How is Borski Fund helping to close the funding gap for female founders?

Expert blog - 11 April 2024

Besides co-founder of StartGreen Capital, Laura Rooseboom is co-founder and partner of Borski Fund. This fund improves access to capital for growth companies with a diverse team and a female (co-)founder. In this blog, Laura shares her insights on the investment landscape and offers tips to start-up women entrepreneurs seeking venture capital.

Closing the funding gap

The Borski Fund is named after Johanna Borski, one of the first Dutch female investors. 'She is our role model, as she was a very active investor more than two hundred years ago and, among other things, helped fund the establishment of De Nederlandsche Bank,' Laura explains. 'Unfortunately, not much has changed in 200 years, because still only 2 per cent of investment capital goes to women-owned growth companies and 7 per cent to mixed teams. The rest of investments go to male-only teams.' The fund has therefore set itself the goal of closing this 'funding gap' as soon as possible. Laura: 'This is why Borski is the first tech and innovation fund in Europe to invest exclusively in women-led start-ups, from seed stage to scale-ups.'

Changing the investment landscape

'By investing, we not only want to reduce this funding gap, but also change the whole investment landscape,' Laura continues. 'We think that as more women build successful businesses and eventually sell them, three key developments will occur: 1) more female role models will emerge to inspire other women to start their own businesses. 2) these women are likely to invest in the new generation of women entrepreneurs; it is well known that most business angels started as entrepreneurs themselves. 3) Other, much-needed innovations will enter the market, such as femtech solutions. These innovations contribute positively to women's health and fill the gaps in medical care.'

Medical innovations

Unlike other funds, Borski Fund has no complaints about the supply of good female start-ups. 'There is certainly no lack of interest: around 600 entrepreneurs apply to us every year,' says Laura. 'We mainly look at tech companies with hefty ambitions.' Interestingly, a third of the start-ups and scale-ups that apply are in the medical field. Laura thinks this is because entrepreneurs often start a company to solve a problem or frustration they encounter in their work. 'I think among doctors and other highly educated medical personnel, the male-female ratio is more balanced; that proportionally leads to many start-ups by women in this field. Many other technical professions still employ more men. In my opinion, this is mainly a social issue. You can't do much about that as an investor. It will help if we regulate childcare better in the Netherlands.'

Tips based on experience

What advice would Laura give to start-ups with female and other underrepresented founders who are currently struggling to raise funding?

Tip 1: Find investors with mixed investment teams. Female investors look at companies differently from men and recognise different problems and opportunities.

Tip 2: Prepare well by talking to other founders who have already raised money before going to investors.

Tip 3: Be aware that investors will laud your forecasts, so don't be too modest in your projections and/or about the amount you want to raise.

Tip 4: Fundraising is difficult for everyone, it takes a lot of time and effort, so start on time when you still have enough money in the bank.

Tip 5: To reach your end goal, you have to keep an eye on the road towards it and not let setbacks throw you off track.

New fund, new opportunities

Laura is pleased that there is an increasing focus on the issues of equality, diversity and inclusion. 'But that doesn't mean the funding gap has closed. That is why we are working on a second Borski Fund. This fund will have the same goals as the first: more female investors, more female founders and more diverse tech innovations. Interested female investors and entrepreneurs are welcome to come to our office for a cup of coffee.'

This blog previously appeared on StartupCity Magazine: How to Diminish the Funding Gap for Female Founders

Also check out the website of: Borski Fund