I am delighted to share my interview with Sheena Allen on the topic of funding. Sheena is the CEO and founder of CapWay, a FinTech ecosystem of products and services aimed at providing financial access and opportunity to everyone.
Sheena and I talked about the difficulties women – and particularly women of colour – face when seeking funding, the potential reasons for why it is harder for women to receive funding, and her own experiences.
I’m endlessly grateful to Sheena for her insights!
what have your experiences been when seeking funding? How much of the pushback/rejection that you have faced do you think is down to bias (whether unconscious or otherwise)?
I have definitely received my fair share of no’s, as most founders do when pitching for funding. When pitching my fintech startup, CapWay, I knew raising capital would be an uphill battle for several reasons.
I was building something to challenge the traditional banking system and use technology to serve those who have been historically financially underserved. That takes time and money, as fintech is already a capital-intensive industry.
only a few hundred Black women have ever raised over a million dollars.
I knew my chances of going in and raising millions of dollars to do so were slim since statistics already showed that Black women raise roughly only 0.5% of VC dollars, and only a few hundred Black women have ever raised over a million dollars. However, I must say that the statistics are the statistics, and the only thing that other women of color and I can do is continue to shine a light on the issue. Even more importantly, keep building and pushing through.
why do you think women (particularly women of colour) receive less funding/struggle to get funding?
The first thing we must acknowledge is that the VC industry is male-dominated. Tech, overall, is a male-dominated industry, and the numbers we see regarding who gets the investment dollars reflect that. However, that is no excuse. As women, especially women of color, we have been fighting an uphill battle for a long time–never asking for special treatment but just equal opportunity and access to money to build our companies. Yes, more female investors and female-focused funds have come into play over the last few years, but it is still a struggle.
we can’t control the biases. we can’t control the industry “bro-culture£. those things are layers deep.
There isn’t one particular answer to why we struggle to fundraise, but I can say that those reasons are usually out of our control. We can’t control the biases. We can’t control the industry “bro-culture.” Those things are layers deep. However, I do know that female founders are building amazing, innovative, impactful, and game-changing companies. Unfortunately, we find ourselves penny-pinching, unable to scale, or shutting down because of less funding.
when speaking to male founders, how do you think their experiences differ?
I believe male founders are just given more leeway. Some call it conscious bias, and others call it subconscious bias, but whatever you want to call it, numbers don’t lie. Less traction, no product, investors investing in “what or who” they know, or whatever the case may be–I’ve heard from other founders and can attest that men get more funding with way less versus their female counterparts.
do you think female founders (particularly those with “female-centric” missions, such as FemTech companies) have different experiences post funding?
Yes, but I think it depends on from whom they have raised the investment dollars, and that will have some reflection on the post-investment support from that investor or investment firm. A female investor or angel who knows the female-centric industry that the company operates in will likely provide more support versus a large VC firm that may have invested from their “side fund” for women and minorities and look at the investment almost like “charity” funding.
have you ever considered bringing a man into the founding team to make it easier to receive funding?
I have considered it. I did not do it with CapWay, but I 100% considered it. I knew statistically that companies with male founders or co-founders received more funding, and so I considered it for that purpose.
how have you dealt with the rejection of seeking funding, and are there any resources you would recommend to help women prepare?
Eventually, you become used to getting no’s. I’m not saying it makes it easier to hear, but you kind of become immune to it. After all, raising money is a numbers game. It is a lot of pitches to investors, a lot of no’s or no responses, and then eventually, hopefully, you get enough yeses.
find your tribe.
My recommended resource for female founders, whether actively raising funds or not, is to find your tribe. Join a community for female founders, and lean into those whom you connect with the most. Find the one(s) who you relate to the most and help you personally and professionally because building a company can be a tough and lonely journey. Finding your tribe and being able to talk to and lean on other female founders who know the same pain and struggles, without question, make a difference.
what is the best piece of advice you received when looking to get funding?
The best advice I received was to find investors who align with you as a founder and with what you are building. You are already going to get a lot of no’s, and since time is of the essence, it is important to find the right people sooner rather than later who can provide the support and oxygen (money) needed for your company to grow and survive.
what is the piece of advice you would pass on to others based on your own experiences?
Be cautious when taking advice from anyone who hasn’t done or experienced what they are trying to give you advice about.
what is the problem you are most passionate about solving?
Honestly, it would be hard to pinpoint one thing. I would have to say that, in general, I am most passionate about creating inclusive, game-changing technology.
One World Trade Center, New York, NY 10007, Suite 48J