Closing the Gap
"How Prosper Women Entrepreneurs is working to narrow the national gender gap in entrepreneurship."
The corporate life wasnโt exactly what Mary Wolff had imagined. โI had a boss tell me once that I was sexy,โ she remembers. โThat doesnโt happen to men.โ
Working as an associate at a real estate law firm, she found that her mostly male co-workers either over-accommodated her female-ness, or didnโt take her seriously. But venturing out on her own didnโt seem viable.
โWorking in the corporate world, there was never an idea that I could do it,โ Wolff said. โI felt like I couldnโt take that step.โ
Wolff graduated with a bachelorโs degree from a top-tier universityโWashington University in St. Louisโand earned a law degree and an LLM by her mid-20s; if a bright, accomplished professional like her didnโt feel like she could build her own company, who could?
Well, it turns out a lot of women feel the same as Wolff. According to the Ewing Marion Kauffman Foundationโs Entrepreneurship Policy Digest released over the summer, women in the United States are half as likely as men to start businesses.
That entrepreneurial gap is the drivingย force behind Prosper Women Entrepreneurs and its two divisions: Prosper Institute, a nonprofit focused on mentoring and training women in the startup community, and Prosper Women Entrepreneurโs Startup Accelerator, a for-profit organization focused on increasing womenโs access to capital and investments in early-stage capital markets.
By supporting women-led, high-growth companies in funding and networkingโareas where, statistically, women-led companies trail their male-led counterparts, PWEโs Startup Accelerator is vouching for the women who have made that leap into the startup ecosystem.
Wolff, now the CEO and co-founder of Taptl, the worldโs only stand-alone transparent LCD screen, as well as a current member of PWE Startup Acceleratorโs Fall 2015 cohort, has already seen a change in her company.
โUpon merely announcing to our network that Taptl [is participating] in the PWE Startup Accelerator, our credibility was instantly established,โ says Wolff. โThe attention we have received from prospective investors has skyrocketed.โ
Itโs Not Just a Womenโs Issue
The 2011 Kauffman Foundation Report is careful to note that the gender discrepancy in entrepreneurship is not just a womenโs issue or an issue of fairness, but an economic concern.
โItโs a problem when half the population is not as productive as they could be; that is basic economic principle,โ argues Mary Jo Gorman, MD, MBA, lead managing partner of Prosper Capital and founder/ former CEO of Advanced ICU Care. โIf there are ways to help this half of the population hire more people, put more good products and services into the economic engine, why wouldnโt we?โ
Detractors might argue that specifically supporting women-led startups un fairly fuels competition with able male-led startups. But the beauty of the modern startup venture is that it is largely additive. In other words: Women arenโt stealing the startup pie from the guys; theyโre helping make the pie bigger.
When viewed through a broader economic lens, male investors, business owners and CEOs should feel no trepidation in helping female-led businesses advance.
โI think in some ways, statistically, men are a little ahead in terms of founding big companies,โ Gorman says. โSo by applying their networks and knowledge to women, who are a couple of steps behind, they can be a huge influence.โ
Finding the Funding
Lack of financing is a concern for all early-stage companies, but women entrepreneurs make do with nearly half as much startup capital as their male counterparts. And the disparity doesnโt end there. Once theyโve begun, women are one-third as likely to access equity financing through angel investments or venture capital.
Prosper overcomes initial financial barriers by giving each startup in its biannual cohorts $50,000 in capital investment along with admission to a three-month accelerator program, with the potential for future support once the program ends.
โOur startup accelerator is unique not only because we focus solely on women-led businesses,โ Gorman says, โbut as far as we know, there is also no other accelerator that provides follow-on funding for selected companies.โ
Meeting the Right Mentors
For Evelyn White, founder of BookaLokal, a company that creates unique dining options in homes and restaurants around the world, it wasnโt just the capital that drew her to apply for the PWE Startup Acceleratorโs spring 2015 cohort, but the opportunity to grow her network of female mentors.
โThe idea of getting funding and tapping into the St. Louis network with the focus on women was definitely appealing,โ White says. โFor most of my career, both pre- and in startups, I worked in male-dominated environments, so I was kind of curious to be surrounded by successful business women.โ
The women in each PWE Startup Accelerator cohort are matched with mentors who have experience in their industry.
โMy strongest relationship was with my mentor, because I was accountable to her every week,โ White says. โWe had structured meetings with deliverables and she was very generous with her time, grabbing lunch and finding opportunities to connect me to her own network.โ
With the opportunities and funding provided to each new accelerator class, Prosper is not only bolstering companies to hold up as inspiration for women considering the startup path in the future, but theyโre also strengthening the startup ecosystem at large.
According to Kauffman Foundation research from earlier this year, women display greater ambition to become serial entrepreneurs than their male counterparts. As they succeed, there is more opportunity to channel funds into the ecosystem, allowing future companies run by both women and men a better chance of succeeding.
โItโs about bringing that awareness to more and more people, especially women, that entrepreneurship is a viable way to contribute and support your family and really build a company,โ says Gorman. โIt lets everyone who is thinking about it but not willing to take the jump see it and say, hey, maybe I can jump into the pool.โ
โNow I feel like I was always supposed to be in this space,โ Wolff says. โI so encourage anyone who finds [the startup] world fascinating to go do it.โ