Women Still Battle to Get Venture Funds
PALO ALTO — Women entrepreneurs continue to struggle to win venture capital financing because stereotypes of women as less technically savvy than men persist, said Anita Borg, president of the Institute for Women and Technology.
“Women are starting something like twice as many companies as men, but the money is primarily going to companies started by men,” Borg told Bloomberg Forum. The nonprofit Palo Alto institute she heads conducts research in technologies that will have a positive impact on women.
High-profile female entrepreneurs such as Marimba Inc. Chief Executive Kim Polese have won financing from venture capital firms. Companies such as IVillage Inc., whose network of Web sites targets women, have succeeded in selling shares to the public. Still, stereotypes that women aren’t as skilled in technology and business make it difficult for women seeking credibility and consequently, funding, in technology, Borg said.
“Women aren’t connected to the old boy’s network” within venture capital firms, Borg said. “There is still a perception that the way women are isn’t necessarily what you need for the powerhouse start-ups.”
The types of companies that do receive funding reflect stereotypes of women and their spheres of influence. Closely held Della.com, a wedding-gift registry Web site, received financing from Menlo Park-based Kleiner Perkins Caufield & Byers. Several cosmetics-related Web sites such as Gloss.com, Eve.com and Ingredients.com were started by women and received venture financing.
New York-based IVillage and San Mateo, Calif.-based Women.com are public companies that offer different Web sites on topics for women such as health and fitness, parenting, finances and relationships.
“The stereotypes really play into what kinds of companies women can get funded for,” Borg said. Until someone takes a risk on a woman who is interested in building the next-fastest microprocessor or the next cool device or even the latest gadget, the stereotypes will continue, she said.
Some women, such as Sandra Lerner--one of the founders of Cisco Systems Corp.--have been involved with start-ups that became huge corporations. Although Lerner is no longer involved with the management of Cisco, the company now boasts a $361.5-billion market value as the No. 1 maker of computer-networking equipment.
Borg is a member of the research staff at Xerox Corp.’s famed Palo Alto Research Center, where inventions such as the computer mouse, the graphical user interface and other computer innovations were created.
