VC Investment capital operation is still a bottleneck for female entrepreneurs

Source: Internet
Author: User
Keywords Bottlenecks capital operation
According to foreign media reports, research company CB Insights published a study today showing that only 8% of all startups backed by venture capitalists have female founders, although the number in Massachusetts is staggering 27% (the report also provides data from California and New York). Pehub reported that when the illuminate ventures was created, the general manager Sindi Padenos (Cindy Padnos) conducted a study of women entrepreneurs and found that in the United States, companies that are owned or led by women are developing [most] rapidly in new ventures backed by venture capital, is 5 times times the average growth rate of all new companies between 1997 and 2006. The white paper compares the rapid growth of women-led High-tech companies with the rapid growth of high-tech companies led by Indian immigrants in Silicon Valley 30 years ago. • Higher return on investment (35% per cent) compared to a male-level company with senior management positions and return more money to shareholders (34%).  Executives, both male and female, are more creative. Despite the success of women entrepreneurs, capital remains a bottleneck for them.  A woman-led company with 1 million dollars in operating income, compared with a male-led company, has a higher likelihood of acquiring debt capital than equity capital. A woman named Kara Thompson (Carla Thompson) is preparing to start a company, and she recently plans to raise a small amount (less than 50,000 dollars).  Thompson decided to use her relationships to raise the money and to opt for debt rather than equity investments (although investors could turn their claims into equity by the end of the year). Thompson said he was neither ready nor planning to take the time to seek venture capital from the "condescending white man", so she avoided that approach. As Thompson took advantage of her relationships, the amount of money she needed to raise was small, and the minimum amount of input required was low, and she raised one-third of the amount she needed after an hour of email.  This represents a more community-oriented approach to financing, and it does work for Thompson. Thompson's story, Illuminate Ventures's data, other efforts to support women's businesses, and the fact that women have little access to venture capital, are combined to ponder whether there is a better model for funding women-led businesses, Or is it that women are more suitable to use debt rather than venture capital when starting a company? Or is this trend just because venture capitalists ignore women entrepreneurs, and neglected women entrepreneurs just do what they are best at, finding an alternative when they encounter obstacles?
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