WASHINGTON--Venture capitalists often remembered Kim Fisher because she was one of the few women who presented business plans to them, she says.

But being a novelty in the business has both good and bad sides. Novelty doesn't necessarily result in funding.

Fisher's experience exemplifies the findings of a recent report from the U.S. Small Business Administration. It says women are an unseen and unheard presence in the technology industry though they are educated, willing, and experienced.

Fisher left Motorola to form the start-up AudioBasket, which she sold for $26 million just before the tech bust two years ago. She now heads Women's Technology Cluster, a venture incubator for women in Silicon Valley.

Many women lack access to social networks that are crucial in getting funding and expertise for start-ups, Fisher says. In fact, the SBA report says more and more women entrepreneurs are capable of starting high-tech businesses, but are held back by the lack of venture capital funding.

The study surveyed more than 1000 women entrepreneurs who had presented business plans at conventions organized by Springboard, a nonprofit organization designed to help women get access to equity markets. More than half of the female entrepreneurs presented plans for Internet and software-related businesses.

Qualified But Quiet

The findings also dispute myths that women are ill-equipped to lead high-growth businesses. Almost half the women surveyed had graduate degrees, many of them in business, science, and technology. Nor do women shy away from technology-related businesses, the study says. Half of all women-led businesses funded last year were in hardware or software products and services.

IThe report also says women are more prepared than ever to lead businesses. Of the companies that went public in 2001, 41 percent had women in top management, compared to none in 1988.

Nevertheless, only 5 percent of venture capital funding in 2001 went to firms led by women. More than half the women who started businesses used credit to fund their ventures. Some 70 percent of all Springboard applicants dipped into their earnings to start their ventures.

Getting venture capital investment often hinges on connections, and women "lack access to networks, so they are starting companies and have the know-how but not the know-who," says Debra Fitzer, Springboard's director of programming.

"We know that women are starting entrepreneurial companies in greater numbers than ever," says Patrick Von Bargen, executive director of the National Commission on Entrepreneurship, adding that "women continue to struggle breaking into networks largely run by men who oversee the bulk of equity funds."

Next Generation

As a result, women are increasingly creating their own networks for funding and management expertise, says Ken Berlack, a spokesperson for the commission. More than 200 women entrepreneurs have received $650 million in venture funding in the two years since the inception of the Springboard conventions. Women's Technology Cluster has incubated 17 businesses in the three years since it began.

Such organizations have played a crucial role, and Berlack says that he hopes to see women-led businesses get a larger share of venture capital in the longer term.

"It is also a critical mass issue," says Amy Millman, Springboard president. A new, very capable breed of professional women is appearing, she adds. Still, "Women are traditionally not encouraged to be entrepreneurs--there are too few role models for women entrepreneurs."

As a result, female entrepreneurs tend to know a lot about the products and services they offer, but need to develop negotiating skills and a stronger understanding of the business environment, Millman says.

Fisher agrees. For example, in negotiations "Women make offers they really mean rather than exaggerate and then bring it down," she says. "Women are ambitious and want to [expand] their businesses, but typically they also hold back when market conditions are not good." However, this can give a business a better chance of surviving difficult times.

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