We're a little late with this week's funding wrap, but that allowed us to capture the big news on Monday, when True Wealth Ventures said it had closed a second fund to back women-led startups. Get the details on that fund, plus more recent venture capital deals, below.
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True Wealth Ventures launched in Austin with what shouldn't be an out-of-the-ordinary mission: to invest in promising women-led startups.
But, in fact, it's pretty rare in the venture capital world to focus on female founders. Only 2.3% of all the VC dollars flowing to startups in 2021 were to companies founded solely by women. And data released by PitchBook this spring showed less than 15% went to companies with at least one woman co-founder.
True Wealth, founded in 2015 by Sara Brand and Kerry Rupp, has made backing women-led startups its sole focus, especially those addressing health issues, and it now has about $60 million in assets under management with big plans ahead. The firm just announced it has raised a $35 million second fund, which follows up on its $19 million first fund that closed in 2018.
With the new fund, the firm plans to focus on software, hardware and consumer packaged goods startups with initial checks from $500,000 to $1 million.
And, as focused as it is on women-led businesses, True Wealth's funds also have been fueled by mostly women limited partners. The firm has 80% women LPs across its funds and the actual dollars that come from women were about 75%. The firm noted that a majority of the women LPs investing in its first fund had previously never been invited to invest in a venture fund.
“While our primary mission continues to be getting early-stage capital to female founders whose core value proposition is improving environmental or human health, our secondary mission has been to facilitate more women investing into this asset class as LPs,” Brand stated. “We not only believe this is the fastest way to change the gender inequality in the VC ecosystem, we also believe it is critical for our country’s innovation economy with the wealth shifting to women.”
True Wealth plans to make 15 investments with its new fund, and it has already made three investments from its new fund, including one in an Austin company: Flourish, which is focused on helping women build sustainable and healthy life habits. It also backed San Diego-based trucking safety tech startup Aeromutable and California-based De Oro Devices, which helps people with mobility disorders.
“Investing in women-led companies personally resonates with women who know their peers have potential and should be backed much more than a mere 2.3%,” Rupp stated. “There’s a feeling of, ‘If not us, then who?’ Women are twice as likely to invest in companies that will have a positive social impact, and 10 times as likely to invest in companies with diverse teams.”
More recent fundings
• MicroTransponder Inc., a medical device developer, said June 20 it raised a $53 million series E round. The investment was led by US Venture Partners. GPG Ventures, Exceller Hunt Ventures, Osage University Partners, Action Potential Venture Capital and The Vertical Group also contributed to the round. Founded in 2007, MicroTransponder had previously raised about $42 million in venture and debt funding, according to Crunchbase. Its first FDA-approved product is Vivistim Paired VNS, which is a neuroplasticity-based medical device platform. The company plans to use the new funding to commercialize the platform to help stroke survivors regain hand and arm mobility. Along with the funding, MicroTransponder said it has named Richard Foust as its CEO and director.
• Apptronik Inc., a company developing robots announced June 23 it had raised a $14.6 million seed round. The money came from Capital Factory, Grit Ventures and Perot Jain LP. CEO and co-founder Jeff Cardenas said the fresh funding will be used to expand the applications of its most versatile humanoid bots yet. Apptronik also plans to hire — it has about 50 employees, and expects to hire about 50 more by 2023.
• Kickfin, an Austin startup that helps divvy up tips at restaurants and other establishments, said June 23 it raised $6 million in series A funding led by Austin venture firm Silverton Partners. New York-based Acronym Venture Capital also contributed to the round. Combined with its seed round, led by Loomis U.S., Kickfin has now raised $11 million total. It was founded in 2007 by Justin Roberts and Brian Hassan.
Get ABJ's latest list of local venture capital firms here, and see the list of angel investors here. A list of local startup incubators can be found here.
Editor's note: This story has been updated to clarify the percentage of women LPs who have invested in True Wealth Ventures' funds.
