Raising investment as a female founder in 2023

As we enter into a new year surrounded by doom and gloom news about the investment market, what does this mean for you as a female founder looking to secure funding in 2023?

What's been going on in the market?

After a very buoyant end to 2021 following the pandemic, 2022 saw a very significant drop of 24% in the number of venture deals done in the UK, with the amount of capital invested plummeting by 52% in the last 12 months [1].

The current economic climate is undoubtably taking its toll. In challenging times, investors often hold back, double down on their existing portfolio of investments, take less risks on early-stage businesses, and tend to back founders and industries that they feel most familiar with.

We have still not seen the dial move on funding directed to female led start-ups, who still only secure less than 2 pence in every pound of venture funding invested. We are still operating in an investment ecosystem where 95% of partners at VC firms are men, only 14% of angel investors are women.



What does 2023 have in store?

The turbulent financial environment looks set to be a continuing theme for the year ahead. It won’t be easy for early-stage start-ups to get funded. It will be more challenging for D2C businesses, as investors shy away from e-commerce and other consumer focused sectors which are more likely to be impacted by the cost-of-living crisis.

But those businesses that are solving long-term pressing problems in the world, shaking up industries, and making real innovations will still be of interest to investors, especially those who are looking for a return over the medium and long term. Tech businesses will undoubtably continue to attract most venture funding, including B2B / SaaS companies, FinTech and AI. Biotech and sustainable energy will remain hot sectors.

The increase in the SEIS investment allowance for start-ups from £150k to £250k which comes into effect in April 2023 will I hope encourage investors to direct their funds into very early stage start-ups, where we’re starting to see a lot more female founders coming through.

If we’ve learned anything over the past few years is that we must expect the unexpected. Therefore, raise money before you need it, and raise as much as you can. Because you never know what is round the corner.

How can you improve your chances of raising investment?

The very best will always win through. But there is a lot you need to get right to secure investment.

Not only must you have a highly investable business – solving a real and pressing problem, with a significant market opportunity and great potential for returns – but you must also come across as a credible founder that an investor can trust with their money. Having robust and well thought through financial forecasts, the right raise amount and a valuation that hits the sweet spot and an outstanding pitch deck are all essential parts of preparing for a successful raise. You also need to be speaking with the right investors that are most likely to be a fit for you, know how to have great meetings with them, and be able to negotiate and close your deal.

Empowering yourself with the skills to perform at your very best on all these elements will help you cut through, along with having the right professional support along the journey. Raising investment is like climbing Everest. You wouldn’t attempt it without training and preparation in advance, a well thought through strategy and plan on how you’re going to attempt the expedition, or an experienced sherpa to guide you to the peak.