"Truitt had bootstrapped her business and wasn't initially convinced that venture capital was the best way to grow it. "I was thinking about my business as a legacy that I would build and pass down," she tells Fast Company, "and that is not something investors love. They want to know if it's a solid idea, [that] there's a need for it in the market, and how quickly you can get out of it and pay [them].""
"Women entrepreneurs launched some 3.5 million new businesses over the past decade, with as many as 78% of them owned by women of color. By 2016, an estimated 1.9 million firms owned by black women employed some 376,500 workers, generating $51.4 billion in revenue. Yet despite all this combined economic clout, venture capitalists have largely stayed away."
"A 2014 Babson College study found that most women-led businesses have been funded by the founder herself or by friends and family. Only 4% of women-owned businesses and 13% of minority-owned businesses received VC funding last year. Part of the reason is that less than 3% of VC funds have black and Latinx investment partners, according to analysis by Social + Capital."
Janine Truitt founded Talent Think Innovations in 2013 and bootstrapped the consulting firm, viewing the business as a legacy rather than a venture-backed, exit-oriented company. Venture capitalists typically seek rapid returns, market need validation, and quick exits, which can clash with legacy-focused founders. Women entrepreneurs launched some 3.5 million new businesses over the past decade, with as many as 78% owned by women of color. By 2016, an estimated 1.9 million firms owned by black women employed roughly 376,500 workers and generated $51.4 billion in revenue. Funding disparities persist: most women-led firms rely on founder, friends, and family funding, and fewer than 3% of VC funds have black and Latinx partners, limiting access to venture capital for underrepresented founders.
Read at Fast Company
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