view of the intricate landscape of capital deployment in 2023.
Oyin Solebo encouraged proactive engagement, advising female founders to approach investors confidently, seek feedback, and treat negative feedback as a weapon for improvement. She highlighted a significant bias in approaching investors, noting that male founders tend to be more assertive and prepared in pitching their businesses to investors. Female founders, on the other hand, often present their names and company information without delving into a comprehensive discussion with the investors. Solebo emphasised the need for female founders to put themselves out there more, urging them to share their visions and business details actively.
Also, she acknowledged the difficulty of fundraising, Oyin Solebo provided a strategic approach, indicating that being ready and direct about fundraising increases success rates. She underscored the importance of understanding investors' criteria, processes, and timelines to avoid wasting both the founder's and investor's time. Solebo concluded with a call for thorough preparation, including having a well-structured financial model and corporate setup, to facilitate smooth investment processes.
Ashim Egunjobi added valuable insights by stressing the need for articulating a clear vision, seeking mentorship, and leveraging networks.
When asked to give practical advice to female founders Ashim Egunjobi shares invaluable advice for female founders navigating the challenging landscape of fundraising, emphasising the importance of focusing on outcomes rather than just closing rounds. She underscores the need for a clear understanding of the impact investors' funds will have on their goals, urging founders to articulate specific uses of proceeds. Ashim Egunjobi encourages founders to break down vague allocations like "20% to Marketing, 25% into tech" and provide detailed insights into their strategic hires and operational plans.
Furthermore, Egunjobi addresses the necessity for women to overcome hesitations and actively put themselves forward. He advocates for approaching founder-friendly, female-friendly VCs and seeking advice even from non-investors, stressing the value of every conversation. Egunjobi advises founders to carry a notebook, learn from rejections, and inquire about reasons behind a "NO." She admonish the female founder in the room with this saying “Do not leave the room until you’ve actually left”. She also urge women to confidently address questions about family and other priorities, showcasing their competence and capabilities.
During the Q&A session, participants sought advice on standing out in front of investors. The key recommendation was to make oneself visible by asking questions, even if unsure. Confidence in asking questions was highlighted as essential.
Another insightful question focused on the traits of founders that Ashim Egunjobi invests in. She stressed the need for founders to understand the investor's business process and seek referrals. Having a robust pitch deck was also highlighted as essential.
Conclusion
The fireside chat with Oyin Solebo and Ashim Egunjobi illuminated the intricacies of the current investment landscape, offering practical advice for female founders navigating the often-daunting world of fundraising. From emphasizing proactive engagement and thorough preparation to embracing resilience and seeking mentorship, the conversation highlighted key facets of success for female founders seeking to make their mark in the startup ecosystem. By embracing these insights and strategies, female founders can increase their chances of securing funding and propelling their ventures towards sustainable growth and impact.