Thread by @entreprenenture

Let's discuss this topic for this week's #GEMChats on #entrepreneurs and #entrepreneurship.

This week's topic is #Venture #Capitals and what is funding like for #womenentrepreneurs!

Please follow us, RT, reply and Like our #thread to discuss this topic.

https://twitter.com/GEM_Hello/status/1019790015784673280

In June 2017, @HarvardBiz published an article questioning the discrepancy in VC funding for #entrepreneurs of different genders.

In the US, #female entrepreneurs own 38% of the businesses in the country yet receive only about 2% of all venture funding in the whole country!

Some of you answered the poll that the reason for this phenomenon is that there is a lack of female VCs.

The #data however speaks otherwise; the number of female VCs has increased to 7% from 3% in 2014 and yet the funding gap has only increased.

Why does this happen?

68% of you answered that the investors' perception is the reason.

The HBR report found that VCs approach and question male #entrepreneurs and #female entrepreneurs differently. They tend to use a promotion-based approach for males and a prevention-based approach for females.

This in turn correlates with the amount of funding the entrepreneur receives. The prevention-based approach for female entrepreneurs tend to lead to a decrease in the amount of funding they receive.

However, that is not the only factor and things work differently outside the US!

VCs tend to be males, #womenentrepreneurs tend to venture into startups that are not necessarily in the tech-industry.

Thus there is an emotional disconnect. @KatherineAHays (sic) believes her startup @vivoom would have been more appealing to VCs had she been a 21 year old male.

Not only that, #womenentrepreneurs tend to not seek venture funding. In a survey by Kauffman Foundation of nearly 350 female tech #startup leaders, 80% used personal savings as their top source of #funding in starting a new #business.

So what gives?

Things look much brighter in #France.

Station F, the world's biggest startup incubator even has femmes (woman) as one of the Fs in its name.

About 20% of Kima Ventures', a French VC, current portfolio is in female-led startups and is set to increase up to 25%!

While this funding gap hasn't been a norm in #Malaysia, women entrepreneurs or usahawan wanita can look to further their #entrepreneurship talent through other forms of business funding!

Here are 6 ways to do so: allianz.com.my/6-programmes-t…

If you are an aspiring #womenentrepreneur and want to read on successful women in the local #entrepreneurship scene, read up at GEM Magazine:

gem-magazine.com/connecting-the…

Women being an uncommon sight in the #Malaysian #tech #startup field has never stopped Ai Ching from Piktograph.

Read more: gem-magazine.com/redesigning-gr…

That's a wrap for our this week's #GEMChats.

Sources for this thread:
hbr.org/2017/06/male-a…

fortune.com/2017/03/13/fem…

forbes.com/feature/france…

fastcompany.com/40482640/vive-…

knowledge.wharton.upenn.edu/article/vcs-ar…

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