Concerned about the significant funding disparity affecting female tech founders, the Africa Female Founders Collective (AFFC) inaugurated its initiatives over the weekend. This move aims to enhance opportunities for female entrepreneurs or female-led enterprises within the African ecosystem to secure the necessary financial support.
Ibijoke Faborode, the Founder and CEO of ElectHer, established the Africa Female Founders Collective (AFFC) to emphasize the crucial role of women in business and leadership for a flourishing economy and society. Despite this, women entrepreneurs often struggle to unlock their full potential due to limited access to funding, among other challenges.
Compared to their male counterparts, female founders receive significantly less funding. According to a report by the data insight firm Africa: The Big Deal, startups with either a solo male founder or an all-male founding team secured 85% of all funding. Furthermore, when considering teams with gender diversity, 98% of the funding still went to teams led by or including at least one male founder.
The funding gap can be attributed to various factors. Blessing Adesiyan, the Founder of Caring Africa, who joined forces with Ibijoke for an event titled ‘Night With Nigerian Female Founders’—which also served as the AFFC’s inaugural event—highlighted that despite the increasing presence of women in the market space, they face challenges in gaining visibility where investors are looking. This issue is partly due to the traditional caregiving roles that women often assume, which limits their ability to engage fully in the entrepreneurial and investment communities compared to men, who are typically viewed as the providers.
Adesiyan advocates for addressing the caregiving responsibilities that disproportionately affect women, suggesting that support systems at home could free up women to pursue their professional ambitions more fully. “Women should receive support at home, which allows them the time to chase their goals and objectives,” she remarked.
Ibijoke highlighted the advantages that female founders gain through collective efforts. She believes that being part of a collective enhances their prospects with investors, offering a support system, mentorship, and a network of peers for accountability and motivation.
Success in women-led businesses often comes down to certain key qualities. Omotade Alalade, the founder of Moobi Baby, pointed out that structure and the discipline of maintaining accurate financial records are essential attributes, especially when seeking investment or funding from financial institutions. She observed that many female entrepreneurs do not manage their businesses’ records adequately. Alalade emphasized the importance of meticulous record-keeping and financial transparency from the very inception of the business.
Efe Braimah, Managing Director at CrossBoundary Advisory, added to the conversation by identifying key behaviors of successful female founders. These include making a deliberate effort to be present in settings where investors gather, thereby building trust and likability, demonstrating competence, and assembling a strong team.
“Your business structure is crucial, and if your financials are in order, investors will be more inclined to support you,” Braimah explained.
Jumoke Olaniyan, Senior Vice President of Business Development at FMDQ Securities Exchange Limited, pointed out the variety of funding sources accessible to entrepreneurs, including the financial market. This offers diverse levels of funding tailored to the growth stages of their businesses.
“Investors are on the lookout for new ventures and opportunities to invest in,” Olaniyan noted, highlighting the eagerness of investors to discover promising businesses to support.
