Top 10 Funding Trends and Opportunities for Female Founders

The events of 2020 have impacted lives and livelihoods in ways the world could never have expected. The impacts of the COVID-19 crisis have been larger than that of any previous crisis - and they materialized within weeks. Businesses in many sectors have had to pivot, adjust, and remap their growth strategy in order to survive. 

While there’s still so much uncertainty, this period has driven home the need for business solutions to real-world problems. It’s shone a light on some of our greatest challenges, such as climate change, inequality and workforce reskilling. 

Over the past months, world interest has increased in business with impact. Businesses that are purpose driven and are not ‘just’ about revenue. The perceived value of businesses with a social or environmental impact is rising, potentially meaning a new dawn of recognition for business as a platform for ‘good’.

Whilst businesses are feeling the effects, it’s no surprise that funders are being forced to make big changes themselves. They’ve had to shift focus and place a greater emphasis on community and economic resilience.

As we slowly control the virus, where do we go from here? What is on the horizon for funding as we approach 2021?

To help Female Founders growing businesses that provide innovative solutions to the world’s biggest problems, we’ve prepared a list of the Top 10 Funding Trends.

Top 5 Grant Trends

Micro-focus grants

One trend emerging right now is the acknowledgement that achieving world peace is beyond most grantmakers. Some are opting instead for a well-honed singular focus on one well-defined micro outcome goal. Micro, in this sense, does not mean small, or insignificant: it means narrowly focused. 

Automated decision-making

This is all about machine-assisted decision-making. You may shy away from the idea of handing control over to a robot, but automation can have its advantages; in fact, it can promote fairness. A machine does not get tired and will follow consistent rules – the same cannot always be said of human assessors. 

Data and outcomes-driven decisions

Privacy and data protection has become a hot topic around the globe. Grantmakers and their grantees are confident when it comes to getting the best out of data, using it to increase efficiency and results.

Flexibility for Grantees - get a quick-response

In these difficult and rapidly shifting circumstances, grantmakers are having to strategize how best to support their communities. Like the rest of us, grantmakers cannot know how this crisis will impact their resources in the future, but they are aware of what they have access to now and they are ready to take action. 

Diversity in Decision Makers

In order to enable lasting change, grant makers are empowering those closest to the problem to take the lead. Finally, funders realise that diversity in business is essential both because this is the right thing to do and because it is the smart thing to do. The people closest to the work know what’s really needed, which is why grantmakers are looking to innovative change agents to lead the way. 

Brand new Grants

There are a number of new grants available now to help organisations cope at this difficult time. They’re there to help adapt and sustain business operations, sustain employment and build resilience.

Top 5 Investment Trends

Climate Change & Humanitarian Issues

With global changes taking place around the social, political and environmental issues, the sectors that attracted more funding over the years are bound to shift. Climate change and humanitarian issues are attracting more funding in recent times as they take center stage around the world. 

Digital fitness & mental health 

As overall wellness becomes more and more popular, interest is growing in optimising technology for fitness & health in order to integrate with a busy and mobile lifestyle. Consumers are increasingly consuming services and goods in an on-demand or subscription model and digital fitness and health is no exception and will continue to be highly valued and attract investors.

Agritech

With the importance of food security globally, automation within this space is set to increase and the agritech sector is one to keep an eye on. Working towards solving the problems and challenges in the agriculture sector is vital and is a sector expected to continue to attract major investments in the years to come.

Healthcare & robotics

The concept of autonomous robotic surgical machines can seem straight out of science fiction however robotics technology is making its way into healthcare, and fast. Investors are recognising the enormous potential that these solutions can offer for improving patient care, expanding the reach of services, and reducing healthcare costs. With the changing world and need for social distancing and personnel shortages, robotics in healthcare is expected to gain traction. 

Artificial intelligence

New technologies such as artificial intelligence are prevalent themes in markets, with many companies in these sectors trading at lofty valuations, reflecting very optimistic growth targets. AI is creeping into every business, boosting productivity, customer service, sales, product innovation and operating efficiency. The technology is all about crunching reams of data from around the world, making sense of it and using the information to help businesses add services and operate more efficiently.

What do these trends mean for women in business? Well, anything we want!

Funding is certainly ‘open for business’. As grantmakers and investors look to revise the rules of the game, now is the time to optimise and identify growth opportunities to transform your business.

If you’re a female founder leading a purpose-driven business and want to understand how funding can expand your ability to activate change, we invite you to connect with us.