Funding Your business

By: Lotte Frost, Kvinner i business

In Norway and the Nordics, we’re proud of the possibilities and services we offer female entrepreneurs and start-ups. And compared to other countries, there are a lot of governmental support schemes one can apply to in order to get both funding and support. But, and that but is quite big, in regards to funding it’s all about the men.

Only 0,1% of all investments are in female start-ups

There’s a long way to go. Only 0,1% of investments in the start-ups in Norway was allocated to all female start-ups and 0,1% for mixed genders. This is an important finding in the report, “The start-up funding report”, developed by Unconventional Ventures. So that leaves 99,8% of all capital funding business allocated to all-male teams. At the same time, 38% of all start-ups, are female. A huge mismatch, and a huge disappointment as the report from Unconventional states. And the same goes for Finland and Iceland.

It’s a paradox, that in the survey, “The female Opportunity Index 2021”, Norway is ranked number one, closely followed by Finland and Iceland. So, the possibilities are available, but not the money.

The results are a little bit better in Sweden, Germany, UK, France and Denmark, but still almost 90% of all funding is invested into all-male companies.

Men invest in men


So, who are the investors? Yes, they are also male. A total of 84% of all capital is raised by funds with only male general partner.
Most decision makers are male, whom are also overrepresented in senior roles. In Norway 13,9% of all chairman of the board, or should we start saying chairwoman of the board, are women. But the share of female CEO is increasing and is now 37% on Norway.

Kids is the most popular business

Most investors invest in female start-ups related to kids, wellness/beauty and fashion. In many ways traditional female industries. The over-all most popular industry to invest in is fintech, where all-women companies account for approximately 13% of the start-ups.

Time for action

We need action! Female entrepreneurs need to build a stronger position for the future. The authors of “The start-up funding report” reflects upon whether we need accelerator for investments instead of start-ups and they have some recommendations for moving forward:

-        Educate traditional avenues of investing

-        Promote more women to check-writing roles

-        Publish your own findings

So, all female entrepreneurs, we need to challenge the exciting funding patterns by educating the investors and report our results and learnings. We need to promote ourselves, our businesses and our learnings.

Good luck.

 

Sources:
https://report2021.unconventional.vc/
https://www.ssb.no/
https://n26.com/en-eu/female-opportunity-index


The Innovation Ecosystem

Article by Eszter Szabo
Woman / Business / Angels

The good news is that local players can build an innovative ecosystem. The bad news is that only local players can make it.

As we can read in the World Bank's study, there are five elements to a healthy functioning innovation ecosystem:

  • people,
  • infrastructure,
  • enabling environment,
  • economic assets and
  • networking assets.

But why is it an essential element to have more and more entrepreneurs launch their innovative startups? Because the ecosystem serves as a fuel, it either helps local startups fly or means a headwind slowing them. Let's see the five elements the World Bank identified one by one.

The People

People are the most important as they have the entrepreneurial spirit, maintain their university alumni network, have massive experience as employees, can be mentors or become mentees, represent access to talent for companies, and undergo various training programs.

The Infrastructure

If they are handy they serve as an enabler. Without it, start-up ideas abort. In Africa, the internet is less accessible than in Europe; therefore, Africans use mobile for innovation. Office space is vital as startups can host their employees and interact with each other. Startups want their headquarters downtown, where transportation is perfect. There are coffee shops available and event spaces for get-togethers and networking opportunities.

The Enabling Environment

Tax incentives and business angel investors have to be developed by different stakeholders and policymakers. You do not launch a start-up if you have to pay taxes of the company just registered. In developed countries, individuals can deduct some of their invested money from their income tax base. Grants are essential as enterprises are desperately in need of cash. IP (intellectual property) rights provide a safety net for your innovative solution. People have a significant problem with China, where IP protection does not exist. Your neighbor thinks they are just learning from you.

The Economic Assets

They consist of a large group from the Academic world around you, international and local companies, and service providers and funding institutions. Business angels represent the first professional set of investors with whom the founder meets. Their supportive approach to founders and ideas is super important.

The Networking Assets

They're available around where and whom one can meet. Events, meetups, co-working spaces, mentors, advisors, accelerators, incubators, hackathons, and start-up weekends are forms where you can become a success. Participation helps you better understand the business environment, the partners, and the other players.

Join the local innovation ecosystem to make it stronger w/ the unique experience you have, not to mention your financial means. Ok, a small fraction of it! You would make the local system more robust and find yourself in the middle of business creation!


WINGATE project- a perfect gateway for European regional cooperation

Between August 29-31, the delegation of the National Association of Entrepreneurs represented by Cristina Chiriac - President of ANAA, Nicoleta Munteanu - Vice President of ANAA, Viorica Puscas - Project Manager, together with other businesswomen from Romania, members of the association, made a work trip in the Republic of Moldova.

During the 3 days, several meetings were organized with important representatives of the Moldovan business environment as well as with representatives of state institutions and the Government.

The first meeting was on August 29 at the Romanian Embassy in the Republic of Moldova. The meeting was attended by Mr. Cristian-Leon Turcanu, Ambassador Extraordinary and Plenipotentiary of Romania in the Republic of Moldova, Mr. Adrian Berezintu, Minister Counselor and Mr. Claudiu Chelcea, First Secretary. During the meeting, the Wingate project was presented and the representatives of the Romanian embassy in Chisinau congratulated ANAA for the initiative and showed their availability and support in promoting the Wingate project in the Republic of Moldova.

On the same day, the ANAA delegation had a meeting with the leadership of the Organization for the Development of Entrepreneurship - ODA, which is subordinate to the Ministry of Economy of the Republic of Moldova. The institution's mission is to support the development of the domestic entrepreneurial environment, including small and medium-sized enterprises, by promoting the entrepreneurial culture, providing financial and technical assistance to companies, issuing financial and state guarantees, as well as ensuring business support infrastructure. On behalf of ODA, Mr. Dumintru Pintea, director of ODA, was present at the meeting, along with his team.

On August 30, the ANAA delegation also met with the board members of the Association of Women Entrepreneurs from Moldova. Sseveral aspects of the partnership framework were discussed, as well as good experiences aimed at promoting the Wingate project were shared. A beautiful opportunity to salute women who inspire and motivate through their own examples.

During the meeting, an exchange of views was made on challenges and proactive solutions to support business women, defend their rights and promote gender equality. Several projections of possible joint cooperation initiatives were also highlighted, with the aim of supporting the growth of female potential and its internationalization, the exchange of good practices and international expertise on the dimension of gender equality, the economic empowerment of women, the development of human capital by promoting skills and entrepreneurial culture, etc.

Also on August 30, ANAA signed a partnership agreement for the promotion of female entrepreneurship in the Republic of Moldova and Romania with the Moldovan Women's Platform. Mrs. Iulia Costin, President of PNFM spoke about the common challenges faced by women in the Republic of Moldova and those in Romania in terms of business development and the importance of strengthening the community of women leaders on both banks of the Prut for partnerships and mutual support.

The day ended with a Wingate Project presentation and networking event attended by over 100 successful entrepreneurs and amazing women eager to fight and gain as much knowledge as possible. We have created an amazing community and we are happy that we manage to grow it sustainably and harmoniously with each individual event!

On August 31, exactly when the Republic of Moldova was celebrating the Day of the Romanian Language. The Prime Minister of the Republic of Moldova, Mrs. Natalia Gavrilita, presented to the ANAA delegation the measures taken to reduce gender gaps in politics and public administration, their effects and a set of priorities for the future.

"I appreciate the efforts your organizations made in Romania to support the interests of female entrepreneurship, as well as the agenda dedicated to supporting the importance of entrepreneurial education. Our attention is now focused on the economic field and the priority is the introduction of a mandatory quota on the board of state companies. I believe that together we will achieve better results to put into practice the complex objectives of gender equality", said Prime Minister Natalia Gavrilita.

In the political space, the authorities of the Republic of Moldova managed to regulate the double gender quota with very good results. The 40% representation quota and the provisions for placing on the lists increased the number of women in the legislature of the Republic of Moldova in 2021, being the largest number of female deputies elected in the history of Moldova - 40.6% of the total deputies. Before the 2021 elections, the share of female MPs was 25%. This fact determined a significant increase in the level of gender equality in the political field, observed Gavrilita.

Prime Minister Natalia Gavrilita showed her interest and total openness to supporting and encouraging women entrepreneurs. We have established a set of common goals and will work together to achieve them. Our targets aim to increase the number of women in leadership positions, reduce the gender pay gap, strengthen future gender equality and entrepreneurship education. We will collaborate to calibrate the legislation regarding mandatory gender quotas in the boards of state companies, but also in the institutional environment. I congratulate the Chisinau government for imposing gender equality in politics and public administration, and I consider that they are an example of good practice for Romania", said Cristina Chiriac, president of ANAA.

The official meeting with Prime Minister Natalia Gavriliță was the last in a series of events and meetings aimed at promoting successful businesswomen from Central and Eastern Europe, the Wingate Project, to bring together leaders from the public and private sectors in an effort to to support female entrepreneurship.