2. •Although venture capital firms dole out billions of dollars to fledgling companies
every year, only about 7% of those funds go to female entrepreneurs. This figure is
low for several reasons. First, women simply establish fewer companies than men in
today’s economy. Second, the companies that women do establish are not always in
industries that have traditionally appealed to venture capitalists. At the same time,
there is a social and interpersonal aspect of the venture capital funding process that
may be biased against women. For example, venture capitalists often emphasize
that they look for executive leaders that they could imagine becoming friends with. In
a male-dominated industry, this can put women at a disadvantage.
3. •To secure venture capital, women must often connect with potential investors on
several levels beyond business. One of the most researched factors in creating
social bonds in business is sports. Simply put, anyone, male or female, who can talk
about sports may be better able to forge friendly relationships with potential
investors. Women can also overcome disadvantages by networking professionally.
When women come into an investor meeting with powerful ties, they demand time
and attention, and they can bond with venture capitalists over their mutual contacts.