“Women tend to start so-called lifestyle businesses, meaning companies that stay small enough to allow their owners to have a life outside the business, while investors are looking for startups with the potential for huge scale, so there is often a mismatch.”
By Anne Fisher (Writer, Crain’s New York Business)
“Venture capital has always been a guy’s game,” entrepreneur Amanda Steinberg said recently.
Too true: Although women own about one-third of all U.S. small businesses and start companies at twice the rate of men, a scant 11% of venture capital funding goes to female entrepreneurs, according to Dow Jones VentureSource.
Yet Amanda, CEO of DailyWorth, which she founded in early 2009, has raised more than $3 million in outside capital from New York-based investment firms and angels, as well as from Google Chairman Eric Schmidt’s fund TomorrowVentures. Her company, which offers financial advice online to women, now has about 250,000 subscribers.
In a recent conversation, Amanda talked about why female entrepreneurs get so little venture funding — and how to decide whether to seek it.
» Read the full article at Crain’s New York Business.