There is a prejudice that the world of venture capital is the men’s world. For companies headed by women or creating products for women, the investor attraction can be a rather frustrating challenge. Women may have startups with the expected profit of a billion dollars and still not being taken seriously just because people consider them not having enough experience in the business.
Janika Alvarez is the CEO of Naya Health, a company with a smart milk pump production, has faced this problem. Alvarez said that even at the very beginning investors turned down her offer to invest in the breast pump. Alvarez and her husband used to raise $6.5 ($9) million first, but then funding stopped, and they had to turn to Kickstarter. Meanwhile, investors sent more than one hundred million dollars to already shut down Juicero startup.
And such a situation challenges not only maternal goods, which, it seems, do not attract venture capitalists. Sophia Yen, CEO of Pandia Health, also shared her experience on this issue. Pandia Health is a startup that automates the contraceptives and various supplements delivery. Sofia claimed that the elderly white men of VC are simply not had appealed to what she is trying to sell.
Investors prefer to invest money mainly in projects that are connected with the spheres of their interest. And thus the startups which are related to women’s needs leave male investors indifferent. More and more businesswomen try to make their startups attractive for all the investors. And this position can change VC’s mind and influence their choice significantly.
We recently told you where venture capitalists invest and the reasons for this choice.