Presenting your idea to a group of potential investors can be stressful enough as it is. Not knowing how they will take it and if something good will come out of it can be a lot to handle. And it’s normal. After all, the future of your business depends on their decision. Studies have shown that small businesses have a much better chance of getting funded when the group of investors are women. While there’s been a huge increase in women entrepreneurs in recent years, there’s also been a huge increase in women investors. Women bring a different perspective to the pitch evaluation compared to men. Their way of evaluation a business proposal and deciding whether or not it’s worth investing is different.
So, what sets them apart from men? Why is it that a business is more likely to get funded when a women investor is part of the decision making? Well, we’ve done some research. Here are the main aspects that set women investors apart from men investors.
Men pass on ideas they don’t get
While your business idea may seem like something that can target a specific audience, not everyone might see it right away. Men investors often have a hard time understanding ideas that don’t relate to them. Which is why when they are presented with a pitch that they don’t get, they’ll often pass on it. While it could be understandable in certain situations, when it comes to business, they need to look past that. Women have the ability to see the results that men often don’t see. They can see the growth and how there’s a need for it. Where men lack on understanding, women rise on seing the facts and the potential.
Women focus on the details
It’s often said that men look at the bigger picture. They are focused on the end result and how soon they can make profit. While these are important aspects, it’s crucial to focus on the how that will happen. This is where women investors step in. They focus on the details. They want to know how you will get from Point A to Point B. The details that business owners put into their proposal are appreciated by female investors. Their questions will be focused on the smaller details that male investors will often not pay attention to. This will often be the deciding factor for female investors. If the pitch has a detailed plan, there is a bigger chance for success. Women understand that which is what sets them apart from male investors.
Women focus on building strong partnerships
One of the major decision factors for women investors is the potential of building a partnership. Studies have shown that women will often invest in ideas where they can see a partnership. Wanting the business to succeed and seing it if will be a good fit for all parties is crucial. Having a solid partnership from the beginning can be a great asset from the get-go. There is a certain amount of shared value that comes with every investment strategy. However, it’s different from male investors. The partnership often happens down the road once the deal is signed, sealed and delivered. It’s not something that is realized during the pitch process.
Female Investors value a balanced outlook on the business
While it’s good to only want to focus on the positive aspects of your business when giving a pitch, it’s important to also mention the not so good parts. Providing a realistic view of your business can be seen as a good thing for female investors. It shows them that you’re realistic. Not only are you aware of any issues you may encounter, but you’re also prepared and have put in place strategic initiatives. It’s practical and reasonable to consider both sides. Women investors understand the benefit of providing the pros and cons of the business. However, male investors will often see it as a sign of weakness and a lack of believing in the success of the company. That’s where there’s the difference between female investors and male investors.