Is the fundraising industry broken?

4 December 2023 | Newsletter

Welcome to The Fight for Fairer Funding newsletter where we share the latest in the fight for fairer funding in investment, raise awareness and provide education in line with our Mission. This newsletter from Funding Focus founder, David B. Horne, is part of the platform that sheds light on the uneven playing field that female and under-represented entrepreneurs of all genders face when it comes to raising capital for their businesses. We hope you enjoy it!

Read our latest edition below.

Almost all the Female Founders I interviewed for my book, Funded Female Founders, have raised money across a range of industries and in amounts varying from a few hundred thousand to tens of millions of dollars. Over my career, I have raised more than $140 million in debt and equity funding. It is based on these interviews and personal experiences that I set out a vision of the economic change which needs to happen to make fundraising fair.

So, the question is: Is the fundraising industry broken?

There are record-breaking amounts of capital pouring into the VC and PE industries. There is an ever-growing number of angel investors and there are new crowdfunding sites appearing in many countries around the world.

The fundraising industry is not broken per se; rather, the VC segment of the industry is — and to a lesser degree angel investors are — suffering from a myopic focus on trying to find the next unicorn.

In chapter 9 of Funded Female Founders, we look a little more closely at the business side of running a VC firm. I share an analysis example of how the fund would manage over a 5–10 year period, the split between the percentage of funds available to invest and their internal costs and fees, and explain why the VC industry is so fixated on finding the next unicorn.

While it is not broken, the fundraising industry still leaves a lot to be desired — especially for female entrepreneurs.

If you’ve been considering approaching a VC firm, it might be helpful to understand how it operates from a business perspective.

Do you have any questions related to VC’s or fundraising in general? Let me know in the comments below!

We look forward to bringing you more insightful information and to continue the Fight for Fairer Funding for female and under-represented entrepreneurs from all genders.

Until next time…

With love and gratitude,


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