The Opposite Sex Women in search of money still face a man's world.
Opinions expressed by Entrepreneur contributors are their own.
The bubble may have burst, but there's a new wave ofbusiness owners seeking money for the "next big thing."What are they finding?
Three women who've been there reveal what the financingatmosphere is like for women business owners these days.
Jerusha Stewart, 34, founded iSpiritusSoul Spa, an online and offline store selling personal growthand well-being products, in 1999. She's seeking her first roundof funding to open stores nationwide. Projected 2002 sales: $1.2million.
THE FUNDING CLIMATE:"There's more focus on understanding what businessyou're in and whether it has 'legs,' as they say inHollywood. As a company, we're more focused on attractinginvestors in sync with our values and goals vs. trying to getmeetings with the 'Go, go, get big fast' types of the past.We've also noticed that interested investors are spending moretime [getting] to know us and our company."
THE GENDER PICTURE:"Being a female fund-seeker is a curse and a blessing. On theone hand, you're likely to stand out. On the other hand,they're going to comment on your hair, nails, dress-sometimeseverything but your plan. VCs even refer to the funding process asdating. Getting a meeting is the 'first date,' where youshould wow them but keep a little mystery, so they'll come backfor more. The good news is, you'll get their attention. The badnews is, you may have a harder time keeping it focused on the ballyou're pitching."
ADVICE: "Thefund-raising game is a marathon, not a sprint. Every day we walkthrough a graveyard littered with companies that raised millions ofdollars but weren't built to last. Building a company thatmakes a difference takes time and depth of mission. If youdon't pace yourself, you won't last."
Gloria Kolb, 30, is president of FossaMedical, a Boston company that makes medical devices. She hasalready landed one round of angel funding. Projected 2002 sales:$20,000.
THE FUNDING CLIMATE:"The funding climate is better, especially for the sectorI'm in. Last year was fairly non-committal, but more VCs arelooking to get into health companies. Health is a constant amid thefluctuations of the economy."
THE GENDER PICTURE: "Iface more skepticism. But that's all right, for as soon as Istart the presentation, I have everything to gain. There is morepressure, but often more reward as well."
ADVICE: "Go into apresentation prepared for the questions they will ask and the holesthey will find. Be confident. It's OK to say you need to lookinto an issue, but don't come off as wishy-washy. They need tosee you in a leadership position."
Amy Millman is president of SpringboardEnterprises, a Washington, DC-based nonprofit that promotes thegrowth of entrepreneurship and capital acquisition among womenentrepreneurs.
THE FUNDING CLIMATE:"If you are an entrepreneur, it is always the right time tolaunch a business. There is great opportunity [if you] focus on thefundamentals. Remember, there is no free lunch."
THE GENDER PICTURE:"People opt to do business or spend time with people who lookand act [like them] and have similar experiences. When women makeup 50 percent of the investors, we will probably see a commensuratenumber of women getting funded."
ADVICE: "Present yourvalue proposition concisely, accurately assess the market size,know your competition, and [show that] your management team iswell-positioned to grow the company, you have a sound businessmodel and you have a command of your financials. These are thefundamentals of any business, and if you nail this, fundingcomes."
Aliza Pilar Sherman is an Internet pioneer, netpreneur,speaker and author of the book PowerTools for Women in Business: 10 Ways toSucceed in Life and Work.
Contact Sources
- Fossa Medical
(617) 275-7480, http://www.fossamedical.com - iSpiritus Soul Spa
(510) 465-5400, http://www.ispiritus.com - Springboard Enterprises
(202) 242-6280, http://www.springboardenterprises.org
