As the CEO of an energy company at the forefront of revolutionizing how the utilities and oil and gas industries can reduce 99% of their methane emissions, I've navigated a tumultuous journey in the pursuit of capital. Despite our groundbreaking achievements, securing funding remains a Herculean task for women CEOs in traditional industries like mine.
The energy sector, long dominated by men, presents unique challenges for women seeking access to capital. While industries like tech and AI capture the lion's share of investor attention and funding, companies like mine, which offer tangible solutions to pressing environmental and energy challenges, often are heavily impacted by the choice of our next president.
One glaring issue is the reticence of the finance community to pay attention to industries outside of the tech and AI sectors. Despite the undeniable impact and potential of companies that are making tangible contributions to bending the climate curve backward to a healthful position, there exists a prevailing bias that favors industries perceived as more innovative or disruptive. This bias not only hampers the growth of companies in traditional sectors but also perpetuates inequalities in access to capital.
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Moreover, the Small Business Administration — touted as a lifeline for entrepreneurs seeking capital — often falls short. While the SBA offers support and resources, accessing capital through their programs can be prohibitively expensive, and in some cases, the most expensive and limiting option. This creates a Catch-22 situation where women CEOs are forced to choose between exorbitant financing costs or limited growth prospects.
In my experience, traditional businesses, like the energy industry, are subjected to higher scrutiny and more onerous terms when seeking capital. Founders are expected to relinquish significant equity, even with a healthy P&L, robust financial track record, and Fortune 100 clients — obtaining the attention and support of traditional financial institutions such as the big banks remains elusive. In my mind, there is a disconnect between performance and access to capital and it appears to underscore the entrenched biases that hinder women's economic empowerment in traditional industries. I've observed that if my company were in the realms of Bitcoin or AI technology, the same level of equity sacrifice wouldn't be demanded.
Adding another layer to the challenge is the gender bias that pervades the banking and investment sectors. As a woman of color CEO, I've often found myself facing an uphill battle when approaching big banks for financing. Studies such as this one by the Harvard Business Review have shown that women-led businesses receive a disproportionately small share of venture capital funding, and my personal experience corroborates this disparity.
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Despite these challenges, women business owners in traditional sectors like energy are resilient and resourceful. We recognize that we must find innovative ways to navigate the capital landscape. In my case, I've leveraged the expertise of seasoned professionals from the oil and gas industry and focused on cleantech services such as methane recapture and tapped into supplier diversity programs within the utilities sector to clinch deals and drive growth for my company.
In conclusion, the challenges facing women CEOs in traditional industries are multifaceted and deeply entrenched. From systemic biases in the finance community to limited access to affordable capital, the road to success is riddled with obstacles. However, by harnessing our resilience, creativity, and collective power, we can break through these barriers and pave the way for a more inclusive and equitable business landscape. It's time for investors and financial institutions to recognize the immense value and potential that women-led businesses bring to the table and to provide them with the support and resources they need to thrive.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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