Female Entrepreneurs, Capital and a Misguided View

If given the choice, would a venture capitalist or private equity investor be more likely to chase a deal or a skirt?

In the near 20 years I have worked in technology, I’ve had a healthy amount of interaction with equity investors. I’ve represented emerging growth companies, been an advisor to M&A transactions and IPOs, and rubbed shoulders at countless industry forums and networking events.

In no way do I gush over fat wallets, yet I do admire a professional investor’s singular focus on making money for themselves and for their limited partners.

So…I say deal, rather than skirt.

Yet, an article published last month by the New York Times entitled “Out of the Loop in Silicon Valley” portrays a different view of investor motivations.

The story authored by Claire Cain Miller explores a myriad of issues that impact the success of female entrepreneurs, technologists and entrepreneurs – such as education, personal goals related to family and the absence of professional role models. However, for the purpose of this blog post I’d like to explore Miller’s accusation that venture capitalists are inherently sexist.


The article leads with entrepreneur’s Candace Fleming’s frustrating tale of attempting to raise money for Crimson Hexagon, a start-up company she headed. She made the rounds to some 30 venture firms only to come away empty handed and insulted. (Photo: entrepreneur Candace Fleming, image courtesy of the Journal of New England Technology.)

One VC referred to Fleming as “mom.” Another made an indecent proposal involving his yacht and a naked photo of himself. While a third was more interested in discussing the impact biking has on male reproductive capabilities.

“I didn’t know things like this still happened,” Fleming told the NY Times. “But I know that, especially in risky times like the last couple of years, some investors kind of retreat to investing via a template. A company owned by a woman is just not the standard template.”

In no way do I defend the behavior of these venture capitalists. If true, their comments were completely out of line, inappropriate and degrading.

Yet, I also believe Fleming is misguided in her belief that it was her gender that tempered financial interest in Crimson Hexagon. More likely, it was the VCs conclusion that the company was tethered to a faulty business model, or Fleming was ineffective at presenting the company’s vision, strategy and growth plan.

Buried in the NY Times story is the revelation that Fleming recently resigned from Crimson Hexagon because “she had drifted too far from the creative side of the business.” Soon thereafter the company announced completion of its financing and the appointment of a new CEO.

So maybe sexist views didn’t block this start-up from much needed capital. It could have been an ineffective CEO.