There are signs it’s becoming easier for female-led start-ups to access capital to grow their businesses, at least in the early stages. But there is still work to be done before everyone is able to raise funds in an equitable way.

According to Australian Investment Council (AIC) research, female founders now feature in 42 per cent of angel and pre-seed deals and 29 per cent of subsequent seed funding rounds.

This represents record levels of female founders taking part in early-stage funding. More broadly, women run 35 per cent of businesses in Australia, according to ASBFEO figures.

However, there are real challenges when it comes to attracting capital as a female founder as the business matures, with the AIC’s research indicating representation of female founders drops in later funding rounds. Its data suggests only 19 per cent of founders are female in Series A rounds and only 16 per cent of founders are female at Series B and beyond.

Carla Penn-Kahn is a serial entrepreneur who has successfully exited two e-commerce businesses, Kitchenware Superstore and AGiftWorthGiving.com.au. Both were sold to bigger operators. Penn-Kahn is currently building Profit Peak, an operating system for profitable commerce businesses. She has advice for founders looking to attract capital.

“Female founders often carry imposter syndrome and, as a result, downplay both our past successes and the future outcomes we’re capable of driving. Be bold and unapologetic in how you share your mission, your vision and what you’re going to execute. Investors back conviction and momentum, so own your story and the scale of what you’re building,” she says.

When it comes to finding potential investors, Penn-Kahn suggests starting by having conversations.

“Networking is a powerful way to uncover opportunities. Within your own circle you’ll often find strategic angels or investor scouts who can open doors. The best introductions usually come through asking, so don't fear asking the question,” says Penn-Kahn

“The art is in your storytelling, your mission, vision, scale and impact. Why now and why you? Show, don’t tell, the traction to date, even if you’re pre-revenue. Your product evolution, customer validation and pace of learning can all demonstrate powerful momentum.”

As founder, what’s key when raising capital is to build connections in the angel and early stage venture community well before you need to raise.

“Investors rarely make decisions in isolation, they’ll often ask their network for references or informal feedback about you as a founder. The relationships you build in the ecosystem can directly shape how investors perceive your credibility and potential,” says Penn-Kahn.

When it comes to challenges female founders face when seeking investment, gender bias is real.

“In my own fundraising journey, I was often asked about my ability to take risks, as if being female somehow meant I couldn’t. I asked several male founders if they’d ever faced the same question and not one of them had. The best way to overcome bias is to stay grounded in your conviction, know your numbers and keep showing that strong commercial outcomes and ambitious thinking have no gender,” says Penn-Kahn.

One of Penn-Kahn’s investors is January Capital’s Alex Rankin. A serial investor who has provided capital to a number of different early stage ventures, Rankin try to back founders with businesses that have bold ideas that solve real problems. He’s especially looking for people with conviction and clarity of purpose.

“The best start-ups reimagine what’s possible and build the momentum to make it happen. Background matters less than mindset. We care about resilience, curiosity and the ability to adapt and lead through uncertainty, qualities that define exceptional founders,” he says.

Rankin believes mistakes are part of the journey, not something to fear, but to learn from.

“The real misstep is avoiding them altogether. The best founders move fast, reflect often, and turn every setback into insight,” he says.

According to Rankin, as an investor, you have to back founders beyond capital.

As the start-up market accelerates with better economic growth, expect more female founders to seek capital for their ventures in an environment where early stage ventures should flourish.