Venture Capital Money, must be Funny, in a Rich Man’s World : A Qualitative Study About How Women Entrepreneurs Successfully Raise Venture Capital

Abstract: Entrepreneurs who need funding often turn to the venture capital industry. In Sweden, women entrepreneurs represent a third of the total number of entrepreneurs. Meanwhile, women-owned businesses only raise one percent of the total venture capital in Sweden. Previous research has attempted to explain why male entrepreneurs raise more venture capital than women entrepreneurs, however, more research is needed to understand the circumstances for success. This leads to the study’s aim which is to create an understanding of what makes women entrepreneurs successful when raising venture capital, and how they do it, and the research questions, which are How do drivers enable women entrepreneurs to raise venture capital? How do women entrepreneurs overcome the different challenges that they meet when raising venture capital? To reach the study’s aim and answer the research questions a qualitative method was used. Semi-structured interviews with ten respondents, who were women entrepreneurs who had raised venture capital, were conducted. This study contributes new perspectives to the already existing field of entrepreneurship and venture capital, by providing a new framework showing how women entrepreneurs overcome challenges and use drivers for raising venture capital successfully. The results show how the respondents use their entrepreneurial, risk-prone, and highly self-confident personality in their relationship with investors and other entrepreneurs, to successfully raise venture capital. The findings in this study suggest that governmental agencies should provide more network possibilities with venture capitalist firms and investors for women entrepreneurs.