Investors’ community often have differing expectations or standards set for female founders compared to male founders. They face questions about their ability to balance work and family life or are subjected to scrutiny over their leadership style, says Priyanka Salot, co-founder, The Sleep Company.
“As a female founder, one of the biggest challenges I’ve faced is overcoming gender bias, especially in traditionally male-dominated industries like tech and finance. There can be differing expectations or standards for female founders compared to male founders, reflecting underlying biases in the investment community,” she said in an interview for DealStreetAsia’s latest report titled Female Founders in India 2023.
“To address these disparities, we need to foster a more inclusive and equitable ecosystem by promoting diversity in leadership, providing mentorship and support programmes for female entrepreneurs, and holding investors and institutions accountable for their actions,” Salot added.
Edited Excerpts:-
What led you to become an entrepreneur? How would you describe your entrepreneurship journey so far?
Becoming an entrepreneur was a natural progression for me. I’ve always been passionate about solving problems and creating something meaningful. As someone who struggled with sleep issues, I recognised the need for innovative solutions in the sleep industry. The birth of my first child in 2016 marked a turning point in my life. But soon after, I began having terrible insomnia and had trouble falling asleep. The problem grew worse with each passing day, necessitating the purchase of a better mattress. We kept looking for the perfect mattress and realised it didn’t exist. After conducting extensive research, we discovered that Indian mattresses are of lower quality than other brands. We realised that it needed to improve and become smarter. This heightened the urgency of bringing about change in the sleep industry. The Sleep Company was born out of this desire to make quality sleep accessible to everyone. The journey so far has been exhilarating, filled with highs and lows.
Building The Sleep Company from the ground up has been a tremendous learning experience, teaching me resilience, adaptability, and the importance of surrounding myself with a supportive team.
What are some of the biggest challenges you’ve faced as a female founder? What challenges did you encounter while fundraising? How did you overcome them?
As a female founder, one of the biggest challenges I’ve faced is overcoming gender bias, especially in traditionally male-dominated industries like tech and finance. There can be differing expectations or standards for female founders compared to male founders, reflecting underlying biases in the investment community.
“Female founders may often face questions about their ability to balance work and family life.”
Female founders may often face questions about their ability to balance work and family life or be subjected to scrutiny over their leadership style. These questions may not always be asked to male counterparts. However, I navigated these challenges by focusing on the strength of our business model, showcasing our traction and growth metrics, and building relationships with investors who value diversity and inclusivity.
Has the bias towards female founders improved in recent years? Have you seen a mindset change?
There has been some progress in reducing bias towards female founders, but we still have a long way to go. Fortunately, I have seen a positive shift in mindset among certain investors and stakeholders who recognise the value that diverse perspectives bring to the table. However, systemic biases persist, and it will require collective effort to enact meaningful change.
Do you think having male co-founders made a difference in your fundraising journey?
While having male co-founder may have its advantages in certain contexts, I believe that success in fundraising ultimately depends on the strength of the business idea, execution, and team dynamics. While some investors may have preconceived notions about leadership dynamics, I am fortunate to have co-founder who also happens to be my life partner (Harshil Salot) who prioritise collaboration and mutual respect.
Do you think that investors tend to have different expectations or standards for female founders versus male founders? Can you share any specific questions that are typically asked to female founders?
Unfortunately, there are still instances where investors hold female founders to different standards or ask inappropriate questions related to family life, commitment or leadership capabilities. However, I believe that the best investors evaluate founders based on merit and potential, regardless of gender. I have been lucky to have the best investors on board- Premji Invest and Fireside Ventures who have been supportive of our business and value the innovation that The Sleep Company has brought in.
What are some of the potential reasons for the gender gap in venture funding, and how do you think these can be addressed?
The gender gap in venture funding can be attributed to various factors, including unconscious bias, lack of representation in decision-making roles, and limited access to networks and resources. To address these disparities, we need to foster a more inclusive and equitable ecosystem by promoting diversity in leadership, providing mentorship and support programmes for female entrepreneurs, and holding investors and institutions accountable for their actions.
In the current environment, when funding will be more difficult to secure for most startups, could female founders find it tougher to raise capital?
In times of economic uncertainty, like the current environment, fundraising can indeed become more challenging for startups, including those led by female founders. The inherent biases and risk-averse nature of investors may exacerbate the difficulties faced by female entrepreneurs in securing capital.
“The inherent biases and risk-averse nature of investors may exacerbate the difficulties faced by female entrepreneurs.”
However, adversity also presents an opportunity for resilience and innovation. By staying focused on our goals, adapting to the changing landscape, and leveraging our strengths, we can overcome these challenges. The current economic climate undoubtedly presents challenges for startups seeking funding, and female founders may face additional hurdles due to existing biases and inequalities. However, adversity often breeds innovation, and I believe that female founders are resilient and resourceful, capable of navigating these challenges with creativity and determination.
How deeply has the funding winter affected your company’s fundraising and expansion plans?
We have been lucky to have been backed by the best investors — Premji Invest & Fireside Ventures which has complete confidence and faith in our business. Even during funding winter, we raised Series C of Rs 184 crore from our existing investors. This has prompted us to become more strategic, agile, and efficient in our operations. We remain optimistic about the future and are committed to pursuing sustainable growth opportunities and achieve our business goals and expansion targets as per the timeline set.
What’s the fundraising outlook for 2024?
While the fundraising landscape is inherently uncertain, I believe that opportunities will continue to exist for innovative and impactful ventures. As the economy recovers and investor confidence rebounds, there will be renewed interest in supporting promising startups. However, it will require perseverance, adaptability, and a strong value proposition to succeed in this competitive environment. We’re focused on strengthening our business fundamentals, building strategic partnerships, and continuing to innovate to meet the changing needs of our customers. Despite the challenges, we believe that with perseverance and determination, we can navigate through these turbulent times successfully.
What advice would you give other female entrepreneurs?
My advice to fellow female entrepreneurs is to embrace your unique perspective and strengths and never let anyone undermine your worth or potential. Surround yourself with a supportive network of mentors, peers, and advisors who believe in your vision and can offer guidance along the way. Remember that every obstacle is an opportunity for growth, and resilience is key to overcoming challenges in the entrepreneurial journey. Stay true to your values, stay focused on your goals, and never underestimate the power of perseverance.
