Rebecca Rozencwajg from LaunchVic shares success stories from women-led startups and asks their tips to others, highlighting the need for more investment to flow to such businesses.
This year, Conserving Beauty launched Australia’s first waterless beauty brand in Mecca stores nationwide. At the same time, UrbanTech company Neighbourlytics created social analytics to inform the planning legacy of the FIFA World Cup precinct in Qatar. Verve Super launched a brand-new money course to help empower its 5,000 members and counting, and Smileyscope launched a VR solution to help kids cope with fear of needles at vaccination hubs across Victoria.
What do these startups have in common? Well, incredible women founders for a start. But they also call Victoria home, where they’ve received investment from LaunchVic’s Alice Anderson Fund for women-led startups.
Our trailblazing founders celebrated many business milestones in 2022, and it was a true privilege for us at LaunchVic to cheer them on as investors and passionate supporters.
In fact, we’re celebrating too. In its first year of operation the Alice Anderson Fund has supported 20 women-led startups. That’s gone on to activate another $4.7 million in direct investment and more than $31 million in co-investment from private investors. More than 120 jobs have been created – three-quarters of those secured by women – as well as more than $130,000 in export revenue and growing.
It’s remarkable to see how investing in women-led startups is contributing to the economy. And with an influx of founders seeking support, we’re looking likely to deploy our $10 million funding goal well ahead of our 2024 target.
But there’s a shocking investment gap we need to close
We often hear about the gender wage gap in Australia, but many don’t realise there’s a investment gap for women-led businesses too. A Deloitte report commissioned by SBE Australia shows that only 22 per cent of Australian startups are founded by women – and shockingly, only 0.7 per cent funding to startups went to women-founded companies in FY22.
There’s a significant and frankly unacceptable investment gap between men and women-led startups, which are grossly underrepresented in terms of venture capital and angel funding. Access to funding was the most common barrier to growth according to 39 per cent of women founders surveyed by Deloitte, which highlights just how challenging scaling a business can be.
It comes despite a Boston Consulting Group (BCG) study that found women-founded startups produced 12 per cent higher revenues annually, while using one-third less capital than their male counterparts.
Not only does the investment gap set women back, but it also slows down the economy.
BCG also found that if women and men participated equally as entrepreneurs, global GDP could increase by up to $5 trillion.
And as we’ve seen from the Alice Anderson Fund results so far, these businesses go on to create jobs that particularly benefit women. This cycle undoubtedly plays an important role in closing that all-important income gap.
At LaunchVic, we’ve seen an influx of women-led Victorian startups seek investment into their early-stage ideas and scaling businesses. They’re determined to succeed despite the long road ahead. And there’s nothing better than to hear from founders directly about their experiences on the entrepreneurial journey.
Jeanette Cheah, HEX
If you could say one thing to potential investors in regard to backing a woman-led startup, what would it be?
Don’t back us just because we’re female. Back us because we’re more likely to generate outstanding investment returns, run capital efficiently and build values-led companies with great team culture. And back us because it’s in the interest of the global economy to unlock the potential of underrepresented leaders.
Christina Hobbs, Verve Super:
What advice to you have to potential investors about backing in women-led startups?
Make space in your portfolio for the most common types of women-led businesses – that being businesses that have a social impact. These startups have a high likelihood of success and are often striving for strong returns without aiming to be unicorns.
Belinda Buckley at HOOGA
What advice would you give to other woman-led start ups looking to raise funds next year?
Draw upon your networks – I can’t understate the importance of relationships. A sound business strategy with a unique proposition is important, but don’t be afraid to ask for people for introductions that facilitates access to the organisations and expertise you need. People have been very willing to help and are very excited by our product. This is one area where the Alice Anderson Fund has really assisted our business, through the facilitation of introductions to expertise, talent and the events sector in which we operate.
Lucinda Hartley, Neighbourlytics
What has the support of Alice Anderson Fund meant for your business? What has it enabled you to do / what will it enable you to do?
Support from the Alice Anderson Fund comes at a time when Neighbourlytics is maturing as a business and ready to take on more complex deals and solve more complex problems. It’s enormously encouraging to be supported by Alice, who brings a whole army of support with it from high level networks and a cohort of extremely impressive founders.
In 2023, Alice Anderson’s mission carries on
When we named the Alice Anderson Fund after a trailblazing mechanic who founded the first all-woman garage workshop in Australia in the 1920s, we knew we had a legacy to uphold.
We’ve seen incredible results with the fund so far and remain committed to supporting women-led businesses with high potential in 2023. We’re particularly interested in closing the investment gap that exists at the early stages of a startup.
So, for women with big ideas at the Angel investment stage, take in the wise words of our flourishing Alice Anderson Fund portfolio founders. It’s time to open up your black book of contacts, get talking to investors and back yourself in.
There are agencies, networks, advocates and investors all across the country who want to hear from you and help enable your successes to come.
You’ll bring your big ideas to life, help close the investment gap, create new jobs in the economy, and ultimately support other women along the way.
You can read more on LaunchVic’s Alice Anderson Fund, here.