Female Entrepreneurs and Venture Female Entrepreneurs and Venture Capital FundingCapital Funding

•Although venture capital firms dole out billions of dollars to fledgling companies every year, only about 7% of those funds go to female entrepreneurs. This figure is low for several reasons. First, women simply establish fewer companies than men in today’s economy. Second, the companies that women do establish are not always in industries that have traditionally appealed to venture capitalists. At the same time, there is a social and interpersonal aspect of the venture capital funding process that may be biased against women. For example, venture capitalists often emphasize that they look for executive leaders that they could imagine becoming friends with. In a male-dominated industry, this can put women at a disadvantage.

•To secure venture capital, women must often connect with potential investors on several levels beyond business. One of the most researched factors in creating social bonds in business is sports. Simply put, anyone, male or female, who can talk about sports may be better able to forge friendly relationships with potential investors. Women can also overcome disadvantages by networking professionally. When women come into an investor meeting with powerful ties, they demand time and attention, and they can bond with venture capitalists over their mutual contacts.