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Monday June 26, 2017

Steinberg Notes Venture-Capital Startup Gender Gap

Amanda Steinberg, CEO of NY-based Daily Worth, which gives financial advice online to women, is one of the few female entrepreneurs receiving venture-capital funding for her business. According to Crains New York Business, women own about 1/3 of all US small businesses and start companies twice the rate of men, however 11% of venture-capital funding actually goes to them.

Though Steinberg “bootstrapped” for the first 9 months, she then received $250,000 in the first round of funding. She says women receive less funding because VCs do not generally fund “lifestyle businesses,” which many women start. Also, companies that receive VC funding must be prepared to build a business of real scale, which means the CEO might have to give up weekends, vacations, and family time, which is still not as socially acceptable for women as it is for men.

Crains New York Business