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Opinions and views from expert CFOZone members.


Aug 30
2010

Women entrepreneurs wanted

Posted by dbedell in women entrepreneursventure capitalincubatorentrepreneursCareers/Managementbiztech

dbedell

With money starting to once again flow back into the technology space, investors are keen to get in on the ground level of new technology–and find that next Facebook or Google.

They are, of course, investing with caution. However, one of the key mechanisms that has long helped fuel such development has been the incubator model–where entrepreneurs can enter an intensive incubator program, get access to potential funding, and valuable education and advice to help them move along a start-up idea.

But one thing that has been decidedly lacking from the many incubators that have come up, disappeared, restarted, and the like, is women.

Few women entrepreneurs find their way into technology incubators. As a result, the figures for women at the helm of technology start-ups are very poor. And the thing is, a big part of the reason for that is that not many women apply to incubators.

This is not to say they have no ideas worthy of a tech incubator. In her blog on the Small Business Open Forum, Anita Campbell last week argued that it is rather that the incubator culture does not lend itself to the life-scheme of the average woman entrepreneur.

Campbell says: “Blogger Tereza Nemessanyi recently pointed out that Y Combinator, one of the best-known and most successful tech incubators, has a woefully low percentage of female graduates. And it’s not that women are getting rejected from the program—they aren’t even applying. Nemessanyi has suggested women need their own Y Combinator—the XX Combinator.”

Part of it is age: women reach their entrepreneurial peak at closer to 40 than early 20s–the average age of most entrepreneurs that incubators attract–according to the two women bloggers.

By 40, however, it is difficult for a woman to dedicate as much as 12 weeks intensively to an incubator program–another stumbling block.

But women tech entrepreneurs take note. There is hope: in the form of Women 2.0 Labs–a pre-incubator program founded by women entrepreneurs, and sponsored by firms such as Microsoft, Paypal and Pillsbury, to provide access to start-up friendly resources and education on moving forward to VC funding. And it offers greater flexibility to fit the lifestyle of the average woman entrepreneur than other run-of-the-mill incubators.

It is unlikely that the number of women-led tech start-ups will increase dramatically over the next few years. But at least for those who are looking for a helping hand to enter the complex world of venture capital, seed funding, business planning, and the like, resources are available.

And for investors, it provides a richer tapestry of ideas to foster—and profit from.

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