The Evidence Is In: Investing in Women Yields Better Returns

This month, we’re celebrating some powerful wins for women in the startup world, from the Female Founders Fund’s milestone return on Fund I to Maven Clinic’s groundbreaking valuation. These achievements highlight the potential that women-led ventures have to disrupt industries, innovate in underserved areas, and deliver returns that are as high, if not higher, than their male-led counterparts. Yet, the funding gap remains real. That’s why we’re also diving into actionable advice for founders working with boards, as well as sharing resources and upcoming events that will empower you to thrive.

Let’s dive in!

Female Founders Fund Returns Fund I: Why It’s Big News for Female Founders

After 10 years, the Female Founders Fund (FFF) founded by Anu Duggal al has fully returned its $5.85 million Fund I, making it one of the few women-focused funds to achieve full returns on an initial fund. FFF’s journey speaks volumes for the potential of women-led businesses, which historically receive just 2% of VC funding in the US, despite women representing 38% of founders. The fund’s investments include early-stage companies like Peanut, Co-Star, and Maven, which are transforming their industries and proving that investing in women founders is not just a social cause—it’s a profitable one.

Research supports this too: women-led startups generate 78 cents of revenue per dollar invested, compared to 31 cents for male-led companies. Greater participation of women in entrepreneurship could boost global GDP by as much as $5 trillion. It’s time to rethink where investments flow.

Another major win for women’s health!

Maven Clinic, led by CEO Kate Ryder, recently raised $125 million, achieving a $1.7 billion valuation. Maven’s focus on women’s healthcare across the reproductive lifecycle is a reminder of the potential of women-led businesses to solve big problems in underserved areas. Their success underscores the power of women-driven innovation and the importance of diverse solutions in healthcare.

Your Board of Directors is Probably Going to Fire You

Here’s some frank advice for founders: boards are there to monitor their investment, not just to support you. The reality is, 50% of founders are replaced by year three. But by being proactive, you can build stronger, more constructive relationships with your board.

How to stay in control of your board:

1. Control board composition – Maintain as much founder control as possible over board seats.

2. Build one-on-one relationships – Connect with board members individually, which keeps the conversations focused and reduces the chance of group surprises.

3. No surprises – Share important updates personally before board meetings.

4. Avoid open discussions – While advice can be valuable, ask for it outside board meetings to keep discussions concise and decisive.

Investment corner:

Securing funding as a female founder can be challenging, but there’s support out there. Here are some opportunities:

• Download my extensive list of VCs, Angel Investors and Accelerators across the globe investing in women founders.

• BBG Ventures New $60M Fund: BBG Ventures res has raised a $60 million fund to support diverse founders in healthcare, fintech, and AI. Backed by Pivotal Ventures and Fairview Capital, the fund reflects the firm’s mission to address the sharp funding gaps facing underrepresented founders.

• Brains Accelerator: Applications open for the 2025 cohort, supporting scientists and technologists with visionary projects. Apply here.

• Proximity Ventures: Actor and director Olivia Wilde’s new VC fund focuses on consumer and enterprise sectors, already securing four investments, including biotech.

Resources Corner:

Here are some tools and guides to support your founder journey:

• Sample Size Calculator: For precise market research calculations. Use it here.

• Financial Model: Discover why your financial model is just as important as your pitch deck. Read here.

• Startup Equity Guide: Learn how to structure equity for early hires. Explore here.

Upcoming events:

• Web Summit: November 11-14, 2024, Lisbon 🇵🇹. One of the largest tech conferences, featuring tracks on AI, SaaS, and social impact. Register here.

• Slush: November 20-21, 2024, Helsinki 🇫🇮. The largest Nordic tech event, connecting founders with VCs for pitching and networking. Register here.

• Pitch HearstLab: The premier competition for women-led startups. Next stop: November 12, 2024, Atlanta 🇺🇸. Register here.

With the momentum of the Female Founders Fund and Maven’s billion-dollar valuation, we’re reminded that investing in women is about building a more innovative, resilient, and profitable future. Let’s continue pushing for meaningful change, bringing diverse voices to the table, and showcasing the untapped potential of women founders.

As always, if you’re a female founder with a story to share or in need of support, I’m here to connect. Let’s keep building a future where women entrepreneurs thrive.

Until next time,

Sarah