They may view the business as an extension of their personal values and, therefore, are less willing to give up ownership and management control to get venture capital. One theory is that women build businesses to last rather than for pure economic purposes. They prefer to create a culture in the organization that sustains a business for the long-term. Thus, they may explicitly reject a defined exit strategy that appeals to venture capitalists. They prefer to grow their businesses incrementally and use other sources of capital.
Current trends show there is an upswing in women accessing the venture capital markets.
More women are entering the venture capital field and more venture funds are being formed to focus on women entrepreneurs. Also, as more women become successful entrepreneurs, they are creating their own networks to help provide other women with capital and introductions to venture capitalists. The Diana Project, however, is designed to ensure that women can access capital more quickly from traditional funding sources as opposed to relying solely on women-focused networks. The researchers also hope to demonstrate the potential for venture investors to expand their venture opportunities and diversify their portfolios. The Diana Project is sponsored by the Kauffman Center for Entrepreneurial Leadership.