After a decade of mentoring female founders in metro Atlanta, the Launchpad2X program is coming to an end.
The decision is a result of a lack of funding, a decrease in applicants and a non-willingness to adapt to needed changes, said the program’s president Christy Brown.
Following the pandemic, the program had less applicants. Founders wanted a program that included access to capital, which Launchpad2X couldn't provide. Launchpad2X attempted to provide financial resources earlier this year with a $250,000 fund, but wasn’t successful at raising funding.
“We saw half the audience we did before, and as a nonprofit, we couldn’t keep investing in workshops not attended,” said Brown. “We had to figure out whether the curriculum doesn't work, or we’re not scaling the way we need it. The decision is best to wind down.”
The closure comes amid a downturn for tech companies and startups in Atlanta. Less venture capital is flowing into local companies, and some startups have started to lay off employees to cut operating costs, a reaction to shifting investor interests. Female-led startups have historically raised a small percentage of the total amount of capital in Atlanta and nationwide.
The program's legacy
Founded in 2012 by Bernie Dixon, the Launchpad2X program is a founder-to-CEO, two-year accelerator for women entrepreneurs. It provided lessons on business practices, membership events and both in-person and remote monthly workshops.
The nonprofit has a network of 257 alumnae, said Brown. Startups out of the program have had a $1.4 billion economic impact in Atlanta and employ over 260 people, according to the nonprofit’s 2021 State of Women’s Entrepreneurship Report.
Tamara Lucas, founder of personal assistant app My Panda, said the Launchpad2X program gave her a needed mindset shift to prepare her for the world of venture capital. After going through the program, My Panda was accepted into this year's Techstars Atlanta accelerator.
“I feel like I belong in the room much more than I did before,” Lucas told Atlanta Inno in February. “I’m more decisive. Both of those things indirectly strengthen the company.”
Plans for a shut down come after a year of expansion for the nonprofit. It started a series titled “First Fridays” which helped women practice their company pitches with feedback from investors. It also had plans to expand in-person courses to other cities, Brown told Atlanta Inno in February.
“The legacy of Launchpad2x will continue through its alumni, partners, and systemic changes that it inspired in the ecosystem.” said Startup Atlanta Board President Jennifer Singh. "Atlanta will continue to be a supportive community and destination for female-identifying entrepreneurs to build their businesses."
Worsening gender diversity
Despite more female-led businesses emerging, their share of venture capital has gradually decreased, according to Crunchbase research. Women received 2.2% of venture capital dollars last year compared with 2.5% in 2016 and 2.3% in 2020.
The close comes as gender pay disparities have increased in Atlanta. A recent study found that Atlanta women in tech earn 83.7% of what men earn while little over 25% of its tech workforce are women. In 2021, Atlanta women in tech made about 88% of what men earned and about 27.1% of its tech workforce included women.
“My fear is if we aren't creating successful platforms that really put rigor around women founders, we’ll continue to see that demise,” said Brown. “Especially with a pause in investments and valuations, it can create another gap.”
Other resources for female founders in Atlanta include the ACE Women's Business Center, financial platform EnrichHER and the Greater Women’s Business Council.
