Challenge or Conform? Breaking the Surface as a Female Founder

Although women are making waves in the entrepreneurial world, the undercurrents of inequality seem almost as strong as ever.

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In 2019, the Global Entrepreneurship Monitor reported that 42% of entrepreneurs globally were women, a significant increase from previous years. Research indicates that companies led by women often outperform those led by men, showing higher returns on equity. Even when a business isn’t woman founded, startups with at least one female founder outperform all-male teams, generating 63% more revenue. So why, then, do female founders of VC-backed companies raise only 2% of the venture capital invested annually?

Despite making up a significant portion of entrepreneurs, female founders received only 2.3% of the total venture capital funding in 2020 -- one year after the Global Entrepreneurship Monitor recorded their 42% statistic. Many women face challenges accessing capital, with 66% reporting difficulties compared to 45% of men. And, though roughly equal in numbers to men when starting their careers, women who occupy entry level positions often lose out on promotions in favor of their male counterparts.

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Because of this disparity, many female founders have come up with creative strategies in order to tackle the challenges of sexism. Co-founders Penelope Gazin and Kate Dwyer faced a lot of doubt and condescension when launching their alternative online art marketplace, Witchsy (think Etsy, but more curated). To combat all the raised eyebrows and skepticism, they chose to invent a fake male co-founder named Keith Mann. Keith wasn’t real, but the respectful response he received over emails and communications with investors had a huge impact on the trajectory of their business. Their clever approach calls to mind generations of female writers like the Bronte sisters who used pseudonyms in order to publish and circulate their work, evading the criticism they would otherwise receive. Though much has changed for women since the 1800s, it seems this practice is as effective as it once was.

As far as we’ve come, it still feels like women in the industry must exhibit twice the exceptionalism in order to receive half of the trust and respect that a man would naturally receive. These statistics, and stories, can feel pretty depressing at times. Still, necessity is the mother of invention. We’ve learned the ingenuity that women bring to the business world is crucial, and being faced with these challenges pushes us to think in brand new ways. 

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So while the fake male co-founder approach may work for now, what can we do to create lasting change for every woman in this industry? There’s everything we’re already doing; many women who have already “made it” have stepped up to crowdfund other female VC’s just starting out, and the conversation surrounding sexism has been educational. But these actions, although progressive and encouraging, will not fully take effect for another 48 years. 

Perhaps it’s time to try out a radical solution and remove the question of gender entirely from the startup equation. Picture this: within the first two years of starting your business, possible investors won’t see your headshot or read your pronouns. Instead, what shows up on your website are your ideas, inspirations, and aspirations for the future of your company. Images are crucial for relatability, so add some that show who you are without showing who you are; an image of the family member who inspires you most or some early prototype sketches. With more focus on the heart of your product, investors avoid any bias they may subconsciously have and instead fund the idea behind the face.

It’s not a perfect plan, but it may be a worthy experiment for those intent on challenging startup gender bias now (and not in 48 years). Beyond gender, focusing less on our physical appearances and more on our ideas may be a wise decision for many reasons. Tides are changing, and most consumers prefer a more authentic, real person approach. Ironically, hiding our faces may be what it takes to show clients and investors alike who we really are.