Even when additional debt is available to the start-up business owner, it may not be the best form of financing for growing the enterprise. Most early stage growth companies would benefit from equity financing and the managing and nurturing that goes with it.

I know there are some misconceptions held by some of the entrepreneurs that seek help from NCIC. This anxiety was described in a February 24 Wall Street Journal article by Paulette Thomas on why so few women tap the record $12 billion pool of venture capital. Thomas says, "The relationship between a venture capitalist and a business owner has an ambiguous balance of power that unsettles many women. Many women launch businesses in order to be their own bosses, and that makes them especially reluctant to hand over the big equity stakes that venture capitalists demand. Venture capitalists, meanwhile, quickly move on if they sense an unwillingness to be coached," added Thomas.

We find this wariness of venture capitalists and reluctance to accept coaching is fairly widespread among first time entrepreneurs. It may be that the deal structure and covenants in the typical term sheet and agreements are confusing or even worse, frightening to many entrepreneurs.

The staff at NCIC is always available to explain the financing options and how they may be accessed. Most early stage venture deals are structured with debt or equity containing convertibilty features such as debt with warrants or senior preferred stock. In addition to gaining comfort with the terms of any agreement, entrepreneurs need to feel compatible with the investors. Since most successful venture deals require a few rounds of financing before the company is ready to be on its own, this will be a very close relationship demanding mutual respect for best results.

In concluding her Wall Street Journal article on women entrepreneurs, Thomas quotes the developer of an Internet artauction company whose friends warned her about taking venture capital by saying "Oh they'll take control; it will cease to be your company, and she said, "100% of zero is zero. And a small percent of a lot is a lot."