Women entrepreneurs are in a better position to recruit investors than men. The following information is intended to encourage women-owned businesses to increase their network of investors and eventually have more success raising capital. This article featured Lisa in the press so, find out more about her.
Why would you want to be associated with a private equity firm or venture capital firm? There are many benefits for you and your business, but the primary reason to apply for funding from private investors is the ability to have access to an investment partner, which enables you to increase your net worth. In fact, there are nearly twice as many women seeking private equity and venture capital as there are men seeking investment.
One of the first steps to locating funding sources is to contact a trusted female acquaintance. A good way to start is by asking if she knows anyone who has secured financing and then requesting a meeting. Once you have developed a network of contacts, you can begin to build a relationship with companies that specialize in venture capital and private equity funding.
Every private equity company or venture capital firm works with applicants who are 50% and under the age of twenty-five years old. Additionally, women entrepreneurs who are in charge of their own companies and not looking for venture capital should not expect to be considered for a loan from any company. But, if you are interested in obtaining funds from a private equity or venture capital company, you must establish yourself as a business leader, while not trying to look like one.
Keep in mind that almost every single one of the larger venture capital and private equity companies requires that all female business owners are at least in their thirties. This is because the founders and board members of these companies need to be seasoned and knowledgeable in the business world. Most of the investors and executives involved with these companies are men.
A couple of ways to meet the requirement are to invest your own money or to find an investor who will invest on your behalf. If you want to become self-sufficient through the sale of your business, investing your own money may be the best choice. The downside is that this route can be expensive.
To attract investors, there are several things that you can do. Meet people you know who are interested in obtaining investment or working with a female entrepreneur. Become part of a networking group that specializes in investing in female-owned companies. Keep in touch with people you have met during your networking efforts and send them regular updates on your business growth.
Working with a female entrepreneur is a great way to have a mentor who will show you how to get started in business, which will help you make more money in the future. A woman entrepreneur understands the challenges that come with starting up a business. Also, she is more likely to provide financial assistance than a man, because she knows she cannot afford to pay out her profits.
Most venture capital companies and private equity firms are interested in networking with entrepreneurs in general. They do not like to see a female entrepreneur leave the group. The reason is that most female entrepreneurs want to continue on with the group for many reasons including the fact that they do not want to appear as a failure or for fear of being considered less of a leader.
Not all venture capital companies and private equity firms are equal. Since there are so many of them, it is hard to know which ones have the best candidates. If you are an applicant and you want to secure funding from the majority of the companies that are involved with providing venture capital and private equity funding, then you need to put forth an effort to meet and connect with as many companies as possible.
The investment community does not appreciate female entrepreneurs with a similar background to those that are involved with other groups. Although there are several programs in place to assist female entrepreneurs with the process of obtaining funding from other groups, the investment community does not always see it as necessary. It can be a frustrating process to try to get connected with a female entrepreneur who seems to be more interested in working with venture capital companies than working with you.
You might also consider hiring a consultant who works for a larger, more established business in the investment community to help you along. The consultant can help you learn about the investment process, the right time to seek out funding and the types of relationships that will work best for you.