Three Strategies Female Founders of Color Should Consider Using to Secure Funding for Their Startups

Black and Latina women founders received only 0.43 percent of the $166 billion in VC funding dished out to startups in 2020. That’s according to ProjectDiane, a biennial report on the state of Black women and Latina founders by the organization DigitalUndivided.

Two women who are beating the odds are Kelly Ifill, the founder and CEO of Guava, a neo-bank and community platform designed to serve Black entrepreneurs and small-business owners, and Evelyn Rusli, an angel investor and the co-founder and president of baby food brand Yumi. The two sat down with All the Hats editor Teneshia Carr to talk about the best strategies for overcoming the hurdles to getting funding as a female founder of color. Here are three that stand out.

1. Be prepared to hear ‘no’ and keep pitching.

Rusli says she receives probably hundreds of rejections when pitching to investors, but encourages founders to stay positive nevertheless. “I think you have to pitch a lot of investors in the beginning, where not everyone is going to say yes. In fact, you’re going to get many nos,” says Rusli. “For every no out there, there is a yes. If you believe so strongly in your vision and that’s why you took the leap, then you just have to continue to knock on those doors and try to find the angles.”

Ifill agrees and suggests that pitching is a numbers game — by pitching more, you’ll come to understand what resonates with investors best. “Some investors will give you feedback, so you can scrap from your pitch what’s not working and what you need to double click on,” she says.

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SOURCE: Inc, Xintian Tina Wang