For years the battle cry from women entrepreneurs was "Show me the money!" Banks, venture capitalists, angel investors and just about any entity willing to invest funds into a new startup stayed clear of female wannabe entrepreneurs. Oh, the times they are a changing.... 
A recent interview with Kevin O'Leary, aka Mr. Wonderful from the successful TV show The Shark Tank, revealed that O'Leary "given the choice between a woman and a man, would pick the woman every time." Smart man and smart investor.
A recent report from Babson College, The Diana Report: Bridging The Gender Gap in Venture Capital, shares information about women entrepreneurs lack of networking for one reason women entrepreneurs fall behind their male counterparts in raising capital. However, the report also indicates that woman-owned businesses, during the three year period between 2011- 2013, went from 9% to 18% funding. The investments included seed, early stage and late stage venture capital funding.
So, one might ask why the jump in venture capital interest in women entrepreneurs? The answer is all about money.
First, as a business coach, for almost ten years, I know that women entrepreneurs, generally, take less risk than male entrepreneurs. At one time, the late 90's for instance, taking big risks was considered bold. Valuations of businesses were more of an illusion than a science. For example, think of all those dot-com companies that aren't around anymore, and the venture money that was thrown at them. Those days, thank goodness, are pretty much past.
Today, an entrepreneur must be able to make a case for how the business will pay back the investor. Smoke and mirrors just won't cut it anymore. For a lesson on this just watch any episode of Shark Tank.
So, why in 2015, should the investment community pay special attention to women entrepreneurs?
I believe that there are three main reasons.
First, and again Kevin O'Leary's main reason for investing with woman-owned businesses - they are less risk taking. Women are traditionally less risk adverse. In business today that is not always a bad thing. Women entrepreneurs, myself included, set up to build a business that will be profitable as soon as possible. Building on a successful business is something investors want to believe in. Yes, a business can grow astronomically from profitable to super profitable! Big surprise! There is nothing wrong with getting the building blocks of a business set up prior to going out for venture capital or other investment. So, women entrepreneurs, listen up! If you have a profitable business that can multiply quickly with the right investment don't be afraid to ask.
Second, women entrepreneurs are more likely to be goal-oriented and set targets and then meet them before even thinking about outside investment. I know with my own business how much I relied on my business plan. I had clear benchmarks for each month, each quarter and each year. I was well prepared NOT to pay myself until I reach those benchmarks. All of these are clear signs for the VCs, angels and funders that the entrepreneur is serious about growing the business first and paying themselves later.
Third, and sometimes most important for investors, the majority of women entrepreneurs understand an eventual exit. Yes, women in business know well the cycles in life and feel them more often than men. If the business they give birth to sky-rockets and takes on a life of its own they are, perhaps, more understanding that their work is done. Can I say the ego gets less in the way with women than it does with men? Well, I guess I can because I just said it. But, in my experience as a business coach for entrepreneurs it is very true.
The internet is full of statistics that show that having a woman on the executive team of a company, or on the company board, means that the company will be more profitable than the company that does not have women. The fact that I know this is true and that Kevin O'Leary of Shark Tank knows it to be true is only the beginning for women entrepreneurs looking to raise money.
It is time for women to stop having excuses for their presentation style or their lack of networking and to professionally present their businesses with the numbers that demonstrate their long-term profitability. At the end of the day, all any investor, including banks, is looking for is to invest in a business that will make them profits.
Your job as a woman entrepreneur is to go out there, be bold, and not afraid to demonstrate that you have a business that can scale....the mountains, the oceans and the stock market! Go for it!


