Think about the apps and digital tools you rely on every day. Do they truly understand and cater to your needs? For many women, the answer is often a frustrating 'no.' From period trackers that fail to reflect the symptoms of millions of women with hormonal or reproductive issues to fitness apps designed around a single body type, the tech industry has long overlooked the diverse experiences of women. These aren’t just minor inconveniences; they highlight a significant gap in product development, one that stems from a lack of diverse perspectives and a failure to deeply understand women’s needs.
Women-led businesses are stepping up to fill this void, creating digital solutions that prioritize inclusivity and demonstrate a profound understanding of female needs. From groundbreaking femtech innovations to platforms designed to empower female entrepreneurs, these businesses are reshaping the landscape. However, for these products to be truly effective, women must be involved not just as users or an afterthought, but as key players throughout the design, development, and testing processes.
The Funding Gap and the Need for Support
Despite their innovation and market potential, women-led startups face a significant disadvantage in securing funding. In 2024, these startups accounted for less than 2% of total venture capital activity in the U.S., a figure consistent with past years. All-women teams received only 1.9% of available venture capital funding in 2022, and over a 30-year period, their share has hovered at a mere 2.4%, highlighting a systemic issue rather than a short-term trend.
Several factors contribute to this persistent underfunding. Implicit biases in investment decisions often lead investors to favor entrepreneurs who fit traditional stereotypes (often male founders). This bias can manifest as investors valuing their own traits and subconsciously equating masculine characteristics with successful entrepreneurship. Women are also significantly underrepresented within venture capital firms, which limits investment in founders who don’t fit the conventional mold. Additionally, venture capital networks tend to be male-dominated, making it harder for women entrepreneurs to access crucial connections and referrals.
Read more about this in our interview with Peace Itimi of Founders Connect.
This lack of funding creates significant challenges, restricting women entrepreneurs’ from scaling their businesses, investing in research and development, and competing effectively in the market. Hence, community support through resources, mentorship, and networking becomes crucial in helping to overcome these barriers. Propel’s Community-as-a-Service (CaaS) model is designed to address this, connecting businesses with vibrant tech communities to gather critical insights, enhance awareness, and refine product-market fit.
Unique Perspectives and Needs
Women bring invaluable and often overlooked perspectives to product development, leading to the creation of more effective, inclusive, and user-centric solutions. This is particularly evident in sectors that directly impact women's lives, where a lack of female input has historically resulted in products that fail to meet specific needs or even cause harm. Some of these instances are:
.jpg)
Femtech: The femtech industry, which focuses on women's health technology, provides a prime example. Products designed for menstruation, fertility, menopause, and other aspects of women's reproductive health require a deep understanding of the female body and its unique needs. Without the input of women who have firsthand experience with these issues, these products can be ineffective, inaccurate, or even detrimental. For instance, period tracking apps that fail to predict diverse symptoms or fertility trackers that provide inaccurate information can have real consequences like family planning decisions.
Health Tech: Currently, the broader health tech industry also suffers from a lack of gender-specific research and design. Many medical devices and diagnostic tools are based on research primarily conducted on men, leading to ineffective or even unsafe outcomes for women. For instance, women often experience different heart attack symptoms than men, yet many diagnostic tools fail to account for these variations. By prioritizing women's input in health tech development, we can create more equitable and effective healthcare solutions for all.
Personal Care: In the realm of personal care, understanding women's diverse needs and preferences is paramount. Inclusive beauty, hygiene and wellness products, makeup that caters to diverse skin tones, body shapes, hair types to personal care items, are only possible when women are involved in their creation and testing. For example, makeup lines developed with input from women of color are more likely to offer a wider range of shades that accurately match diverse skin tones, while personal care products designed with accessibility in mind can better serve women with disabilities.
Community Engagement and Valuable Feedback
Women are responsible for a large portion of all consumer purchasing decisions, with estimates ranging from 70% to 85%, a trend that strongly extends to digital products. Their active online consumption is particularly notable in key categories like entertainment, e-learning, and subscription services related to beauty and lifestyle, where they are likely to contribute a majority share of the digital product market's revenue. For instance, women account for approximately 55% of the subscription box market, with a strong interest in beauty, wellness, and curated products. Women also significantly influence advertising revenue and purchasing decisions within households and social networks. They are also increasingly active as creators in the digital space, representing over half of all content creators. Given their substantial influence, businesses must engage women in the product development process to ensure their offerings resonate with them and drive sustained growth, which can be achieved through community engagement.
Community engagement is a powerful tool for refining products, identifying gaps, and fostering brand loyalty, particularly when it comes to women-led initiatives. By fostering a collaborative environment where women can actively participate in the product development process, businesses can gain invaluable insights that directly shape the final product. This engagement provides a platform for women to share their unique experiences, needs, and preferences, leading to the identification of previously overlooked issues or opportunities for improvement.
Community engagement also allows for iterative testing, where products can be refined based on user feedback at each stage of development. This approach ensures that the final product is not only functional but also intuitive, user-friendly, and truly relevant to the lives of women.
When women actively participate in product testing and feedback loops, businesses can:
- Ensure products meet the specific needs of women: By directly involving women in the testing process, businesses can ensure that their products address the nuances of women's experiences, from specific health concerns to lifestyle preferences.
- Improve product design and functionality: Feedback from women testers can lead to significant improvements in product design, functionality, and user experience, resulting in more effective and user-friendly products.
- Reduce the risk of releasing products that are ineffective or unsuitable for women: Community engagement acts as a crucial safeguard against releasing products that are poorly designed, ineffective, or even harmful to women.
Propel's Community-as-a-Service (CaaS) model is specifically designed to foster this type of engagement. By connecting businesses with vibrant tech communities, Propel enables them to tap into a rich source of feedback and insights from early-stage users. This approach helps businesses drive awareness, gather actionable insights, and refine their offerings to better meet the needs of their target audience, ultimately boosting product adoption and growth
Successful Examples and Case Studies
To illustrate the power of community engagement and targeted testing in the success of women-led businesses, let's examine several compelling examples:
- Bumble: This dating app fundamentally changed the dynamics of online dating platforms by prioritizing female needs and safety. Bumble's founder, Whitney Wolfe Herd, designed the app with women in mind, giving them the power to make the first move. This innovative approach, combined with ongoing community feedback, has enabled Bumble to cultivate a loyal user base and become a prominent player in the online dating industry.
- Glossier: This beauty brand cultivated a strong online community from its early stages, fostering a sense of belonging and encouraging user-generated content. Glossier emphasizes a "skin first, makeup second" philosophy and actively involves its community in product development, seeking feedback on new products and shades. While Glossier has faced challenges in recent years, its initial success underscores the power of community engagement in building brand loyalty and driving initial product adoption.
- Mented Cosmetics: Founded by KJ Miller and Amanda Johnson, Mented Cosmetics focuses on creating makeup for women of all skin tones. Their approach emphasizes inclusivity and catering to a diverse range of skin tones, born out of the founders' own experiences. The brand actively engages with its community through social media and events, listening to feedback on product development and marketing strategies. They regularly survey their customers to understand their needs and preferences for future product launches, ensuring their offerings resonate with their community and fostering a brand that feels like a home for women of color.
- Elvie: Founded by Tania Boler, Elvie is a Femtech company that designs innovative products for women's health, such as a pelvic floor trainer and a silent wearable breast pump. Elvie prioritizes customer input for product improvements. For example, they released an updated version of their Elvie Pump with enhanced features in 2022 after gathering feedback from their users, which led to a significant increase in user satisfaction. While some customer reviews indicate ongoing issues, the company states that they use customer feedback to improve their products and customer service.
- Canva: This widely used design platform has prioritized user-centric design since its inception, actively seeking feedback from its diverse user base, including women. By listening to its community and incorporating their suggestions, Canva has evolved into a user-friendly and versatile tool that empowers individuals and businesses alike. Their community-driven approach has been instrumental in their widespread adoption and sustained success.
These examples clearly demonstrate how community engagement and targeted testing have played a crucial role in driving product adoption and business growth for women-led companies. By actively involving their target audience in the development process, these businesses have created products that resonate deeply with users, address specific needs, and foster a strong sense of community. This approach not only leads to better products but also builds stronger brands and contributes to long-term success.
Conclusion
Women play a crucial role in shaping the future of digital products. By bringing unique perspectives and addressing specific needs, they drive innovation and create more inclusive solutions. However, the persistent funding gap underscores the need for community support and targeted initiatives that empower women-led businesses.
Community engagement and user feedback are essential for building products that truly serve women. By actively involving women in development and testing, businesses can create more user-centric, functional, and impactful solutions.
Propel is committed to fostering this crucial connection between businesses and communities. Our Community-as-a-Service (CaaS) model provides a platform for businesses to engage with vibrant tech communities, gather actionable insights, and refine their offerings to drive product adoption and growth. We encourage women to get involved in testing and supporting women-led businesses and invite businesses to leverage Propel’s women-focused tech communities to connect with relevant communities and access invaluable feedback.
Ultimately, supporting women-led innovation is not only about empowering women entrepreneurs; it's about creating a more equitable and effective digital landscape for everyone. By amplifying women's voices and actively supporting their ventures, we can build a future where technology truly serves the diverse needs of our society.
.jpg)
.jpg)
