Meet the amazing female founders launching on Ethical Equity

This week is International Women’s Day, which shines a spotlight on the innovative and inspiring female founders. It’s not hard to find examples of women like this, yet they still represent only a fraction of business owners in the UK.

A major part of the problem is that female-led businesses are less likely to be funded than those founded by men. A 2021 report by Work-Bench confirmed as much: just 25% of start-ups receiving funding included at least one female founder. For enterprise software companies, the number plunged to just 1.9%.

So, as we celebrate this year’s International Women’s Day, we’re thrilled to introduce the first round of start-ups to be listed, during March 2022, on Ethical Equity – all with female founders. 

It's clear we need to challenge the status quo to see meaningful change around equality of funding. Part of that process is understanding the barriers that female founders face when they seek investment.  

What are the main pain points in getting seed investment as a female founder? What support do women need to build their networks and what needs to change in the ecosystem? 

We spoke to some of the founders launching on Ethical Equity to find out.

Keri Andriana, Amschela 

Amschela is a vegan handbag brand that aims to make the high-end luxury accessory market more accessible. Through affordable price points, its customers can experience luxury items at a realistic price. 

The brand also acts as a vehicle for young people from non-traditional backgrounds seeking access to the fashion industry.

Amschela is listing on Ethical Equity to raise funds to stabilise the company’s operations and business models. They also aim to scale and grow the business across domestic and international markets, develop signature lines and invest in R&D as a new vegan brand. The company is aiming to raise £250-£300k.

“I started a business knowing that I’m already at a distinct disadvantage by being a female and also being Black. Recent research by Extend Ventures shows that only 0.24% of Black founders get investment and that figure drops again as a Black female,” says Keri.

“The pool of investors are predominantly white males in my experience and it appears that the mirror effect of being comfortable investing in someone who looks like you prevails. 

“I’ve found building a network quite difficult as it’s often difficult to decipher those who really have your business’s best interests at heart. But I’m steadily growing and developing a good network of people who have offered some amazing support and even become good friends. 

“Funding and investment has traditionally been steeped in male candour with females getting little or no recognition for business acumen. This misconception has naturally overflowed into the decision making when it comes to applications for funding and investment from female founders. 

“The bias surrounding the capabilities of females is what needs to change in the ecosystem. Decision makers need to look at the business itself with the gender of the business owner removed from the process to make it more of an equal playing field.”

Lucy Hall, Loanhood

Loanhood is a fashion rental app that encourages people to experience fashion in a way that’s kinder to the planet. Its marketplace provides an alternative to the current “take, make, waste” model, pushing people to use what they already have and creating a more circular fashion ecosystem.

Founder Lucy Hall is looking to raise £250k in her first investment round with Ethical Equity. £150k is already committed and £100k of EIS-compliant funds are still to be raised. The funding will pay for continued development, staff, and testing of different marketing methods. 

“It’s been really interesting building our investor network. I love meeting new people and through the process I’ve met so many interesting individuals from angels, VCs and advisors to fellow founders,” says Lucy.

“As this was our first funding round there was a lot to learn on the job. Investors want to see traction but we need the money to spread the word and build traction. What traction looks like also depends on who you are speaking to, so you have to be flexible.

“From my experience, when you’re pitching a fashion business aimed at Gen Z, it can be hard for investors to grasp the idea – particularly if they’re over 40 and male. If you can't relate to the business idea or the founder, that's two marks against you before you’ve even spoken about the business model or financials.

“Having more female founders as investors will help but that will take some time. We need successful female founders who have exited to join the ranks of VCs and angels – but we need to invest in them first. It’s a bit chicken and egg.

“From the outside it looks like investors invest in people that look and sound like them; they are relatable. Once we have more ex-female founders investing in businesses, that might change things. We are lucky to have found investors who have that start-up mentality and believe in what we’re doing.”

Loanhood founders Jen Charon, Lucy Hall and Jade McSorley

Surlender Pendress, The Love Writing Company

The Love Writing Company is on a mission to help children love writing from the start through fun, engaging, age-appropriate writing resources that are ergonomically designed.

The ethically sourced products include Handwriting and Alphabet Practice Books and Cards to help children learn letter and word formation, build pencil control and establish a solid writing foundation. 

The company is aiming to raise £100-£150k in this round. The money will be used to launch in the USA through a new website, Amazon platforms and US retailers. Investment will also be made in innovative new products and a subscription service.

“Investment is key to launching into new sectors especially for a unique product like ours. It’s a physical product in a world where tech seems to be more attractive to many investors. I’ve found investment is very much biased towards tech companies and this has been a pain point when speaking to syndicates,” says Surlender.

“I’ve found it very hard to seek support or find other female entrepreneurs who have successfully raised seed investment, especially in the ethnic minority community. 

“As a female founder, I’ve been wary of asking for funding and been underprepared for the prevention questions that I’m more likely to get asked as a woman. 

“Female founders need better support for their businesses by having access to leadership and accelerator hubs focused on female-led businesses. If female founders were well supported, we could contribute more to the global economy whilst helping to shape the world with our vision of the future. 

“I’ve joined local networks and organisations to connect to a wider community. Having the right network can save you time and money, but also support your mental health as you can share your peaks and lows with like-minded people. 

“I’ve also been lucky with programs such as Natwest Accelerator and Aston Business Growth, where I’ve been able to build a good network I can turn to and find answers or new connections.”

Connect, raise and grow with Ethical Equity

If you’re a female founder or come from another underrepresented background, and you’re looking to make connections with investors, we can help.

Our ethical framework is open to all. Register today and find out how our clear, open and transparent approach can help you to find the funds you need.

This post is for awareness only and is not for financial promotion. If you are unsure please seek independent advice.