An Investigation Of Women-Led Firms And Venture Capital Investment

Overview: For decades, venture capital investment assumed a quiet yet crucial role in the development and expansion of growing ventures. However, the 1990’s boom in technology dramatically increased in the pool of equity capital and funding of new ventures with high growth potential. There is a substantial body of venture capital research on equity fund flows, investor criteria, and the nature of the investor-investee relationship, but no consideration of women-led ventures. Studies of women entrepreneurs have focused on psychological dimensions, business characteristics and performance, but their financing strategies remain unexplored. This research investigated venture capital funding and women-led businesses. It utilized two data sets. First, it conducted a literature review and analyzed the nature of the venture capital industry. Second, it analyzed the Venture Economics data set, which includes private equity investments by venture capital firms for more than 30 years. Women-led ventures more likely to receive funding are those in early stage financing, located in the West and Northeast, and in computer hardware/software business sectors. Investments in women-led ventures differ from those in men-led ventures by business sector and stage of investment.

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Format: PDF | Size: 116KB | Date: Oct 2001 | Pages: 38