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Women Entrepreneurs - 10 Keys to Get Up and Running
By: MaryAnn Shank
Yeesh. Women outpace men in new businesses about 2 to 3. Latina women in particular are entering entrepreneurial ranks full speed ahead, outpacing every other demographic group.
So why the heck are women losing ground in the venture capital pool? Less than four percent of venture-backed companies are headed by women, the lowest in ten years. (Article Continues Below)
Four percent. It's not much better for angel investors. Only ten percent of angel money goes to businesses headed by women. (Article Continues Below)
It's not that the money isn't there. On the contrary, there are billions and billions of dollars in new venture capital funds and new angel groups. I track those funds, and I know there is a lot of money there. So how come women aren't getting their fair share? The simple answer is that venture capital and angel investment firms are run by men. More importantly, what can we do about it? While there isn't a magical answer, there are some real steps that women can take to make their companies a success. 1. Bootstrap the company. Well over 90% of all companies are still bootstrapped, financed by the owners. Male, female, Hispanic, disadvantaged - it makes no difference. This is still your best way to finance a company. 2. Incorporate. If you take your business seriously, others are more likely to do so too. 3. Create a strong Advisory Board. Few things say as much about your company as who chooses to put their names on it. A strong Advisory Board drawn from the industry, comprised of men and women, is a huge asset.
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