Another article this past week appeared regarding women owned companies in technology and VC capital, pointing to a lack of VC firms backing women in the technology business. This has been part of a larger, ongoing “There are no women in tech” voice that’s been consistent in the market this year. As a woman in the tech business with a nearly ten year background in very high tech (internet telecom) and five years as a startup internet founder, I haven’t personally seen a lack of women. I can count nearly 500 women internet founders that I know or know of today — in 2004, I knew four. I also know at least a half dozen women engineers, plus hundreds women in all levels of tech companies, including managers, publicists, marketing, and more. eBay, Google, Yahoo, VMWare, and many other major tech players have had prominent women in high level positions among elsewhere.
With all these women in tech, it can be hard to understand statements that there are no women in tech, but advancement of women in business overall is no where near where it should be, and that’s why these conversations are important. When it comes to women owned companies and VC funding, some key factors should be part of the discussion. First, a very large number of the seven million women entrepreneurs in the U.S. operate companies that may not be the right model for VC-funding regardless of gender. Even with the very extensive connections I have in the VC world, my startup 9 isn’t the right model for it. I raised privately instead. Second, many companies overall don’t need the amount of money most VC firms invest. My first startup had plenty of VC attention, but because we did not want to raise $1 million, we were not a fit. Granted this goes into a gray area of those that do smaller transactions, etc., but this is what a lot of women may encounter as they reach out to VC firms. It’s important to see these as business, not gender, issues to help women better maneuver.
What’s most important, however, is to understand that VC funding is not always the ideal or necessary funding option. In fact, both of my major business advisors, two very accomplished serial entrepreneurs with several acquisitions below their belts, vehemently advise against it. I believe the issue of VC funding and women-owned companies needs to continue to be explored and addressed. But, I also feel there is a significant need for education, support and resources to help women understand all of their choices in terms of investment capital, particularly now as women entrepreneurship booms in tech. When was the last time you saw an article about this? In the coming weeks, we’ll be tapping some of our resources for insight and will share it here. It’ll also be the focus of our first NPG meetup event, which will take place this fall. — Patricia
