For any business to take off, it requires a great idea and being able to fund that idea. Securing financial backing is not only validation of the idea. It’s a critical step for any entrepreneur to create a quickly growing company. The startup community is highly male dominated. A very few women have founded a company to a billion dollar valuation. Despite the growing number of women entrepreneurs, only 3 percent of women-owned businesses have revenues of $1 million or more compared with 6 percent of men-owned businesses.According to reports, although more and more women are turning towards entrepreneurship, the number of proposals to VC firms from women is still very less.
All this might be beginning to change with talks of a new women-only venture capital fund soon to be set up in India.A women-only venture capital fund, like Golden Seeds or Women’s Venture Capital Fund in the US, invests in ventures that have at least one woman as a co-founder or at the C level with significant equity holding. Such a fund is expected to encourage more women to explore entrepreneurship opportunities.
Recently a similar idea was being toyed by Tie Stree Shakti (TSS), which aims at enabling aspiring women entrepreneurs. TSS with the help of Paula Mariwala, executive director, Seedfund, prepared a white paper on a women-centric venture capital fund.