Borski fund proves: women are successful entrepreneurs

Worldwide, several countries have policies when it comes to equity in bringing in investments. The Netherlands does not. And the figures on this may be an expression of that. "Of all investments, 1.6 percent goes to female startups. That is extra bad when you consider that it is often indirectly government investment. There is apparently too little attention to diversity there. And so there is a brake on all kinds of innovations.''

So says Simone Brummelhuis. She is founder of the Borski Fund, a VC fund that focuses specifically on women innovative entrepreneurs. That such a separate fund is needed actually says a lot. ,,There is quite a bit going on, the situation is improving, but it is going very slowly. An example? A recent report shows that women seeking funding have 60 percent more meetings and end up raising 21 percent less capital.''

Bad choices sometimes understandable

The key question, of course, is: how can that be? ,,Especially when you know that all the figures show that statistically, women entrepreneurs make more returns for their investors with their investment. It has to do with all sorts of things. One important factor is that the way men present themselves on average in conversations for funding apparently inspires more confidence.''

This certainly also has to do with the investors. ,,Who mainly ask men questions about the future and women more questions about their past. And it is also quite understandable sometimes. I understand that as an investor you are more inclined to put your money in a middle-aged man who has already had five companies than in a woman who is just starting out. Still, that's certainly not always the best choice.''

Point remains that far fewer female startups apply for money than male ones. According to Simone Brummelhuis, that has a lot to do with the nature of women. ''There are differences, you have to be that honest. A woman who has received a rejection is upset about it. A man just tries again. It's like a girl who gets a 6 on math. She thinks: I'll drop that subject. A guy thinks: fine, that can only get better.''

Making funnel wider

Because of the differences, it is imperative that women be approached differently than men. This is also why Simone Brummelhuis initially created The Next Women (now led by Rixt Herklots), an organization that provides access to capital, programs, resources and networks to women entrepreneurs. ''We want to widen the funnel, also reach women who don't choose the entrepreneurial path by themselves. We encourage them to take the plunge, to initiate growth, to really go into business.''

That doesn't come naturally. ''You have to go to them. We scout all over the country. At universities and colleges, for example. We offer a network, programs for women who want to continue. And now we are so well known that more and more women come to us.''

And then the time may come when those entrepreneurs need funding. ''We look at the same things with the Borski Fund as other investors. We invest in very ambitious entrepreneurs. We look at the plan, the finances. We examine team dynamics with our science-based human capital scan. And we have an eye for other innovations. Our emphasis is not always on rapid growth, more also on the whole picture. We know how women think and act, we know their motivations and concerns. Women sometimes do business in a different domain than the enterprise tech guys. That doesn't matter as much with us. In fact, it's often an advantage. And yes, that certainly has to do with the fact that some seventy percent of our investors are women. That makes for more understanding between them.''