Funding Issues and Options for Women Entrepreneurs


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 the 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 the 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.

Doing It on the Side

In funding terms, this means working another job to support oneself while launching an idea on the side. Working freelance or independent consulting jobs offers maximum flexibility to squeeze in start-up ventures.

Business Plan Contests

Such contests are a great way for women to not only get money but also to validate their idea. Usually these contests will kick off major contacts that can help new businesses move forward at a faster pace.

Ladies Who Launch favorites include:


Friends and Family

Women are great at multitasking due to their non-linear thinking instincts, so starting a business while raising a family may not be as far-fetched as it seems, but rather a logical starting point. For examples of women who did this, Ladies Who Launch features include:
Molly Snyder and
Jane Scott Hodges.
These women started businesses that took off while starting families.

Funding through friends and family is a great alternative for women because, unlike traditional venture capital, which requires giving up a huge degree of control while answering to strangers, with this option, they can garner financial support without losing as much control or meeting stringent reporting requirements which may hinder them from focusing on moving their businesses forward. Some examples of Ladies Who Launch features who used this as their primary funding means:
Suzy Jurist,
Lela Rose and
Lizzy Flannagan.

Debt Structure

It is becoming easier for women to find and obtain loans from different sources. Loans are a great way to minimize control issues and also to force women to think long term and develop a revenue plan that works. The Small Business Association is one great way to obtain debt financing.

Starting Small, Growing Slowly
This is a funding mechanism because women can manage their growth with money coming in and can grow slowly. Patience is a virtue. Women are often balancing and juggling so much anyway that tempered growth is a natural conduit to their lifestyles.

About the Author

Founder and President of Ladies Who Launch, www.ladieswholaunch.com. Victoria began her career as a corporate lawyer at Kelley Drye and Warren in New York and holds a JD / MBA from Case Western Reserve University, Cleveland, OH, and a B.A. with honors from Brown University.

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