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Venture-backed Women-led Enterprises Perform Well, Springboard Survey Shows

Friday, May 2, 2003

Venture-backed women-led enterprises are moving well beyond start-up stages of corporate formation to revenue generation, and almost 20 percent report profitability, according to Springboard Enterprises, whose program for women entrepreneurs has helped raise $1.76 billion in equity capital for women-led companies.

Since Springboard's launch in 2000, 250 women CEOs and founders have participated in the nonprofit organization's pioneering venture programs for women entrepreneurs. Almost 200 of the 250 companies that have presented at Springboard Venture Forums continue to grow, and 97 have raised more than $1 billion in venture capital following their participation in a Springboard Forum.

A recent survey of Springboard Alumnae, conducted by Springboard and McKinsey & Co., shows that 83 responding Springboard companies are generating an average of $3.4 million in revenues, and 19 percent have already achieved positive cash flow or profitability. An additional 16 percent forecast profitability by the end of 2004. Companies reported raising an average of $7.6 million in equity.

According to the survey, a significant 14 percent of Springboard Alumnae companies have broken out of the pack to grow more rapidly. These breakout companies generally demonstrate longer operating histories than their sisters, the data shows. Further highlights include:

  • Of 11 companies with annual revenues above $5 million, all but one have five or more years of operations and most were founded by serial entrepreneurs, such as SatisFusion Founder and Chairman Fay Wood.
  • One of 20 percent of Springboard Alumnae with more than three previous start-ups, Wood raised more than $15 million in equity and led her four-year-old Long Beach, CA, aftermarket sales and support infrastructure company to profitability.
  • A substantial number of Springboard Alumnae (69 percent) are serial entrepreneurs, with 35 percent having three or more entrepreneurial experiences.

More data is available in the Springboard survey results, which can be obtained from Toni Aluisi at taluisi@qorvis.com.