The venture capital industry has a well-earned reputation for being mostly male, mostly white and mostly interested in funding startups founded by people who look like them.
That means it's key for women founders to understand how to break through, when to fit in and how to hold VCs accountable, a panel of women founders and investors said Monday. And every situation is a little different.
Everyone has biases to overcome, said Jean Anne Booth, CEO of UnaliWear, an Austin startup making smart watches for seniors. For example, many women-led startups are pitching products that men don't understand, so it becomes extra important for women founders to take preventative questions from VCs and turn them into promotional answers, she said.
" ... it’s totally a process, and we have a tendency to give up too early.”
Tarica Phung, founder of KINN Home, a lifestyle commerce site with curated home dining wares, agreed that VCs tend to invest in what they know, which is often male-oriented.
“There are definitely many, many bad apples out there. Don’t get me wrong," she said during a panel discussion during the Women in Tech Summit at Capital Factory. "But I think to focus on the solution is the better approach … the onus is on you.”
Phung said that she was once asked by an investor what she wants to be when she grows up. She was tempted to say, "Since I'm 40, I'm already grown up." But, she said, it's important to pick your battles. So, instead of making it a teaching moment for the VC, she said she just focused on her company's growth opportunities.
Christy Cardenas, managing partner at Austin-based Ecliptic Capital, said women founders should focus on data and dollars in their pitches to VCs instead of their back stories and why they're passionate about their idea.
“If the data and dollars don’t make sense, you’re just a good idea in the wind … and there are so many good ideas out there these days," she said.
But, she added, you should follow all that talk of data and dollars with your heart -- why your passionate about your startup. Show us how big it can be, and what our odds are at cutting through, she said.
"And don’t forget the bravado part, even if you have to kinda fake it," she said.
Booth said that many venture capital firms are beholden to agreements with their investors, which might prevent them from investing in certain types of startups. That means you have to face a lot of rejection, even when it has nothing to do with your pitch or business potential.
“For the average ‘yes,’ it’s 17 touch points," she said. "In raising $11.4 million, primarily from angels, for this company, only once did somebody give me a check when I pitched… it’s totally a process, and we have a tendency to give up too early.”
“Don’t give up," she said. "Everybody gives up too easily. Don’t give up.”
