The podcast discusses investing in women-led and focused businesses, exploring the challenges faced by women entrepreneurs in the VC industry and the low percentage of VC funding that goes to women. It also highlights the opportunity for investment in businesses that cater to women's needs, particularly in the child care market. The speakers touch on personal backgrounds and the potential impact of Silicon Valley Bank's collapse on investors.
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Quick takeaways
Only 2% of venture capital funding goes towards women-founded companies, highlighting the lack of funding for women-led businesses.
Limited partner funding and funneling into specific venture capital funds in Silicon Valley contribute to the limited funding allocated to women-led businesses.
Deep dives
Investing in Women-led Businesses
Venture capitalist Jesse Draper discusses the challenges and opportunities in investing in women-led businesses. She highlights the lack of funding for women-founded companies, with only 2% of venture capital funding going towards women in the past year. Draper emphasizes the importance of diversity and the need for change in the industry. She shares her own experiences as a female investor and the success of her portfolio companies, which are primarily led by women. Draper also talks about her focus on the future of families, particularly in the childcare sector, where there is a significant opportunity for investment and growth.
The Impact of Lack of Funding for Women-led Businesses
Draper addresses the impact of the limited funding allocated to women-led businesses, explaining that it stems from the LP (limited partner) level, where capital is often funneled into the same five venture capital funds in Silicon Valley. She calls for more visibility and accountability regarding where capital is being invested. Despite the challenges, Draper remains optimistic and continues to actively source and evaluate deals, aiming to invest in a diverse range of high-potential companies.
Current Challenges in Exits and the Impact of VC Market Conditions
Draper discusses the current challenges in achieving successful exits for startups, particularly due to market uncertainties and liquidity concerns. She advises entrepreneurs to focus on building profitable businesses and to consider M&A (mergers and acquisitions) or IPO (initial public offering) options when the market stabilizes. Draper also shares her experience with the collapse of Silicon Valley Bank and highlights the opportunities in the FinTech sector, which is expected to witness innovation and growth amidst industry consolidation.
Jesse Draper, Founding Partner of Halogen VC, discusses investing in women-led and focused businesses. Hosts: Carol Massar and Matt Miller. Producer: Paul Brennan.