Investment Readiness For 100 Women-led startups in Ghana
Startup companies including women-led startups frequently face challenges when raising external funding because, among other factors, they are not considered to be 'investor-ready'. The Big Deal reports that only 0.95% of the funding raised by African startups went to startups founded or led by a woman. As cited by Quartz reports, the reason for Investors widely known preference for investing in more male founded startups over female founded startups is due to what is referred to as “confidence gap” between male and female founders. This is where most female founders are supposedly not as confident in pitching convincingly to investors and in expecting their companies to be profitable in the long-term. Thus, it is evident to say that women-led startups have a very low level of investment readiness.
Several factors contribute to the lack of investment readiness. These include the resistance of entrepreneurs to transfer ownership and company control to investors. There is also the insufficient knowledge on the entrepreneur side on the necessary preparations to be investment ready as well as little understanding of what investors are looking for when considering an investment. There is also the different company valuation estimates between the entrepreneur and investors, and finally low appeal of business proposals from an investment perspective and shortcomings in business plans or pitches
In order to increase the likelihood of achieving the success of a startup attracting investments, it is key to build a strong business case, which is aligned with the investors' preferences and goals.
Our solution to this challenge is a training program that provide women entrepreneurs with the resources and support they need to confidently and successfully secure funding for their businesses, breaking down barriers and increasing gender diversity in the investment landscape.
This training program typically covers various topics, including:
Business Planning and Strategy: Participants learn how to develop a solid business plan that outlines their company's goals, target market, competitive advantage, and financial projections.
Financial Management: Women entrepreneurs receive training on how to manage their finances effectively and create financial projections that accurately reflect the potential of their business.
Pitch Development: Participants are taught how to create an effective pitch that showcases their business and convinces potential investors of its potential for success.
Networking: The training program will include networking opportunities, allowing women entrepreneurs to connect with potential investors, mentors, and other entrepreneurs in the same industry.
Legal and Regulatory Issues: Participants are provided with information on the legal and regulatory requirements for securing investment and how to navigate these challenges effectively.
This training can have a profound impact on the lives of women entrepreneurs by empowering them to take their businesses to the next level, creating economic opportunities for themselves and their communities, and breaking down barriers to investment and success in the following ways:
Improved Economic Empowerment: By providing women with the knowledge, skills, and support they need to secure funding for their businesses, this training will help to increase their economic empowerment and financial stability. This, in turn, can lead to improved living standards for them and their families.
Increased Entrepreneurial Success: With a better understanding of how to develop a solid business plan, create an effective pitch, and navigate the legal and regulatory requirements for securing investment, women entrepreneurs are better equipped to succeed in their businesses. This increased success can lead to job creation and economic growth in their communities.
Improved Access to Capital: Women entrepreneurs often face barriers in accessing capital and securing funding for their businesses. By providing them with the tools they need to be investment-ready, this training can help to break down these barriers and increase their access to capital.
Encouragement of Gender Diversity: The investment landscape is historically male-dominated, and women entrepreneurs often face gender-based discrimination when seeking funding. This training can help to address these challenges and encourage greater gender diversity in the investment landscape.
Developers in Vogue has the capacity to carry out this project and make an impact, we have a staff that has worked on internationally funded projects like "Digital Skills Training for 100 Women with Disabilities," which was fully funded by the US Embassy.
Developers in Vogue is made up of a team from diverse backgrounds whose combination of technology expertise, knowledge of the entrepreneurial ecosystem, wide reach, and commitment to social impact positions us well to deliver an effective and impactful investment readiness training program for women entrepreneurs.
We have a deep connection with the women in our communities through our community our online community and educative programs for women entrepreneurs. Our programs and solutions are designed based on feedback from the surveys we take from our community at the end of every quarter.
- Provide new ways to accurately assess credit-worthiness of MSMEs and individuals, including methods that reduce bias against borrowers who have traditionally lacked equitable access to credit
- Ghana
- Pilot: An organization testing a product, service, or business model with a small number of users
In our maiden edition of this project of providing investment readiness for entrepreneurs, we had 28 participants; 3 males and 25 females, and based on our survey, we discovered that women were more at a disadvantage when it comes to access to funding, hence the decision to invest more in the future of African women entrepreneurs in subsequent training.
For this project, we would like to seek support in the following ways from the MIT Solve team
Financial support: We would want support in the form of direct funding to help with their operational costs such as running training programs and paying staff involved.
Technology support: We would want MIT solve to offer their technology resources and expertise to us, such as providing access to software, hardware, and online platforms that can support the training program.
Volunteer support: We would also want MIT Solvers to volunteer their time and skills in assisting with training sessions, mentoring, or providing technical support.
Awareness and advocacy: MIT solve can help raise awareness about our mission and its programs, and advocate for its cause. This could include sharing information on social media, hosting fundraising events, or speaking at events to promote our work.
- Financial (e.g. accounting practices, pitching to investors)
- Human Capital (e.g. sourcing talent, board development)
- Technology (e.g. software or hardware, web development/design)
There are several innovative aspects to Developers in Vogue having a training program specifically focused on investment readiness for women, including:
Filling a Gap: One of the primary reasons this type of program is innovative is that it is designed to fill a gap that currently exists in the market. Women entrepreneurs often face unique challenges when it comes to accessing funding and investment opportunities, and programs like this can help bridge the gap by providing them with the tools and knowledge they need to succeed.
Empowering Women: By focusing on investment readiness specifically for women, this type of program can help to empower women to take charge of their financial futures and pursue their entrepreneurial goals with confidence. This can have a ripple effect, helping to close the gender gap in entrepreneurship and investing.
Addressing a Key Barrier to Success: Access to funding is a critical barrier to success for many women entrepreneurs. By helping women to become investment-ready, this type of program can help to remove this barrier, enabling more women to secure the funding they need to grow and scale their businesses.
Our impact goals for the next five years include:
Increase access to tech skills education and training for women: The first impact goal is to increase the number of women who have access to quality tech skills education and training. One strategy to achieve this goal would be to partner with organizations that work with women entrepreneurs and provide them with access the training programs.
Improve the gender gap in entrepreneurship: Another impact goal is to improve the gender gap in entrepreneurship by increasing the number of women-led businesses. One strategy to achieve this could be to offer mentorship programs that connect women entrepreneurs with experienced business leaders who can provide guidance and support.
Increase awareness of the importance of diversity and inclusion in tech: An impact goal woule be to raise awareness of the importance of diversity and inclusion in the tech industry. One strategy to achieve this could be to create a thought leadership platform or content series that highlights the achievements of women in tech, challenges faced by women in the industry, and best practices for promoting diversity and inclusion.
To achieve these impact goals, the Developers in Vogue intends to partner with organizations that support women in tech, collaborate with businesses that prioritize diversity and inclusion, and leverage technology to deliver training and education programs that are accessible and affordable to women entrepreneurs. Additionally, we would focus on building a strong community of women entrepreneurs who can share their experiences, provide support and mentorship to one another, and collaborate on projects and initiatives that promote gender equality and diversity in tech.
- 5. Gender Equality
- 8. Decent Work and Economic Growth
- 10. Reduced Inequalities
To measure the impact of these goals, we would use a variety of methods, including surveys, focus groups, and data analysis. Additionally, we collect feedback from program participants and use this information to refine and improve the program over time. By measuring the impact of these goals, the we are able to demonstrate the value of its programs and continue to improve its offerings to better serve the needs of women entrepreneurs.
Theory of change for investment readiness for 100 women entrepreneurs in Ghana.
Input: The investment readiness training program is designed for women entrepreneurs who are seeking to raise capital for their businesses. The program is led by experienced investors, business leaders, and entrepreneurs who have a track record of success in securing funding and growing businesses.
Activities:
Comprehensive training: The program provides comprehensive training on key aspects of fundraising, including preparing a pitch deck, identifying potential investors, negotiating term sheets, and managing investor relationships.
Access to mentors: The program provides access to experienced mentors who can provide guidance and support throughout the fundraising process.
Networking opportunities: The program provides opportunities for participants to network with investors and other entrepreneurs, with the goal of expanding their professional networks and finding potential investors.
Outputs:
Improved knowledge and skills: Participants in the program gain a deep understanding of the fundraising process and develop the skills they need to create a compelling pitch and negotiate with potential investors.
Expanded network: Participants in the program build relationships with mentors, investors, and other entrepreneurs, which can help them to access new opportunities and build a stronger support system.
Outcomes:
Increased investment readiness: Participants in the program are better prepared to raise capital for their businesses, which can increase their likelihood of securing funding and growing their businesses.
Increased access to capital: By improving their investment readiness, women entrepreneurs may be more likely to attract the interest of investors and secure funding for their businesses.
Impact:
Economic empowerment: By supporting women entrepreneurs to raise capital and grow their businesses, the program can contribute to economic empowerment for women and their families.
Improved gender equality: The program can also help to address gender inequality in entrepreneurship by supporting women to access the funding and resources they need to succeed.
There are a number of technologies that would be used to support investment readiness training for women entrepreneurs. Here are a few examples:
E-Learning Platforms: Online platforms to provide access to training modules, videos, and other educational content that can be accessed from anywhere, at any time.
Virtual Coaching and Mentoring: Online coaching and mentoring would provide participants with personalized guidance and support throughout the fundraising process. Technologies such as video conferencing, instant messaging, and email can enable real-time communication with mentors and coaches, regardless of their location.
Online Pitch Competitions: Online pitch competitions would provide women entrepreneurs with an opportunity to practice their pitch skills and receive feedback from investors and mentors. Technologies such as video conferencing, online presentation tools, and online voting platforms can enable the competition to take place virtually.
Data Analytics: Data analytics can help to identify the key metrics that are most important for measuring the success of the investment readiness training program. By tracking data such as participant engagement, completion rates, and fundraising outcomes, the program can continually improve its offerings and tailor its approach to meet the needs of its participants.
- A new application of an existing technology
- Internet of Things
- Ghana
- Nigeria
- Nonprofit
Our approach to incorporating diversity, equity, and inclusivity into our work include:
Building a diverse team: Building a diverse team that includes people from different backgrounds, cultures, and experiences is a critical step in promoting diversity, equity and inclusivity within our organization.
Engaging with diverse communities: Engage with diverse communities and stakeholders to understand their needs, challenges, and perspectives. This is achieved by conducting focus groups, user testing, and other forms of engagement to ensure that our service is relevant and useful to the target audience
The business Model for Developers in Vogue are
Mission and Vision: Empowering and educating women in the latest technological skills and tools and providing access to educational resources, tools and training to help women acquire new skills and knowledge, and support them in their career growth in the tech space.
Revenue Streams: Our revenue model generation include various sources such as donations, grants, sponsorships, and partnerships and charging a fee for access to premium courses, and recruitment services.
Target Market: Women 18-35 years from all backgrounds, particularly those who face socio-economic barriers to STEM education and tech skills.
Educational Content: This include online courses, webinars, and workshops that cover a wide range of topics such as leadership, entrepreneurship, financial literacy, and career development. The content are engaging, interactive, and tailored to meet the needs of women.
Partnerships: Build strategic partnerships with other organizations and institutions to expand its reach and impact. This include collaborations with educational institutions, corporations, and other nonprofits that share a similar mission and values.
Marketing and Outreach: This include social media campaigns, email marketing, and search engine optimization to enable us reach a wider audience.
- Individual consumers or stakeholders (B2C)
ur revenue model generation include various sources such as donations, grants, sponsorships, and partnerships and charging a fee for access to premium courses, and recruitment services.
In the past three years, we have raised over $50,000 through grants to enable us run successful programs.