in venture capital we invest in very early-stage companies so our money funds
early-stage companies so our money funds
early-stage companies so our money funds ideas that can’t get traditional bank
ideas that can’t get traditional bank
ideas that can’t get traditional bank financing or are particularly disruptive
financing or are particularly disruptive
financing or are particularly disruptive to products and services in the market
to products and services in the market
to products and services in the market and you take anywhere from five to eight
and you take anywhere from five to eight
and you take anywhere from five to eight years to reach maturity this is very
years to reach maturity this is very
years to reach maturity this is very very risky and so we have to build
very risky and so we have to build
very risky and so we have to build diverse portfolios about two-thirds of
diverse portfolios about two-thirds of
diverse portfolios about two-thirds of all startups fail completely and
all startups fail completely and
all startups fail completely and investors don’t get any other money back
investors don’t get any other money back
investors don’t get any other money back and of the remainder a small number do
and of the remainder a small number do
and of the remainder a small number do exceptionally well and return many many
exceptionally well and return many many
exceptionally well and return many many times what their investors put into them
times what their investors put into them
times what their investors put into them and so we’re basically looking for
and so we’re basically looking for
and so we’re basically looking for diamonds in the rough and from the
diamonds in the rough and from the
diamonds in the rough and from the outside this probably looks a little bit
outside this probably looks a little bit
outside this probably looks a little bit like the Wild West with Cowboys running
like the Wild West with Cowboys running
like the Wild West with Cowboys running around and losing lots of money and I
around and losing lots of money and I
around and losing lots of money and I say Cowboys because there are
say Cowboys because there are
say Cowboys because there are exceptionally few women in this space
exceptionally few women in this space
exceptionally few women in this space less than 10% of partners at venture
less than 10% of partners at venture
less than 10% of partners at venture funds the top 100 venture funds are
funds the top 100 venture funds are
funds the top 100 venture funds are women and that’s the only decision
women and that’s the only decision
women and that’s the only decision excuse me
excuse me
excuse me the only role in which you can make an
the only role in which you can make an
the only role in which you can make an actual investment decision we’re a
actual investment decision we’re a
actual investment decision we’re a similar percentage of those roles at
similar percentage of those roles at
similar percentage of those roles at accelerators and corporate venture funds
accelerators and corporate venture funds
accelerators and corporate venture funds and women are only about a quarter of
and women are only about a quarter of
and women are only about a quarter of active angel investors so people who are
active angel investors so people who are
active angel investors so people who are investing their own money directly into
investing their own money directly into
investing their own money directly into companies kind of like on Shark Tank and
companies kind of like on Shark Tank and
companies kind of like on Shark Tank and so all the money that is flowing into
so all the money that is flowing into
so all the money that is flowing into this innovation economy right now
this innovation economy right now
this innovation economy right now creating jobs and driving economic
creating jobs and driving economic
creating jobs and driving economic output really isn’t coming from or
output really isn’t coming from or
output really isn’t coming from or controlled by women so where is the
controlled by women so where is the
controlled by women so where is the money going women got about 10 percent
money going women got about 10 percent
money going women got about 10 percent of venture dollars and roughly 17
of venture dollars and roughly 17
of venture dollars and roughly 17 percent of Angel dollars over the last
percent of Angel dollars over the last
percent of Angel dollars over the last five years and for context about a
five years and for context about a
five years and for context about a hundred billion dollars was invested by
hundred billion dollars was invested by
hundred billion dollars was invested by venture funds angels and corporations in
venture funds angels and corporations in
venture funds angels and corporations in this space just in the last year but
this space just in the last year but
this space just in the last year but there are a couple of really important
there are a couple of really important
there are a couple of really important questions to ask about these statistics
questions to ask about these statistics
questions to ask about these statistics in particular the first is what kinds of
in particular the first is what kinds of
in particular the first is what kinds of companies are women starting well of the
companies are women starting well of the
companies are women starting well of the of the companies that women are starting
of the companies that women are starting
of the companies that women are starting women are starting about 20 to 30
women are starting about 20 to 30
women are starting about 20 to 30 percent of new companies only a subset
percent of new companies only a subset
percent of new companies only a subset of those are in what we
of those are in what we
of those are in what we considered high growth sectors that tend
considered high growth sectors that tend
considered high growth sectors that tend to attract venture capital and so it’s
to attract venture capital and so it’s
to attract venture capital and so it’s it’s likely that women worry that
it’s likely that women worry that
it’s likely that women worry that raising venture capital is going to be
raising venture capital is going to be
raising venture capital is going to be difficult for them and so they’re less
difficult for them and so they’re less
difficult for them and so they’re less likely to seek it out and so in that way
likely to seek it out and so in that way
likely to seek it out and so in that way it’s a little bit of a self-fulfilling
it’s a little bit of a self-fulfilling
it’s a little bit of a self-fulfilling prophecy
prophecy
prophecy but a study by Harvard Business School
but a study by Harvard Business School
but a study by Harvard Business School found that investors prefer pitches from
found that investors prefer pitches from
found that investors prefer pitches from male entrepreneurs over those a female
male entrepreneurs over those a female
male entrepreneurs over those a female entrepreneurs even when the content of
entrepreneurs even when the content of
entrepreneurs even when the content of those pitches is the exact same so it’s
those pitches is the exact same so it’s
those pitches is the exact same so it’s probably not that women are only
probably not that women are only
probably not that women are only starting baby and beauty companies that
starting baby and beauty companies that
starting baby and beauty companies that men are less likely to understand even
men are less likely to understand even
men are less likely to understand even if they’re pitching cybersecurity or
if they’re pitching cybersecurity or
if they’re pitching cybersecurity or virtual reality they’re at an inherent
virtual reality they’re at an inherent
virtual reality they’re at an inherent disadvantage based solely on their
disadvantage based solely on their
disadvantage based solely on their gender so let’s step back and look a
gender so let’s step back and look a
gender so let’s step back and look a little bit more broadly at society women
little bit more broadly at society women
little bit more broadly at society women now control over half the personal
now control over half the personal
now control over half the personal wealth in this country and millennial
wealth in this country and millennial
wealth in this country and millennial women in particular are part of a
women in particular are part of a
women in particular are part of a generation that stands to inherit 30
generation that stands to inherit 30
generation that stands to inherit 30 trillion dollars it’s a huge number and
trillion dollars it’s a huge number and
trillion dollars it’s a huge number and women aren’t just inheriting wealth
women aren’t just inheriting wealth
women aren’t just inheriting wealth they’re earning it over 40% of women now
they’re earning it over 40% of women now
they’re earning it over 40% of women now out or in their spouses
and that number is only going to
and that number is only going to continue to grow as for the first time
continue to grow as for the first time
continue to grow as for the first time in history we have more women a majority
in history we have more women a majority
in history we have more women a majority of women working outside of the home and
of women working outside of the home and
of women working outside of the home and most of us are going to be the sole
most of us are going to be the sole
most of us are going to be the sole financial decision maker for our
financial decision maker for our
financial decision maker for our households at least once if not twice in
households at least once if not twice in
households at least once if not twice in our lives as women are staying single
our lives as women are staying single
our lives as women are staying single longer and on the other side often out
longer and on the other side often out
longer and on the other side often out living their partners and regardless of
living their partners and regardless of
living their partners and regardless of what stage of life women make the vast
what stage of life women make the vast
what stage of life women make the vast majority of purchase decisions in this
majority of purchase decisions in this
majority of purchase decisions in this country we decide where the trillions of
country we decide where the trillions of
country we decide where the trillions of dollars of disposable income is spent we
dollars of disposable income is spent we
dollars of disposable income is spent we decide what products and services
decide what products and services
decide what products and services succeed or fail whether its buying a
succeed or fail whether its buying a
succeed or fail whether its buying a home or car or appliances or furniture
home or car or appliances or furniture
home or car or appliances or furniture or apparel we literally drive the
or apparel we literally drive the
or apparel we literally drive the consumer economy and on top of all of
consumer economy and on top of all of
consumer economy and on top of all of this the companies that we help to lead
this the companies that we help to lead
this the companies that we help to lead do better and they don’t just do a
do better and they don’t just do a
do better and they don’t just do a little better they do a lot better
little better they do a lot better
little better they do a lot better so starting small just with private
so starting small just with private
so starting small just with private technology companies studies have found
technology companies studies have found
technology companies studies have found that those with women in leadership
that those with women in leadership
that those with women in leadership provide a 35% higher return on
provide a 35% higher return on
provide a 35% higher return on investment looking more broadly at just
investment looking more broadly at just
investment looking more broadly at just private companies an early-stage fund
private companies an early-stage fund
private companies an early-stage fund that’s been investing for over a decade
that’s been investing for over a decade
that’s been investing for over a decade and has over 300 private companies in
and has over 300 private companies in
and has over 300 private companies in its portfolio found that those with at
its portfolio found that those with at
its portfolio found that those with at least one woman on the founding team
least one woman on the founding team
least one woman on the founding team created 63% more value than those
created 63% more value than those
created 63% more value than those companies founded by all-male teams so
companies founded by all-male teams so
companies founded by all-male teams so from the time that they invested the
from the time that they invested the
from the time that they invested the value of the company then to the time of
value of the company then to the time of
value of the company then to the time of the value the value of the company when
the value the value of the company when
the value the value of the company when they exited or the most recent valuation
they exited or the most recent valuation
they exited or the most recent valuation was 63% higher and it’s not just
was 63% higher and it’s not just
was 63% higher and it’s not just technology companies or private
technology companies or private
technology companies or private companies researchers looked at over
companies researchers looked at over
companies researchers looked at over 20,000 public companies in over 91
20,000 public companies in over 91
20,000 public companies in over 91 countries and across a variety of
countries and across a variety of
countries and across a variety of industries and sectors and found that
industries and sectors and found that
industries and sectors and found that those with women
those with women
those with women in at least 30 percent of leadership
in at least 30 percent of leadership
in at least 30 percent of leadership positions added 6% to net profit margin
positions added 6% to net profit margin
positions added 6% to net profit margin so we were driving revenue higher and
so we were driving revenue higher and
so we were driving revenue higher and making expenses lower this is a huge
making expenses lower this is a huge
making expenses lower this is a huge dislocation women have
dislocation women have
dislocation women have money to invest women who need money to
money to invest women who need money to
money to invest women who need money to build companies and are more likely to
build companies and are more likely to
build companies and are more likely to do well with it are basically ignored by
do well with it are basically ignored by
do well with it are basically ignored by the current market so why aren’t these
the current market so why aren’t these
the current market so why aren’t these investment dollars flowing in to these
investment dollars flowing in to these
investment dollars flowing in to these overlooked opportunities for a variety
overlooked opportunities for a variety
overlooked opportunities for a variety of biologic and economic reasons
of biologic and economic reasons
of biologic and economic reasons men and women behave differently and
men and women behave differently and
men and women behave differently and they act differently and in many ways
they act differently and in many ways
they act differently and in many ways that’s extremely beneficial and
that’s extremely beneficial and
that’s extremely beneficial and important and it’s probably absolutely
important and it’s probably absolutely
important and it’s probably absolutely one of the reasons that diverse teams
one of the reasons that diverse teams
one of the reasons that diverse teams perform better but when it comes to our
perform better but when it comes to our
perform better but when it comes to our attitudes towards money and finance
attitudes towards money and finance
attitudes towards money and finance we’re stunting our own growth women tend
we’re stunting our own growth women tend
we’re stunting our own growth women tend to be savers and cautious spenders we
to be savers and cautious spenders we
to be savers and cautious spenders we want to grow our wealth but we don’t
want to grow our wealth but we don’t
want to grow our wealth but we don’t feel as confident or in control of our
feel as confident or in control of our
feel as confident or in control of our financial futures as our male
financial futures as our male
financial futures as our male counterparts and we’re worriers right
counterparts and we’re worriers right
counterparts and we’re worriers right and so we worry that we just don’t know
and so we worry that we just don’t know
and so we worry that we just don’t know enough and so as a result we tend to
enough and so as a result we tend to
enough and so as a result we tend to wait to make financial decisions or we
wait to make financial decisions or we
wait to make financial decisions or we just avoid making them all together we
just avoid making them all together we
just avoid making them all together we don’t really even give ourselves the
don’t really even give ourselves the
don’t really even give ourselves the chance to take risk and I’ve seen this
chance to take risk and I’ve seen this
chance to take risk and I’ve seen this firsthand in my angel group in New York
firsthand in my angel group in New York
firsthand in my angel group in New York we’re now 70 members strong all young
we’re now 70 members strong all young
we’re now 70 members strong all young professionals in their late 20s and
professionals in their late 20s and
professionals in their late 20s and early 30s and we’ve really struggled to
early 30s and we’ve really struggled to
early 30s and we’ve really struggled to attract young women who were high
attract young women who were high
attract young women who were high earners earlier than their careers the
earners earlier than their careers the
earners earlier than their careers the most common response I hear is I really
most common response I hear is I really
most common response I hear is I really don’t feel comfortable and confident
don’t feel comfortable and confident
don’t feel comfortable and confident enough to make those kinds of financial
enough to make those kinds of financial
enough to make those kinds of financial decisions and I’ll probably just figure
decisions and I’ll probably just figure
decisions and I’ll probably just figure my money out later the women who do join
my money out later the women who do join
my money out later the women who do join our group usually fit one of two
our group usually fit one of two
our group usually fit one of two archetypes either as part of their day
archetypes either as part of their day
archetypes either as part of their day jobs they’re used to making decisions
jobs they’re used to making decisions
jobs they’re used to making decisions around risk or there are women who join
around risk or there are women who join
around risk or there are women who join with their husbands and they co-manage
with their husbands and they co-manage
with their husbands and they co-manage most or all of their finances in my role
most or all of their finances in my role
most or all of their finances in my role as a venture capitalist we recently
as a venture capitalist we recently
as a venture capitalist we recently hired an associate and in the almost
hired an associate and in the almost
hired an associate and in the almost 1,000 inbound resumes that I received
1,000 inbound resumes that I received
1,000 inbound resumes that I received only a small portion were from women so
only a small portion were from women so
only a small portion were from women so we had to do a lot of outbound outreach
we had to do a lot of outbound outreach
we had to do a lot of outbound outreach women have lower hubris and higher
women have lower hubris and higher
women have lower hubris and higher humility we underestimate ourselves and
humility we underestimate ourselves and
humility we underestimate ourselves and so it’s not really surprising that we
so it’s not really surprising that we
so it’s not really surprising that we lack the confidence to make financial
lack the confidence to make financial
lack the confidence to make financial decisions for ourselves certainly but
decisions for ourselves certainly but
decisions for ourselves certainly but I’d argue that that’s also a barrier for
I’d argue that that’s also a barrier for
I’d argue that that’s also a barrier for many women to consider careers as
many women to consider careers as
many women to consider careers as professional invest
professional invest
professional invest and make those decisions with other
and make those decisions with other
and make those decisions with other people’s money we need to fundamentally
people’s money we need to fundamentally
people’s money we need to fundamentally shift that mindset to shift the market
shift that mindset to shift the market
shift that mindset to shift the market we need women to participate because
we need women to participate because
we need women to participate because participation is empowering and
participation is empowering and
participation is empowering and empowerment is what builds that
empowerment is what builds that
empowerment is what builds that confidence we need to embrace financial
confidence we need to embrace financial
confidence we need to embrace financial risk as a positive that’s been the
risk as a positive that’s been the
risk as a positive that’s been the hardest thing for me because I am far
hardest thing for me because I am far
hardest thing for me because I am far from a natural-born risk-taker I was
from a natural-born risk-taker I was
from a natural-born risk-taker I was born and raised in Cincinnati Ohio and
born and raised in Cincinnati Ohio and
born and raised in Cincinnati Ohio and my father is a lawyer whose job is
my father is a lawyer whose job is
my father is a lawyer whose job is basically to come in and deal with
basically to come in and deal with
basically to come in and deal with situations that have gone really badly
situations that have gone really badly
situations that have gone really badly so building collapses and fires he
so building collapses and fires he
so building collapses and fires he taught me to always plan for the
taught me to always plan for the
taught me to always plan for the worst-case scenario and who taught me to
worst-case scenario and who taught me to
worst-case scenario and who taught me to travel with duct tape which I kid you
travel with duct tape which I kid you
travel with duct tape which I kid you not I actually bought to Richmond
not I actually bought to Richmond
not I actually bought to Richmond Virginia and if with this background
Virginia and if with this background
Virginia and if with this background that I lost every penny that I put into
that I lost every penny that I put into
that I lost every penny that I put into my first private investment and on paper
my first private investment and on paper
my first private investment and on paper that was devastating this money that I
that was devastating this money that I
that was devastating this money that I had worked so hard for early in my
had worked so hard for early in my
had worked so hard for early in my career was just gone but successful
career was just gone but successful
career was just gone but successful risk-taking isn’t brash and reckless we
risk-taking isn’t brash and reckless we
risk-taking isn’t brash and reckless we often confuse risk with impulse but
often confuse risk with impulse but
often confuse risk with impulse but smart risk-taking is actually very
smart risk-taking is actually very
smart risk-taking is actually very well-planned
well-planned
well-planned when you’re looking at making an
when you’re looking at making an
when you’re looking at making an investment you spend a lot of the time
investment you spend a lot of the time
investment you spend a lot of the time leading up to it evaluating the pros and
leading up to it evaluating the pros and
leading up to it evaluating the pros and cons you try to figure out what the key
cons you try to figure out what the key
cons you try to figure out what the key questions are that you need to answer to
questions are that you need to answer to
questions are that you need to answer to make a decision if you can answer those
make a decision if you can answer those
make a decision if you can answer those questions then you’ve done your best
questions then you’ve done your best
questions then you’ve done your best diligence the hard part of course is
diligence the hard part of course is
diligence the hard part of course is figuring out what questions to ask
figuring out what questions to ask
figuring out what questions to ask when I was looking at this investment I
when I was looking at this investment I
when I was looking at this investment I spent all of my time looking at the
spent all of my time looking at the
spent all of my time looking at the product and the market and I basically
product and the market and I basically
product and the market and I basically ignored the people that I was relying on
ignored the people that I was relying on
ignored the people that I was relying on to actually execute all of it they
to actually execute all of it they
to actually execute all of it they seemed really nice and super capable and
seemed really nice and super capable and
seemed really nice and super capable and really fun to be around and I’m sure it
really fun to be around and I’m sure it
really fun to be around and I’m sure it would be they’ll be fine
would be they’ll be fine
would be they’ll be fine well it turned out that they actually
well it turned out that they actually
well it turned out that they actually had a whole personal history together
had a whole personal history together
had a whole personal history together that I didn’t know anything about and
that I didn’t know anything about and
that I didn’t know anything about and they couldn’t make any decisions without
they couldn’t make any decisions without
they couldn’t make any decisions without arguing and that’s why the company went
arguing and that’s why the company went
arguing and that’s why the company went under and as it happens one of the most
under and as it happens one of the most
under and as it happens one of the most common reasons that startups and small
common reasons that startups and small
common reasons that startups and small businesses fail is because of founder
businesses fail is because of founder
businesses fail is because of founder issues people who just can’t get along
issues people who just can’t get along
issues people who just can’t get along and manage the business together and I
and manage the business together and I
and manage the business together and I I may not have learned that if this
I may not have learned that if this
I may not have learned that if this company hadn’t gone under in that way
company hadn’t gone under in that way
company hadn’t gone under in that way one of my goals with early stage
one of my goals with early stage
one of my goals with early stage investing has always been to learn about
investing has always been to learn about
investing has always been to learn about people and technology and business and
people and technology and business and
people and technology and business and in a sort of backwards way losing the
in a sort of backwards way losing the
in a sort of backwards way losing the first money that I put in actually
first money that I put in actually
first money that I put in actually helped me to accomplish that goal and so
helped me to accomplish that goal and so
helped me to accomplish that goal and so the second thing we need to do is set
the second thing we need to do is set
the second thing we need to do is set goals is it the dollars and cents that I
goals is it the dollars and cents that I
goals is it the dollars and cents that I get back is it doing good in the world
get back is it doing good in the world
get back is it doing good in the world is it learning the best investment
is it learning the best investment
is it learning the best investment advice that I’ve ever received is
advice that I’ve ever received is
advice that I’ve ever received is imagine the world as it should be and
imagine the world as it should be and
imagine the world as it should be and invest in that return isn’t always
invest in that return isn’t always
invest in that return isn’t always monetary and that’s especially important
monetary and that’s especially important
monetary and that’s especially important for women who tend to prefer investments
for women who tend to prefer investments
for women who tend to prefer investments in opportunities and people and causes
in opportunities and people and causes
in opportunities and people and causes that they care about and that’s a very
that they care about and that’s a very
that they care about and that’s a very important and special differentiator as
important and special differentiator as
important and special differentiator as I mentioned before women are the
I mentioned before women are the
I mentioned before women are the decision-makers so certainly for herself
decision-makers so certainly for herself
decision-makers so certainly for herself and her household but often indirectly
and her household but often indirectly
and her household but often indirectly through influence so even if she isn’t
through influence so even if she isn’t
through influence so even if she isn’t making a purchase herself she Austin has
making a purchase herself she Austin has
making a purchase herself she Austin has a vote or veto women are uniquely
a vote or veto women are uniquely
a vote or veto women are uniquely positioned to evaluate products and
positioned to evaluate products and
positioned to evaluate products and services that target them as those
services that target them as those
services that target them as those decision makers as well as any kind of
decision makers as well as any kind of
decision makers as well as any kind of business that’s being founded by another
business that’s being founded by another
business that’s being founded by another woman and that’s our edge every investor
woman and that’s our edge every investor
woman and that’s our edge every investor has some sort of edge in my role as a
has some sort of edge in my role as a
has some sort of edge in my role as a venture capitalist it’s having access to
venture capitalist it’s having access to
venture capitalist it’s having access to one of the largest technology companies
one of the largest technology companies
one of the largest technology companies in the world and being able to leverage
in the world and being able to leverage
in the world and being able to leverage that product and market insight to try
that product and market insight to try
that product and market insight to try to identify trends earlier than others
to identify trends earlier than others
to identify trends earlier than others with my angel group it’s the makeup of
with my angel group it’s the makeup of
with my angel group it’s the makeup of our membership while most angel groups
our membership while most angel groups
our membership while most angel groups are older white and male were young and
are older white and male were young and
are older white and male were young and diverse we’re the target market for many
diverse we’re the target market for many
diverse we’re the target market for many of the companies that we look at our
of the companies that we look at our
of the companies that we look at our most successful investments have been in
most successful investments have been in
most successful investments have been in companies targeting urban professionals
companies targeting urban professionals
companies targeting urban professionals new parents digital natives and most of
new parents digital natives and most of
new parents digital natives and most of the companies that we look at are
the companies that we look at are
the companies that we look at are founded by our peers so we’re best
founded by our peers so we’re best
founded by our peers so we’re best positioned to evaluate their story and
positioned to evaluate their story and
positioned to evaluate their story and experience the exact same is true for
experience the exact same is true for
experience the exact same is true for women they’re the target market for many
women they’re the target market for many
women they’re the target market for many products and services that are being
products and services that are being
products and services that are being founded and they can simply better
founded and they can simply better
founded and they can simply better relate to an under
relate to an under
relate to an under stand the perspective of a female
stand the perspective of a female
stand the perspective of a female founder regardless of what kind of
founder regardless of what kind of
founder regardless of what kind of business she’s starting and so it’s time
business she’s starting and so it’s time
business she’s starting and so it’s time that we pair women’s wealth with the
that we pair women’s wealth with the
that we pair women’s wealth with the women who can grow it we need to take
women who can grow it we need to take
women who can grow it we need to take our money invest it in ourselves and
our money invest it in ourselves and
our money invest it in ourselves and reap the benefits ourselves we need
reap the benefits ourselves we need
reap the benefits ourselves we need every woman to take even 5% of her
every woman to take even 5% of her
every woman to take even 5% of her investable assets and put it in a woman
investable assets and put it in a woman
investable assets and put it in a woman run venture or with a fund whose thesis
run venture or with a fund whose thesis
run venture or with a fund whose thesis includes investing in diverse teams even
includes investing in diverse teams even
includes investing in diverse teams even if it isn’t in a venture earth or a
if it isn’t in a venture earth or a
if it isn’t in a venture earth or a small business you can put your money
small business you can put your money
small business you can put your money with a mutual fund that has a female
with a mutual fund that has a female
with a mutual fund that has a female manager or in the stock of a public
manager or in the stock of a public
manager or in the stock of a public company with a female CEO we can own our
company with a female CEO we can own our
company with a female CEO we can own our financial future and we can do good in
financial future and we can do good in
financial future and we can do good in the world and we can help other women or
the world and we can help other women or
the world and we can help other women or we can just make money but we have to do
we can just make money but we have to do
we can just make money but we have to do it now when no one else is because this
it now when no one else is because this
it now when no one else is because this is our market for the taking
”
Be First to Comment