Traditional Venture Capital
Problem: it is an old boy's network and access to it is limited.
The traditional Venture Capital (VC) structure is not conducive to women's businesses which tend to be passion-driven, and less focused on exit strategies requiring high returns in short periods (5 years or less). Women typically want to balance money with fulfillment and may focus less on high returns if this means giving up specific lifestyle characteristics.
Solution: Some venture capitalists that "think out of
box" and focus on funding women owned companies are alternatives to consider.
Some of these VC firms include:
Alternatives to Venture Capital
Using One Business to Fund Another
Low overhead businesses, like service businesses, with which women tend to have success, are great starting points that can lead to more product-oriented businesses. These businesses often provide launching pads for women to become familiar with an industry, build relationships in
industry and lead to a natural progression of growth in other areas.
For example, Ladies Who Launch feature Alison Chozen funded her company Sterling Truffle Bar with her event company, Mosaic. See her story. Another example is Ladies Who Launch feature Holly Bohn who used her offices services company to fund www.seejanework.com (stylish office products). For more on her story, click here
Franchise, Sales Rep and Independent Contracting Opportunities
Ladies Who Launch believes this is a great model for women who want to start their own businesses while having maximum flexibility and low financial risks. This model allows women to be creative, to have control and to have flexibility while making money. There are many options out there and some are especially great for women who may have an idea but do not necessarily want to reinvent a wheel that may already exist. For Ladies Who Launch recommendations of companies that offer these opportunities, please see Entrepreneurial Opportunities with Lower Risk and Maximum Flexibility.