Funding a Woman-Owned Business

Issue: Getting funding as a woman-owned business.

Problem: You hate to always be

Reality: "As a woman-owned business, you aren't the 'normal' startup company," says Brosseau. "Research by Venture One, a company that tracks venture capital investments, shows that in 1998, only 4 percent of information technology businesses that received venture funding had a woman CEO. While I don't believe that this means women can't find funding in today's market -- companies headed by women that are as diverse in business as Petopia.com and Bravo Gifts have recently received significant funding -- I do believe that women can't leave any stone unturned when looking for money."

The right way to get the job done: "Start your funding search by targeting woman-owned business loans offered by most major banks and the venture funds focused on woman-run businesses -- Viridian Capital in San Francisco, New Vista Capital in Palo Alto, Women's Growth Capital Fund and the Telecommunications Development Fund in Washington, D.C." suggests Brosseau. In addition, Brosseau says there are a number of new "angel" groups (wealthy private investors who focus on start-ups) with a lot of women-run businesses in their portfolios, including The Angel's Forum in Palo Alto and the Seraph Capital Network that opened recently in Seattle. "These groups and others like them see women CEOs as a plus," says Brosseau. "I also recommend networking with other women business owners to learn more about the money sources they used."

What to watch out for: Don't expect to get noticed just because you are a woman-owned business. "Investors want you to be able to tell them the story of what problem you see, what solution you are going to create, and why you are the right person to build this business successfully," says Brosseau. "Don't be afraid to brag a little! Leadership is measured by both vision and self-confidence."

— Susan Smith Hendrickson