Women in Business Tip: Investments in Women-Owned Businesses Return Positive Results - Forum.web.com
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Women in Business Tip: Investments in Women-Owned Businesses Return Positive Results

Studies of women-owned businesses have consistently come to the same conclusion when it comes to the question of funding: Women-led businesses receive less funding than companies led by men. Are we preaching to the choir? What may not be as well-known is that the performance of VC firms improves as their ratio of investment in women-led businesses increases, according to “Venture Capital, Social Capital and the Funding of Women-led Businesses”, a study by JMG Consulting LLC & Wyckoff Consulting LLC for the Small Business Administration that was released last year. The study, which looked at all U.S. venture capital investments from 2000 through 2010, also found that when one woman-owned business gets financing, it tends to have a domino effect: Because VC funding is usually relationship-based, once a VC firm invests in a women-led business, that business owner may introduce or recommend other successful women-led businesses to the VC.

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Rieva Lesonsky

Rieva Lesonsky

Rieva Lesonsky is CEO of GrowBiz Media, a media and custom content company focusing on small business and entrepreneurship. Email Rieva at rieva@smallbizdaily.com, follow her on Google+ and Twitter.com/Rieva, and visit her website, SmallBizDaily.com, to get the scoop on business trends and sign up for Rieva’s free TrendCast reports.
Rieva Lesonsky

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