Despite Fierce Challenges, Promising News for Women-Led Companies. Funding Opportunities Increasing Through 2004-2005
Growthink Research of Los Angeles, California and Chicago-based re:invention, inc. today released a pioneering report, Venture Funding for Women Entrepreneurs. This report is based on a comprehensive analysis of 1,860 privately-held companies that raised over $19 billion of venture capital in 2003, and it profiles 84 women-led funded ventures and over 670 funded companies with women executives.
Los Angeles, CA (PRWEB) June 15, 2004 –- Growthink Research of Los Angeles,
California and Chicago-based re:invention, inc. today released a pioneering
report, Venture Funding for Women Entrepreneurs. This report is based on a
comprehensive analysis of 1,860 privately-held companies that raised over $19
billion of venture capital in 2003, and it profiles 84 women-led funded ventures
and over 670 funded companies with women executives. Analysis conducted by
Growthink Research in partnership with re:invention, reveals the gaps between
women-led and male-led venture capital funded business ventures.
“The
disparity in funding between ventures led by males and females continues, but
there are several areas of note in which women-led companies are performing
better than others” announced study author Corey Lavinsky, CEO of Growthink
Research, a leading venture capital research firm. “Leading the pack are
women-led biotechnology and pharmaceutical companies which collectively raised
$289 million. Further, women-led companies in the fields of HR software,
e-mail/messaging software, and imaging technologies all raised more than 10% of
the total dollars invested in their particular fields."
This past March a
Kauffman Foundation funded study found the venture capital industry was
dominated by males and attributed the lack of women decision-makers and limited
network connections to fueling the female entrepreneur funding gap. The
Kauffman-funded research was based on data from 1995 to 2000.
“Instead
of bemoaning findings in this new report as yet another blow to women, we should
be asking what can we do and where do we go from here?” suggests Kirsten
Osolind, CEO of re:invention, a marketing consulting company dedicated to
women-led businesses and study sponsor. "We need to cultivate programs that help
venture capitalists scale their business models and identify new high potential
women entrepreneurs, as well as encourage, support, and promote visibility of
women entrepreneurs in their attempts to stand out when raising startup
capital.”
Key Findings in the Report
· Women headed 4.5% of all funded
firms and received less than their fair share of capital (4.2%). This amounts to
84 women-led companies that raised $783.8 million.
· Over 200 investors
provided venture capital to privately-held women-led companies in 2003, led by
eight that funded three or more ventures.
· Women-led companies in the
healthcare sector dominated all women-led firms receiving funding, receiving
nearly 55% of funds.
· Women-led firms raised more than 10% of the total
dollars invested in the following subsectors: Agricultural Biotechnology
(17.5%), HR software (14.2%), imaging technologies (14.1%), and e-mail/messaging
software (11.5%).
· More than one-third of the funding went to companies in
the Bay Area.
Research Methodology and Data Verification:
Growthink
Research identified 1,860 private, U.S.-based ventures that received equity
investments in 2003 through surveys of companies, venture capitalists and
corporate investors; articles in newspapers, magazines, and trade publications;
press releases; wire reports; and a network of regional contacts. Companies were
contacted to verify collected information including their funding amount,
investors, funding round and date of funding. Growthink Research also sent
surveys to over 2,000 investors to verify company portfolios and request the
disclosure of other investments.
Sector Analysis:
Thirty seven of the
eighty four women-led companies (44%) were in the Healthcare sector. Healthcare
companies accounted for more than half ($427.7 million) of the total funding
raised by women. Twenty five companies in the Business Software & Services
sector raised $165.3 million, followed by twelve companies in the Connectivity
sector that raised $130.1 million. In comparison, 60% of all male led funded
firms fell into the Connectivity and Business Software & Services sectors,
with only 24% categorized as Healthcare firms.
“The quantitative
findings in this important report validate the experience we have had at
Springboard since we launched in 2000. We've uncovered a tremendous talent pool
of women entrepreneurs launching and growing venture backable businesses.
Shining a spotlight, as this report does, on this untapped source of quality
deal flow will only increase the fortunes of both the women-led firms and their
wise investors.” said Amy Millman, President of Springboard
Enterprises.
The full report is available at www.growthinkresearch.com.
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Source : http://www.prweb.com/releases/2004/6/prweb133291.htm