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Networks bring ideas and innovation to life – including connecting into the necessary investment dollars. When networks are narrow, so by definition, are the possible winning ideas. With venture investment out-pacing 2017’s decade-high total for capital invested (the Q2 2018 Pitchbook-NVCA Venture Monitor report just came out and it reveals that thus far in 2018, $57.5 billion has been invested across 4,000 deals) it is critical for capital to gain access to a wider, more diverse range of networks (aka ideas).
Earlier this spring, Arlan Hamilton, founder and managing partner of Backstage Capital announced a $36 million dollar fund investing exclusively in Black, LGBTQ, Hispanic and women founders. And New York based Female Founders Fund closed Fund II ($27 million) in May to continue investing in leading female-founded technology companies (Rent The Runway, Shine, Tala, and Zola are portfolio companies). Sutian Dong, Partner, Female Founder Fund is thrilled by the incredible momentum from other female fund managers who are announcing exciting new funds and initiatives. She notes that "the landscape is changing - there's a new guard of VCs who bring different perspectives and networks to the table."
For those looking for a change in the face of venture capital, listed below are ten more female-founded funds to keep your eyes on (and to connect with). It is worth stressing (again) that all of the investors highlighted on this list launched their funds by leveraging existing relationships. They have also positioned their funds for successful future raises by strategically making new connections during those initial fundraising efforts.
Three more networking takeaways you should make note of (whether you're in venture or not) before you dive into each fund's network leveraging strategies and advice:
- Relationships are vital but equally so are the results you produce.
- Connections originally made for one business reason, could fuel the next iteration of your career .
- Don’t overlook your closest relationships when you’re pursuing a big objective.
Aligned Partners
Menlo Park based Aligned Partners is the only all-female VC firm on Sand Hill Road. They are closing their third institutional fund.
Aligned Partners is a Series A investor, investing exclusively in B2B. The unicorns they seek are highly capital-efficient companies: founders who want to raise “as little money as they can get away with, not as much money as they can get away with” (as Jodi Sherman Jahic describes the fund’s ideal startup).
Jahic and fund co-founder Susan Mason have long roots in the venture business (each has over 20 years of investing, operating and management experience. As to the most important aspects of forming their firm in 2011 and successfully raising three funds since then, Jahic credits this to having a unique value proposition, an authentic voice, a deep commitment to a disciplined strategy – and, most importantly results. Nothing happens Jahic stresses, without great results.
Halogen Ventures
Los Angeles based Halogen Ventures invests in female-founded consumer technology at the seed and Series A stage.
Before venture, Jesse Draper ran one of the first technology talk shows for 10 years (the Emmy nominated 'The Valley Girl Show'). The show provided Draper with access to early stage and later stage technology companies (Drew Houston CEO and co-founder of Dropbox had his very first interview with Draper). The show was also Draper’s path to start investing in emerging technology companies. Her investments in Sugarfina and Laurel & Wolf Interior Design came about this way. The tech show network also provided her with an opportunity to spend time with and learn from great entrepreneurs (from Ted Turner to Marc Cuban to Jenn Hyman and Jessica Alba), ultimately adding more momentum to her firm. Quite a few of Draper’s original 'Valley Girl Show' guests are investors in Halogen Ventures.
Urban Innovation Fund
Based in San Francisco, The Urban Innovation Fund provides seed capital and regulatory support to entrepreneurs shaping the future of cities and solving the toughest urban challenges (i.e. transportation, real estate, and the future of work). The firm announced the closing of its first $22.5 million fund back in June (and has already made 14 investments).
Managing Partner Clara Brenner’s top networking tip is to “embrace your inner stalker (in a non-creepy way)”. When you're trying to scale great heights, you need the backing of a network Brenner advises, so don’t leave any stone unturned (not matter how small or inconsequential it appears).
Glasswing Ventures
Boston based Glasswing Ventures provides earliest stage funding (pre-seed and seed) for companies leveraging AI for enterprise platforms and cybersecurity markets. Glasswing just announced their $112 million debut fund.
According to Rudina Seseri, Founder and Managing Partner of Glasswing, having roots in the VC world helped them tremendously in raising the $112 million debut fund. Seseri has over 16 years of investing and transactional experience, having led technology investments and acquisitions in SaaS, IT Software and data, marketing technologies and robotics startups. Throughout her career, she has developed relationships with people who share a passion for how technology (and AI in particular) can transform our lives. These connections (academics, business leaders and entrepreneurs) now form Advisory Councils that exclusively advise Glasswing. This network and these exclusive relationships is a key differentiator Sesari notes, emphasizing again how it helped them raise their debut fund (the largest AI-focused fund on the East Coast).
Fika Ventures
Los Angeles based Fika Ventures invests in Enterprise/B2B/Saas, Fintech, Marketplaces, and Health IT. Prior to Fika, general partner Eva Ho was a founding general partner at Susa Ventures, held product marketing roles at Google and YouTube and founding roles in various emerging tech ventures. Ho is also active in the non-profit sector, serving on the boards of California Community Foundation, Ocean Conservancy, First Descents, and Iridescent.
Fika’s fund raising strategy was to approach founders whose ventures they had previously backed to be the first investors in the new fund. Ho notes that this strategy has provided great validation for Fika’s value to portfolio companies, and has helped to open doors to more institutional investors who really care about the “people skills” in fund managers.
Ho and Fika’s other general partner TX Zhuo, also relied on a broad reference list that spoke to the arc of their careers. These references provided a comprehensive perspective on Ho and Zhuo (what they care about, how they lead and operate). As Ho notes “being able to talk to people who have known me for most of my professional life gave prospective limited partners the comfort they needed to make an investment decision”.
SoGal Ventures
New York, Singapore and China based SoGal Ventures is focused on diverse founding teams building global-first borderless businesses revolutionizing how the next generation lives, works and stays healthy. This female led millennial venture fund invests from the pre-seed to Series A stage in consumer tech, enterprise software, and health tech.
Networking has been critical to the fundraising process at SoGal founding partner Elizabeth Galbut tells me, as the vast majority of SoGal’s LPs are not close friends and family or investors they had deep relationships with before their initial fundraise. Galbut and co-founder Pocket Sun have pursued a networking strategy that includes speaking at conferences across the globe, asking founders for introductions into networks, and proactive outreach to individuals the founding team admires. Their hustle is paying off: this micro VC has made 52 investments to date.
1843 Capital
Based in Greenwich CT, 1843 Capital invests in Series A and B, Enterprise Software, Cybersecurity, Silvertech (technology for the aging population). The founding team (Tracy Chadwell and Alison Andrews Reyes) has experience in venture investing, hardware, software and operations: experience and relationships that were critical to their raise. Chadwell tells me that 1843’s initial investor base is comprised of people she or Reyes had worked for or with in the past, and adds that the network expanded to include great resources for deal flow and partnerships after the raise.
Illuminate Ventures
Founded by Cindy Padnos, Oakland, CA based Illuminate Ventures is an enterprise/B2B software focused venture firm. Illuminate invests at the Series Seed to A stages.
Building relationships is key to establishing a new Venture Capital firm , Padnos tells me. She notes it takes the support of a wide array of resources to raise capital, gain access to great investments, syndicate with like-minded investors and achieve strong outcomes (Padnos should know – she has over 25 years of high tech industry experience). For Illuminate, the ongoing strategy is leveraging a lifetime of contacts not just when the need to raise capital arises, rather more importantly on an ongoing basis to help their founders succeed.
Brilliant Ventures
Brilliant Ventures is another Los Angeles based venture fund. Founded by Kara Weber and Lizzie Francis, Brilliant Ventures invests capital (along with their go-to-market expertise) in diverse founding teams that are transforming the future of commerce.
Leveraging networks was vital to launching the fund, Weber tells me. Here’s how they did it:
- Being fearless about asking both experienced and first-time investors to write checks, including family, friends and neighbors.
- Identifying and engaging potential investors who could be strong references for other investors (Weber notes that several investors in the fund are successful VCs/founders).
- Weber and Francis put ego aside, dug deep into existing networks then worked furiously to expand their networks.
Expanding a network is time consuming in the short-term but critical in the long-term . Weber explains that by building that wider network they has increased deal-flow and created a strong roadmap for a future fundraise (plus gained invaluable insights into optimal fund planning and management along the way). Plus she notes, the institutional investors who didn’t invest in the first fund have proven to be some of Weber’s most valuable allies (referring deals, making introductions, and extending invitations).
Relentless Venture Fund
This Vancouver, B.C. based venture fund invests at early-stage, seed and Series A in preventative and proactive health startups. Managing partner and co-founder Brenda Irwin, offers these network-building suggestions to achieve your venture goals:
Be patient: Build relationships before asking for money. When Brenda meets with potential limited partner investors for the first time she focuses on developing her relationship with them. Establishing trust and confidence (including listening for ways to support them in other interests) comes well before the investment pitch.
Raise your fund’s profile by pursuing targeted speaking opportunities. Choose your speaking engagements wisely based on opportunities to highlight your expertise. Then, Brenda advises, promote the heck out of your involvement via your own networks (especially on Twitter and Linkedin) as this will keep your name and your fund’s name top of mind. Over a seven-month period prior to actively raising her fund, Brenda shared the breadth of her expertise and investing experience from sport technology to disruptive health technology in carefully selected conferences (digital health, men’s health, sports tech) in key markets across Canada. Brenda notes that these speaking opportunities enable you to engage with prospective limited partners in attendance (many conferences have apps to connect attendees) or be proactive by extending invitations to investors you’re interested in meeting (many conferences provide speakers with a complimentary registration).
Leverage the connecting potential of your phone by taking pictures at events and sharing them. Brenda takes and shares a lot of images and a picture it seems is worth more than a thousand words: for Brenda, pictures have fueled new relationships, including new deal flow for the fund. Brenda has discovered that taking great, candid “healthy lifestyle” photos is simple marketing hack for her to spread her fund’s message. Most people she notes, will retweet, repost or like an image that includes them.
