“Raising money is really difficult for female founders, and it’s even more difficult for Black female founders.” It is a strong, even scathing statement, but it is one I made in a recent debate about is in store for women founders in 2022, including myself, I am frequently asked to speak on huge, collective societal concerns centered in tech because I am one of the few Black female CEOs in the developer tools sector. It is a lot to carry, but I recognize the need of addressing these topics, as well as my voice, whenever I can. Even though I would like to be able to provide certain answers, I have many questions.
In the realm of technology, we all want to be a part of the next digital product that takes advantage of first-mover advantage and determines the future of the industry. This is especially true when it comes to raising funds. In addition, while we have seen some great changes in the developer tools area, with VC-backed financing following suit, I am concerned that we are at risk of mistaking technological advancement with the social improvement we so need. Women continue to lag behind. Nora Jones of Jeli, Window Snyder of Thistle Technologies, Edith Harbaugh of Launch Darkly, and Jean Yang of Akita Software, to name a few, are all exceptional female developer founders. There are also some amazing female angel investors and venture capitalists.
These the women I look up to as industry leaders – those who have overcome the challenges of donating or seeking money while keeping true to themselves. Female VCs should backed by limited partners, and funds should provide women the same benefits and latitude as men.
Despite the efforts of those of us who are attempting to build a name for ourselves in the dev tools area, the reality remains that white men dominate the dev tools industry. Simply thriving needs more attention to detail, energy, and time than is generally sustainable for those of us who do not fulfill those gender and racial criteria. We need to level the playing field, recognizing the current challenges that women face in order to prosper. We must ask some difficult questions.
Is not it true that we want to be able to raise money from people who look like us? Many female investors, on the other hand, are battling just as hard to see seriously as the female entrepreneurs they want to back. If we are all trying to prove our validity in the same social context, we are presumably all retaining the same risk aversion. This generates a self-fulfilling loop in which female investors take fewer risks, especially when investing in female founders, and raise less money than their male counterparts raise. What can we do to break the cycle?
Limited partners should back more female VCs, and funds should provide women the same benefits and latitude as men. Female venture capitalists should promote to partnerships so that they may write meaningful checks rapidly. I have seen firsthand the incredible impact of empowered female angels and venture capitalists interacting with others to help female founders; the sense of community and sisterhood they foster has the potential to transform the industry. This is where we need to focus and grow.
