Write a Check To Women in Tech

Not long ago “women” and “technology” meant a secretary with a typewriter composing her boss’s memo.

Times have changed.

Now, not only are women running businesses, they are starting them. And they aren’t sticking with cosmetics or flowers or anything else traditionally “female.”

Ning was co-founded by a woman. So was Flickr, which was bought by Yahoo in 2005 for US$30 million.

Research Findings

Research from venture capital firm Illuminate Ventures presents a compelling case for funding female entrepreneurs. Some of the notable findings are:

• Efficiency, efficiency, efficiency:  The high-tech companies women build are more capital-efficient than the norm. The average venture-backed company run by a woman had achieved comparable early-year revenues, using an average of one-third less committed capital.
• Fewer Failures: Despite often being capital-constrained, women-owned businesses are more likely to survive the transition from raw start-up to established company than the average.
• Growing Influence in Tech:  Women-owned or led firms are the fastest growing sector of new venture creation in the U.S., growing at five times the rate of all new firms between 1997 and 2006 – now representing nearly 50% of all privately held businesses.
• Diversity Improves Performance: Organizations that are the most inclusive of women in top management achieve 35% higher ROE and 34% better total return to shareholders versus their peers – and research shows gender diversity to be particularly valuable where innovation is key.

Looks like, giving women a shot isn’t that bad of an idea. In fact, far from it. It can bring about social progress. And it can restart our economy in the process. Sounds like, it’s worth a bet.

Yet, the Center for Venture Research has found that, in the first half of 2009, 22% of businesses looking for angel investors were owned by women. But only 6% of them were able to establish a relationship with an angel investor.

What’s Missing

Thanks to Facebook, Twitter, and a bounty of blogs, wikis, and everything else that comes with Web 2.0, people are organizing and connecting in ways unknown 5 years ago. Women in the technology sector are on the forefront of these advances.

Women in Technology International (WITI) is a trade association that connects and supports female technology professionals. WITI’s membership numbers 140,000, half of whom either own or hold an executive role in a technology company, according to the association’s 2010 demographics.

This spring, Women Who Tech will hold its Third Annual Telesummit for Women in Technology. These virtual symposiums broadcast panel discussions via podcasts, which makes them free resources that are available on demand.

Earlier in February, Women 2.0 held its 2-day “Will it Launch?” workshop in San Francisco to help women polish their startup ideas.

Apparently, the business resources are in place. What’s missing is your investment to transform business plans into businesses.