GREAT 197 IDEA: Kay Koplovitz—Leverage a New Technology

Kay Koplovitz is the first woman to start a cable television network. She's also a venture capitalist who cofounded Springboard Enterprises, an organization devoted to preparing women business owners to raise venture capital. She also serves as chairman of the board of Liz Claiborne Inc.

Koplovitz told me her greatest idea came to her during a lecture at the London School of Economics. “I went to a lecture on geo-synchronous orbiting satellites,” recalled Koplovitz. “I learned that satellites provided a way of communicating anywhere on earth. No one could jam or stop those signals. This information was so moving and so powerful I decided to do something with it.”

In 1968, she wrote a master's thesis on how satellites were changing the communications culture. That thesis formed the foundation for the business plan for USA Networks. She had to wait until 1975, when the federal government approved the use of satellites for commercial broadcast, to start raising money.

In 1977, USA Networks finally launched, pioneering a new model based on two income streams—advertising revenues and licensing fees paid by cable operators and viewers.

“Cable television generates enormous fees, but now there are major challenges since consumers are accessing so much content via broadband,” said Koplovitz. “Cable networks are trying to maintain their revenue streams … but (the Internet) is posing a real threat to their business.”

Her second great idea was founding Springboard Enterprises. “It's still necessary to make an effort to get women into the marketplace,” said Koplovitz. “Ninety-five percent of venture capitalists are men. Their networks are still skewed toward their buddies, the people they play sports or golf with.”

Although raising venture capital “is still a testosterone-laden business,” Koplovitz said there are still some “very bright and successful women venture capitalists, including Ann Winblad.”

Springboard is a nonprofit group that provides coaching and organizes “boot camps” aimed at helping businesswomen polish their business plans and prepare their pitches before meeting with potential investors. “This is not a social experiment,” she said. “Their goal is to raise and make money.”

Koplovitz has been advocating for women in business for many years. During his tenure, President Clinton appointed her to chair the National Women's Business Council. “When President Clinton asked me to do it, I said I would if I had the freedom to help women get access to significant amounts of venture capital. At the time, only 1.7 percent of venture money was going to women.” (It's still less than 5 percent.)

“Springboard's track record is really quite spectacular,” said Koplovitz. “So far, 450 companies have raised more than $5 billion. A third of those companies have positive liquidity. This is remarkable for anybody—not just for women.”

Koplovitz is busy with her board positions, investments, and Springboard. I asked what she did to relax.

“I'm an altitude hiker,” said Koplovitz. “I'm also into whitewater rafting. We've spent many years visiting cities and museums. Now, if I want to get away, I like to get out in the wilderness. The idea is not to be connected. It's good for the soul.”