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Smashing the glass ceiling in VC Funding and on the office

September
14, 2020

5 min read

The opinions expressed by the entrepreneur's contributors are their own.

The Covid-19 pandemic has expanded like a big bang the demand for tools that make working from home easier, pushing Zoom's valuation to over $ 80 billion, twice the overall valuation of the seven largest airlines in the world World . As chairman and president of the company that owns the TransparentBusiness SaaS platform, which Citigroup calls Top People Management Solution, I see an opportunity to create a company that is equal to Zoom. But as a founder I am faced with a glass ceiling that is difficult to crack: VC funds do not finance women entrepreneurs in the technology sector.

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To be precise, VCs only provide a meager 2.2% of their funds to startups with female founders. In 2018, total VC funding for female founders was $ 2.9 billion, which is $ 10 billion less than VC funding for an e-cigarette company, Juul. And for the founders of Latina, this percentage drops to a negligible 0.4%, according to PitchBook, as hardly any funds are available for IT projects.

In order to achieve my goal of making TransparentBusiness a synonym for the categories Business Transparency and Remote Work Management, I had to find another financing solution. Instead of relying on venture capitalists, I directly offered TransparentBusiness shares to individual investors around the world through a global private offering. I have raised more than $ 15 million and plan to raise an additional $ 1.1 billion by the end of next year.

Overcoming the gender bias of VC is just one of the challenges I face as an entrepreneur in Latina. I am happy to share my story with women who are faced with similar experiences.

Networking is a fundamental key to success

The size and quality of your corporate network can mean the difference between success and failure. My first investors were my industry contacts and my LinkedIn followers. You helped me get the ball rolling.

Trust is the basis for performance

If you don't have the confidence to raise significant amounts of capital, your chances of success are very slim. Women tend to increase the minimum amount required, usually much less than the $ 100 million that is typical startup funding, according to the New York Times.

Another way of thinking

By demonstrating leadership skills and the ability to manage a company's finances, women must break the stereotypes of being incapable of the art of negotiation or being unable to run businesses that are geared towards dominance.

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Build tech-driven businesses even if you're not an engineer

You don't have to be an engineer or a programmer to run a technology company. I have a degree in communications and my company is 100% technical. And my tech company is part of the creation of a market in the midst of explosive growth.

Empowerment of women

The growth of remote work will increase democratization in the labor market. This will promote women to a position in the workplace that takes full advantage of women's contributions to businesses of all sizes.

If we do not close the gender gap in the workplace by 2025, we will lose $ 12 trillion, which would add equality to global GDP. The information from the McKinsey & Company study confirms that equality goes beyond a social or moral obligation, but is also an economic imperative as the global economy expects a sustained recovery.

When women hold leadership positions, companies make 16% more profit than the management of a male CEO.

However, we are still faced with the reality that every second woman with children leaves their job due to a lack of flexibility.

Remote working creates this flexibility and enables women to balance their work and personal life. Without this option, companies cannot prevent the outflow of qualified women and thus the loss of resourceful and adaptable talent.

Black swans and unicorns

The world knew for years that we were slowly moving towards a global workforce that would be further and further away. Then the coronavirus pandemic changed everything. The trend towards remote work has been catapulted to the speed of light. It also became clear that entrepreneurs need to be ready to use Black Swan events as an opportunity to bring unicorns to life.

The big picture

The global economy is in the middle of a long, hard road back to the beginning of the year. It is inconceivable that full recovery will be possible without the full use of women as equal partners in the workforce.

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Remote working has the potential to destroy old world thinking when it comes to gender bias. The outdated emphasis on “face time,” where male managers encourage people to work long hours in the office, must give way to an objective assessment of employee performance and long-term potential to contribute to the growth and success of a company.

Women are experienced communicators and multitaskers. The importance of mastering these skills is compounded by the reality from home that the world wants to master.

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