Multiple issues – Pandora’s box > Impact investors are having a hard time finding mature social entrepreneurs with viable propositions to support. > Low number of (equity) investments in women-led social enterprise. > Some women assume that their social venture is not suitable for investment. There are no seed-stage “mentor-capital” programmes on offer to social entrepreneurs and particularly women, where they can hear from the investors themselves how diverse their industry is. Lack of confidence or over -confidence is a dangerous factor Lack of continuous peer support or coaching/mentoring to maintain high levels of confidence. Investors (a majority led by men) are not aware of these women-led social ventures. This results in a lack of reliable pipeline of deals. On the demand-side, only a very small proportion of women-owned businesses raise venture capital. On the supply-side there very few women are involved in making investments, either as venture capital fund managers or as business angels. These features may be related: the limited participation of women as investors may go a considerable way towards explaining the limited use of venture capital as a financing source by women entrepreneurs to two factors. First, women are less likely to have had prior entrepreneurial experience or a high level of managerial experience in a corporate setting and are hence less likely to participate in networks with high net worth individuals (what Verheul and Thurik (2001) refer to as the indirect effects underlying gender-based differential access to capital). Second, if women do establish such contacts they need to build a strong case for their capabilities and commitment, often without the benefit of an established relationship or trust engendered by longstanding relationships. Accordingly, there is an argument that an increase in the number and visibility of women business angels, including the development of women-only business angel networks (Hill et al 2004; Abramson 2001; Shaw 2001), would enhance the supply of finance to women entrepreneurs. Other facts: Women investors are statistically younger (35-44), the origin of their money is different (inheritance, salary or spouse wealth). Women are more likely to be motivated by the desire to support the next generation of entrepreneurs (25% considered this to be ‘very important’ compared with just 5% of males) and to support socially beneficial products or services (50% of women thought this was ‘quite important’ or ‘very important’ compared with 11% of males and only 45% considered it unimportant compared with 89% of men). A minority of women did suggest that they would relax their investment criteria to consider investing in a female entrepreneur, or would spend time helping women entrepreneurs become investment ready (in an illustration of Perlman and Fehr’s (1987) suggestion that in terms of network behaviour and relationships women ‘express’ and offer (emotional) support rather than engage in transactional behaviour). From this it can be inferred that having more women angel investors is likely to result in more investments in women entrepreneurs, in absolute if not in relative terms. Specifically, increasing the visibility and number of women business angels might attract additional deal flow from women entrepreneurs: there is some evidence that while women venture capitalists do not actively canvass women entrepreneurs they may attract more deal flow from women entrepreneurs because of their visibility (Brush et al 2004). Second, there are differences in the sources of deal flow used by women angels (greater reliance on business associates and professionals and lower reliance on active personal search), their networking behaviour (women are less likely to invest alone, less likely to rely solely on their own judgement in due diligence and less well connected with or knowing other business angels, including women angels) and their post-investment value-added contribution (women were more likely to assist on strategy development and with short-term problems, making contacts with suppliers and customers and management team recruitment). These differences suggest that a fruitful line of further investigation will be into the nature of the relationships within which women investors (and their actual and potential investees) are embedded (Uzzi and Lancaster 2003).
Oguntê created Make a Wave, a unique pre-incubator for Women Social Entrepreneurs, (http://www.ogunte.com/innovation/make-a-wave-pre-incubator) to give a gendered lens on impact investment, and required knowledge and competences to pitch to investment and funding panels. A group of participants are first shortlisted based on a business diagnostic. They are selected by a group of business angels, who will provide some financial support as well as mentoring, It’s like having a very skilled board member with you during the programme, to help develop your business. It’s also someone you would very much like to build a healthy relationship with as if both parties are happy, there might be some more financial opportunities. Over 6 months, participants access women angels and VC’s, impact investors, philanthropists and accelerators, who give invaluable insights on the diversity of their industry and their expectations, during monthly 1-hour visits. In addition, Make a Wave offers a series of conference calls with global women social innovators and mentors, who offer practical operational advice, insights and feedback on the participant’s ventures. Between sessions, participants get coached and mentored, access real funding opportunities and up-to-date information about the industry.
( however women are more cautious so might seem less ambitious in their projections – sally goodsell) Investors will look at high credibility of the entrepreneur/management team AND will also rely on their gut feeling.
#impinv #women #socentMoving Women-led Social Enterprises to the Next Level
#impinv #women #socent We heard… “Impact investors are having a hard time finding mature social entrepreneurs with viable propositions to support”Moving Women-led Social Enterprises to the Next Level
#impinv #women #socent Basic to-do list before pitching (not just the day before) • do some soul-searching • recharge confidence levels • connect with peers who stretch you and • meet experts who ask you challenging questions • build your credibilityMoving Women-led Social Enterprises to the Next Level
#impinv #women #socentAnd preferablyAll of the above…In a safe spaceWithout wastingprecious management timeMoving Women-led Social Enterprises to the Next Level
#impinv #women #socenthttp://www.ogunte.com/innovation/make-a-wave-pre-incubatorMoving Women-led Social Enterprises to the Next Level
#impinv #women #socent Make a Wave Immediate Outcomes: • Clarity on the diversity of the financial landscape / #impinv industry • How to do due diligence on the investors • Capacity to communicate core values and product marketability • Thinking like an investorMoving Women-led Social Enterprises to the Next Level
#impinv #women #socentInvestors won’t invest if• Lack of rapport with the entrepreneur• no usp/innovation for the product/service,• entrepreneurs not financially committed• potential customers not identified• unrealistic financial projections• route to market unclear• too much capital required (or not relevant with stage you are at.)Moving Women-led Social Enterprises to the Next Level
#impinv #women #socent Make a Wave PI | Further Outcomes • Refined business models • More trust in peer support • Strength to lobby against bad governance • Less panic in building a team • Increased confidence levels • More discipline through regular coaching and co-mentoringMoving Women-led Social Enterprises to the Next Level
#impinv #women #socentThe non-negociable package to be ready:• Finance for non-financial directors• Basic due diligence pack, easy to amend• Exec summary / proof of concept• Social Impact Assessment Protocol• Speaking in public• Your media presence• Building vibrant AND relevant networksMoving Women-led Social Enterprises to the Next Level
#impinv #women #socent Click to open Make a Wave portfolio with key learning and previous hosts and participants http://issuu.com/dubaxango/docs/makeawave_2011? mode=window&backgroundColor=%23222222Moving Women-led Social Enterprises to the Next Level
#impinv #women #socentOpen presentation about the next Make a Wave Pre Incubator’s process, how toenter, what you will get, etc.http://prezi.com/pfal-h8w1jyo/make-a-wave-ii/Moving Women-led Social Enterprises to the Next Level
#impinv #women #socent You want to be one of the next fellows? Apply here: http://www.ogunte.com/MakeaWaveII_BusinessDiagnostic.doc You want to be one of the Angels? Read about the process here: http://www.ogunte.com/MakeaWave_II_Terms.pdfMoving Women-led Social Enterprises to the Next Level
#impinv #women #socent servane mouazan firstname.lastname@example.org 07932982379 @ogunte www.ogunte.comMoving Women-led Social Enterprises to the Next Level