How to fund your women-owned business in 2024

Funding is one of the most important and challenging aspects of running a business, especially for women entrepreneurs. Despite the growing number of women-owned businesses in the world, there are still significant barriers and biases when it comes to fund your women-owned business.

According to the Global Entrepreneurship Monitor, only 6.6% of women entrepreneurs received external funding in 2020, compared to 11.4% of men entrepreneurs. Moreover, the average amount of funding raised by women entrepreneurs was 56% lower than that of men entrepreneurs. This funding gap not only limits the growth and innovation potential of women entrepreneurs, but also deprives the global economy of an estimated $5 trillion in annual GDP.

However, the situation is not hopeless. There are many sources of funding and grants available for women-owned businesses in 2024, as well as strategies and tips to avoid common mistakes and pitfalls when seeking funding.

Common mistakes and pitfalls to avoid when seeking to fund your women-owned business in 2024

One of the worst mental breakdowns an entrepreneur would ever experience is being broke before they can even properly fund their business. Before you lose everything altogether, you have to think of ways to fully recover. For other options, here are the following strategies that we have compiled:

• Invest: Investing in other businesses is actually not a negative thing to do. Ensuring where to put your investment in may be risky but by doing so, you can already build bridges. The process of picking companies to build a portfolio will give you a practice to become a shareholder. This is also one way to attract funding.
• Solve disruptively: A new approach in your business is to approach it more rationally by introducing new methods in your system. This approach can also attract investors into trying your incremental solutions. But make sure those solutions are truly applicable if you don’t want to be labeled as mere scam.
• Seek Investors: Finding investors or asking for financial aid from other people requires guts and unique marketing approach but don’t ask them when you are already broke. It may leave an impression that you can no longer stand back up. There’s no point in investing to a business which has already fallen.
• Review your Pitch: It is more often not on the words you say but on how you say it but you also have to keep a balanced content and a confident approach. You must present an exciting and credible plan that demonstrates how an idea will become a high-performance company. If you can’t pitch effectively, bring in a partner who can.
• Learn from Rejection: I have set up my business in Jakarta, Indonesia but because of competition and the fast growth of market which I cannot keep up with, a lot of business funding sources rejected me. Despite all prepositions, some were just sure that my business won’t last. But I don’t have the time to sulk and get depressed with all those rejections. Every pitch presented an opportunity and after a lot of rejections and almost being in the edge of defeat, an investor accepted my business plan telling me that it seems I have had researched about it all throughout since I know all the pointers needed

Besides these strategies, there are some common mistakes and pitfalls that you should avoid when seeking funding for your women-owned business in 2024, such as:

• Not doing enough research on the funding options and eligibility criteria: There are many types of funding and grants available for women-owned businesses in 2024, but they have different requirements and criteria that you need to meet. For example, some funding sources may only target specific industries, regions, stages, or social impact goals. Therefore, you need to do your homework and find out which funding sources are the most suitable and realistic for your business. You can use online databases, directories, and platforms that list and match funding opportunities for women entrepreneurs, such as The Funding Network, GrantWatch, and SheEO.
• Not having a clear and realistic business plan, financial projections, and pitch deck: Your business plan, financial projections, and pitch deck are the key documents that you need to present to potential funders and convince them of the viability and value of your business. Therefore, you need to make sure that they are clear, realistic, and professional. Your business plan should include your mission, vision, goals, market analysis, competitive advantage, marketing strategy, operations plan, and risk analysis. Your financial projections should show your revenue, expenses, cash flow, and break-even point for at least three years. Your pitch deck should summarize your business plan and highlight your problem, solution, product, market, traction, team, and ask. You can use online tools and templates to help you create these documents, such as LivePlan, Enloop, and Slidebean.
• Not building a strong network and relationship with potential funders and mentors: Funding is not only about money, but also about people. You need to build a strong network and relationship with potential funders and mentors who can support, advise, and connect you with more opportunities and resources. You can attend events, workshops, and programs that are designed for women entrepreneurs, such as the Women’s Entrepreneurship Day, the Women Startup Challenge, and the Women in Tech Summit. You can also join online communities, groups, and forums that are dedicated to women entrepreneurs, such as Women 2.0, Women Who Tech, and Women Entrepreneurs Network. You can also reach out to successful women entrepreneurs and leaders who can mentor and inspire you, such as Sara Blakely, Sheryl Sandberg, and Indra Nooyi.
• Not asking for the right amount of money or giving up too much equity or control: One of the most difficult decisions that you need to make when seeking to fund your women-owned business in 2024 is how much money to ask for and how much equity or control to give up. You need to balance your current and future needs, as well as your valuation and negotiation skills. You need to ask for enough money to cover your expenses and growth plans, but not too much that you overestimate your worth or scare away potential funders. You also need to give up some equity or control to share the risk and reward with your funders, but not too much that you lose your ownership or vision of your business. You can use online calculators and guides to help you determine the right amount of money and equity to ask for, such as the Startup Equity Calculator, the Startup Valuation Calculator, and the Startup Funding Guide.
• Not being prepared for rejection and feedback: Rejection and feedback are inevitable parts of the funding process. You need to be prepared to face them and learn from them. You need to understand that rejection does not mean failure, but rather an opportunity to improve and try again. You need to listen to the feedback that you receive from potential funders and mentors, and use it to refine and revise your business plan, financial projections, and pitch deck. You also need to keep a positive and resilient attitude, and not give up on your dreams and goals. You can use online resources and stories to help you cope with rejection and feedback, such as the Rejection Therapy, the Failory, and the Founders at Fail.

Leading and reliable sources of funding and grants for women-owned businesses in 2024

If you avoid the common mistakes and pitfalls that we discussed in the previous section, you will have a better chance of securing funding and grants for your women-owned business in 2024. However, you still need to know where to look for them and how to apply for them. In this section, we will introduce some of the leading and reliable sources of funding and grants for women-owned businesses in 2024, categorized into four types: government programs and agencies, private and corporate grants, venture capital and angel investors, and crowdfunding platforms and online lenders.

Government programs and agencies

Government programs and agencies are one of the most reliable and accessible sources of funding and grants for women-owned businesses in 2024. They offer various benefits, such as low-interest rates, long repayment terms, tax incentives, and technical assistance. However, they also have strict eligibility criteria, application processes, and reporting requirements. Some of the government programs and agencies that you can apply for are:

• The SBA 8(a) Business Development program: This is a program administered by the U.S. Small Business Administration (SBA) that helps socially and economically disadvantaged entrepreneurs, including women, to access federal contracts, markets, and capital. The program provides participants with business development assistance, mentoring, training, and networking opportunities. To qualify for the program, you need to be a U.S. citizen, have a personal net worth of less than $750,000, have a business that is at least 51% owned and controlled by a socially and economically disadvantaged individual, have a business that is small according to SBA standards, and have a business that has been in operation for at least two years. You can apply for the program online through the SBA website.
• The Program for Investors in Microentrepreneurs (PRIME): This is a program administered by the SBA that provides grants to organizations that assist low-income entrepreneurs, including women, to start, operate, and grow their businesses. The program supports various activities, such as training, counseling, mentoring, and access to markets and capital. To qualify for the program, you need to be an organization that serves low-income entrepreneurs, such as a nonprofit, a community development financial institution, a microenterprise development organization, or a state or local government agency.

Private and corporate grants

Private and corporate grants are another source of funding and grants for women-owned businesses in 2024. They offer various advantages, such as no repayment, no equity, and no strings attached. However, they also have high competition, limited availability, and specific criteria. Some of the private and corporate grants that you can apply for are:

• The Amber Grant: This is a funding and grants program founded by WomensNet in 1998 in honor of a young woman who died before fulfilling her entrepreneurial dreams. The program awards $25,000 to one woman entrepreneur every month, and $100,000 to one of the monthly winners at the end of the year. The program is open to any woman entrepreneur who has a business idea or an existing business that needs funding. The application process is simple and requires only a short online form and a $25 fee. You can apply for the program online through the WomensNet website.
• The SoGal Startup Grant: This is a grant program launched by SoGal Foundation in 2020 in response to the COVID-19 pandemic and its impact on women and diverse entrepreneurs. The program awards $10,000 to two women or non-binary entrepreneurs every month, as well as access to mentorship, resources, and community. The funding and grants program is open to any woman or non-binary entrepreneur who has a pre-seed or seed stage startup that is solving a global problem. The application process is easy and requires only a short online form and a video pitch. You can apply for the program online through the SoGal Foundation website.
• The FedEx Small Business Grant Contest: This is a grant program initiated by FedEx in 2013 to support and celebrate small businesses across the U.S. The program awards $250,000 to 12 small businesses every year, ranging from $15,000 to $50,000 per winner, as well as access to FedEx services and solutions. The program is open to any small business that has been in operation for at least six months, has less than 99 employees, and has a FedEx account number. The application process is competitive and requires an online form, a video pitch, and a public voting phase. You can apply for the program online through the FedEx website.
• The Cartier Women’s Initiative Award: This is an award program established by Cartier in 2006 in partnership with INSEAD Business School and McKinsey & Company to support and empower women entrepreneurs around the world. The program awards $1 million to 21 women entrepreneurs every year, ranging from $30,000 to $100,000 per winner, as well as access to coaching, training, networking, and visibility. The program is open to any woman entrepreneur who has a for-profit, early-stage business that has a positive social or environmental impact. The application process is rigorous and requires an online form, a business plan, a video interview, and a jury evaluation. You can apply for the program online through the Cartier Women’s Initiative website.
• The Tory Burch Foundation: This is a foundation created by Tory Burch in 2009 to advance women’s empowerment and entrepreneurship in the U.S. The foundation offers various programs and resources for women entrepreneurs, such as the Fellows Program, the Capital Program, the Education Program, and the Embrace Ambition Series. The Fellows Program is a one-year program that provides 50 women entrepreneurs with $5,000 grants, access to mentors, experts, and peers, and a trip to the Tory Burch headquarters. The Capital Program is a partnership with Bank of America that provides women entrepreneurs with access to affordable loans through community lenders. The Education Program is a partnership with Goldman Sachs 10,000 Small Businesses that provides women entrepreneurs with access to online and in-person business education and training. The Embrace Ambition Series is a series of events and content that challenge stereotypes and celebrate women leaders and entrepreneurs. You can apply for or access these programs and resources online through the Tory Burch Foundation website.

Venture capital and angel investors

Venture capital and angel investors are another source of funding and grants for women-owned businesses in 2024. They offer various benefits, such as large amounts of money, strategic advice, and industry connections. However, they also have high expectations, strict terms, and limited representation. Some of the venture capital and angel investors that you can pitch to are:

• BBG Ventures: This is a venture capital firm founded by Susan Lyne and Nisha Dua in 2014 that invests in consumer tech startups that have at least one female founder. The firm focuses on sectors such as e-commerce, media, health, and education, and has backed companies such as Zola, The Wing, Glamsquad, and Lola. The firm typically invests between $100,000 and $1 million in seed and early-stage startups. You can contact the firm online through the BBG Ventures website or email.
• 500 Women: This is a network of women investors, founders, and mentors that is part of the 500 Startups global venture capital firm. The network aims to increase the representation and success of women in the tech industry, and has supported companies such as Talkspace, HopSkipDrive, and Mahmee. The network offers various programs and opportunities for women entrepreneurs, such as the 500 Women Syndicate, the 500 Women Fellowship, and the 500 Women Events. You can join or access these programs and opportunities online through the 500 Women website or email.
• BELLE Capital USA: This is an angel fund and syndicate founded by Lauren Flanagan and Carolyn Cassin in 2012 that invests in women-led companies in the U.S. The fund focuses on sectors such as digital health, clean tech, and IT, and has backed companies such as Springboard Enterprises, InContext Solutions, and Current Motor. The fund typically invests between $100,000 and $1.5 million in early-stage startups. You can contact the fund online through the BELLE Capital USA website or email.
• Golden Seeds: This is an angel network and fund founded by Stephanie Hanbury-Brown in 2005 that invests in women-led companies in the U.S. The network focuses on sectors such as technology, life sciences, consumer products, and social impact, and has backed companies such as Cognition Therapeutics, Zipari, and Poshly. The network typically invests between $50,000 and $500,000 in seed and early-stage startups. You can contact the network online through the Golden Seeds website or email.

Crowdfunding platforms and online lenders

Crowdfunding platforms and online lenders are another source of funding and grants for women-owned businesses in 2024. They offer various advantages, such as fast and easy access, flexible terms, and community support. However, they also have high fees, low success rates, and legal risks. Some of the crowdfunding platforms and online lenders that you can use are:

• IFundWomen: This is a crowdfunding platform and community founded by Karen Cahn in 2016 that is dedicated to women entrepreneurs and creators. The platform allows women entrepreneurs to raise funds for their businesses, projects, or causes, as well as access coaching, resources, and connections. The platform charges a 5% fee on the funds raised, and offers various perks and rewards for backers and campaigners. You can create or support a campaign online through the IFundWomen website.
• Kickstarter: This is a crowdfunding platform and community founded by Perry Chen, Yancey Strickler, and Charles Adler in 2009 that is open to anyone who has a creative idea or project. The platform allows creators to raise funds for their projects, such as art, music, film, games, and technology, as well as offer rewards and updates to backers. The platform charges a 5% fee on the funds raised, and operates on an all-or-nothing model, meaning that creators only get the funds if they reach their goal. You can create or support a project online through the Kickstarter website.
• Indiegogo: This is a crowdfunding platform and community founded by Danae Ringelmann, Slava Rubin, and Eric Schell in 2008 that is open to anyone who has an innovative idea or product. The platform allows entrepreneurs to raise funds for their products, such as gadgets, apparel, books, and food, as well as offer perks and feedback to backers. The platform charges a 5% fee on the funds raised, and offers both fixed and flexible funding models, meaning that entrepreneurs can choose to keep the funds regardless of whether they reach their goal or not. You can create or support a product online through the Indiegogo website.
• Kiva: This is an online lending platform and nonprofit organization founded by Matt Flannery and Jessica Jackley in 2005 that is dedicated to social and financial inclusion. The platform allows entrepreneurs from around the world, especially in developing countries, to access microloans for their businesses, such as agriculture, education, health, and retail, as well as repay and communicate with lenders. The platform does not charge any fees or interest on the loans, and operates on a peer-to-peer model, meaning that lenders can choose which entrepreneurs to lend to and how much to lend. You can create or support a loan online through the Kiva website.
• Funding Circle: This is an online lending platform and company founded by Samir Desai, James Meekings, and Andrew Mullinger in 2010 that is focused on small businesses. The platform allows small businesses from the U.S., the U.K., Germany, and the Netherlands to access loans for their businesses, such as working capital, expansion, and equipment, as well as repay and communicate with investors. The platform charges a 0.99% to 6.99% origination fee and a 4.99% to 27.79% annual interest rate on the loans, and operates on a marketplace model.

The most likely businesses and startups to get funding in 2024

If you use the sources of funding and grants that we discussed in the previous sections, you will have a higher chance of getting funding for your women-owned business in 2024. However, you still need to know what kind of businesses and startups are the most likely to get funding in 2024, and how to position yourself accordingly. In this section, we will cover the following topics:

• Businesses and startups that are innovative, scalable, and impactful, especially in the fields of fintech, 3D, aerospace, and biotech
• Businesses and startups that have a diverse and experienced team, a proven product-market fit, and a loyal customer base
• Businesses and startups that demonstrate social and environmental responsibility and align with the funders’ values and goals

Businesses and startups that are innovative, scalable, and impactful, especially in the fields of fintech, 3D, aerospace, and biotech

One of the main criteria that funders look for when investing in businesses and startups is innovation, scalability, and impact. They want to see businesses and startups that have a unique and novel idea or solution that can address a large and growing market and create a positive change in the world. They also want to see businesses and startups that have a clear and compelling vision and strategy to achieve their goals and overcome their challenges. Some of the fields that are expected to be the most innovative, scalable, and impactful in 2024 are:

• Fintech: This is the field that applies technology to improve and transform financial services, such as banking, payments, lending, insurance, and investing. Fintech is one of the fastest-growing and most disruptive fields in the world, as it offers more convenience, efficiency, accessibility, and security to consumers and businesses. Some of the trends and opportunities that are expected to shape fintech in 2024 are: blockchain and cryptocurrencies, artificial intelligence and machine learning, biometric and voice authentication, robo-advisors and chatbots, and financial inclusion and literacy.
• 3D: This is the field that uses technology to create and manipulate three-dimensional objects, such as models, images, animations, and prints. 3D is one of the most creative and versatile fields in the world, as it offers more realism, interactivity, customization, and functionality to various industries and applications. Some of the trends and opportunities that are expected to shape 3D in 2024 are: virtual reality and augmented reality, 3D scanning and printing, 3D gaming and entertainment, 3D education and training, and 3D art and design.
• Aerospace: This is the field that deals with the design, development, and operation of aircraft, spacecraft, satellites, and rockets. Aerospace is one of the most advanced and ambitious fields in the world, as it offers more exploration, discovery, communication, and transportation to humanity and beyond. Some of the trends and opportunities that are expected to shape aerospace in 2024 are: commercial space travel and tourism, reusable and autonomous rockets and spacecraft, satellite internet and navigation, drone delivery and surveillance, and asteroid mining and colonization.
• Biotech: This is the field that uses technology to manipulate and modify living organisms, such as cells, genes, and proteins. Biotech is one of the most promising and impactful fields in the world, as it offers more solutions, cures, and enhancements to health, medicine, and agriculture. Some of the trends and opportunities that are expected to shape biotech in 2024 are: gene editing and therapy, synthetic biology and bioengineering, personalized and precision medicine, biopharmaceuticals and vaccines, and biofuels and bioplastics.

Businesses and startups that have a diverse and experienced team, a proven product-market fit, and a loyal customer base

Another criterion that funders look for when investing in businesses and startups is the team, the product, and the customer. They want to see businesses and startups that have a diverse and experienced team that can execute the vision and strategy, a proven product-market fit that can satisfy the needs and wants of the target market, and a loyal customer base that can provide feedback, referrals, and revenue. Some of the tips and best practices that you can follow to build and showcase your team, your product, and your customer are:

• Team: Your team is your most valuable asset and your most convincing proof of your potential. You need to build a team that is diverse in terms of skills, backgrounds, perspectives, and roles, as well as experienced in terms of industry, domain, and function. You also need to showcase your team’s qualifications, achievements, and contributions, as well as your team’s culture, values, and dynamics. You can use online tools and platforms to help you recruit, manage, and present your team, such as LinkedIn, AngelList, and Teamable.
• Product: Your product is your core offering and your main differentiator. You need to build a product that is innovative, scalable, and impactful, as well as validated, tested, and refined. You also need to showcase your product’s features, benefits, and advantages, as well as your product’s roadmap, milestones, and metrics. You can use online tools and platforms to help you develop, launch, and demonstrate your product, such as GitHub, Product Hunt, and DemoDay.
• Customer: Your customer is your ultimate judge and your ultimate supporter. You need to build a customer base that is large, growing, and loyal, as well as engaged, satisfied, and retained. You also need to showcase your customer’s needs, wants, and preferences, as well as your customer’s feedback, testimonials, and referrals. You can use online tools and platforms to help you acquire, serve, and delight your customer, such as Mailchimp, SurveyMonkey, and Trustpilot.

Businesses and startups that demonstrate social and environmental responsibility and align with the funders’ values and goals

A final criterion that funders look for when investing in businesses and startups is the social and environmental responsibility and alignment. They want to see businesses and startups that demonstrate a positive social and environmental impact and align with the funders’ values and goals. They also want to see businesses and startups that measure and report their social and environmental performance and outcomes, as well as adhere to the highest ethical and legal standards. Some of the tips and best practices that you can follow to show and improve your social and environmental responsibility and alignment are:

• Define your mission and vision: Your mission and vision are the core statements that define your purpose and direction as a business and a startup. You need to define your mission and vision clearly and concisely, and communicate them to your team, your customers, and your funders. Your mission and vision should reflect your social and environmental impact and alignment, as well as your competitive advantage and differentiation. You can use online tools and frameworks to help you craft your mission and vision, such as the Mission Statement Generator, the Vision Statement Builder, and the Business Model Canvas.
• Set your goals and indicators: Your goals and indicators are the specific and measurable objectives and metrics that you use to track and evaluate your progress and performance as a business and a startup. You need to set your goals and indicators SMARTly and realistically, and review and update them regularly. Your goals and indicators should cover your social and environmental impact and alignment, as well as your financial and operational results. You can use online tools and platforms to help you set and monitor your goals and indicators, such as the OKR Software, the KPI Dashboard, and the Impact Management Project.
• Implement your policies and practices: Your policies and practices are the rules and actions that you follow and take to implement your mission, vision, goals, and indicators as a business and a startup. You need to implement your policies and practices consistently and transparently, and document and report them accurately. Your policies and practices should comply with your social and environmental impact and alignment, as well as your ethical and legal obligations. You can use online tools and resources to help you implement and improve your policies and practices, such as the B Impact Assessment, the ISO Standards, and the Global Reporting Initiative.

Conclusion

Funding is one of the most important and challenging aspects of running a women-owned business in 2024. However, it is not impossible. There are many sources of funding and grants available for women-owned businesses in 2024, as well as strategies and tips to avoid common mistakes and pitfalls when seeking funding. In this blog, we have covered the following topics:

• Common mistakes and pitfalls to avoid when seeking funding for your women-owned business in 2024
• Leading and reliable sources of funding and grants for women-owned businesses in 2024
• The most likely businesses and startups to get funding in 2024

We hope that this blog has been helpful and informative for you, and that you will be able to fund your women-owned business in 2024 successfully and sustainably. If you have any questions, comments, or feedback, please feel free to contact us. We would love to hear from you and support you in your entrepreneurial journey. Thank you for reading and good luck!