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Fair Financing

Female entrepreneurs are still working for it.

The numbers are in: Women head 38 percent of U.S. businesses yet receive less than 10 percent of the equity capital invested in American firms. A National Foundation for Women Business Owners (NFWBO) study, which surveyed professional, corporate and bank-affiliated investors, as well as female entrepreneurs, found that firms led by women constituted 9 percent of all institutional investment deals and received only 2.3 percent of all institutional investment dollars.

VentureOne's quarterly survey of venture-backed companies with women in top management found that in the first half of 2000, 6 percent of venture-backed firms had female CEOs.

Faced with evidence that women get the short end of the equity capital stick, some prominent advocates for women in business offer possible solutions.

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This article was originally published in the January 2001 print edition of Entrepreneur with the headline: Fair Financing.

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