Investing in Women-Led Startups | Funding for Female Founders

A New Angel Fund Focused on Women Investors and Entrepreneurs

A new angel investment fund, designated The Fund XX, is currently being established. It aims to unite a network of women investors and entrepreneurs to facilitate investments in companies at the pre-seed and seed stages.

Origins and Investment History

Jenny Fielding, managing director at Techstars and a founding member of The Fund, explained that the organization originated in 2018. A collective of individuals combined their networks, capital, and resources to pioneer a community-focused approach to angel investing. To date, The Fund has invested in a total of 140 companies.

Focus on Female Founders

The Fund XX represents the organization’s inaugural investment vehicle specifically targeting companies founded by women. While the fund is still in the process of closing, Jenny Fielding indicated that prior funds have successfully raised between $2 million and $4 million.

Investment Committee Expertise

The investment committee for The Fund XX comprises experienced professionals. These include Ragini Holloway, senior vice president of people at Affirm; Allison Stoloff, an investor at Hanaco Ventures and a former operator at Knotel, Oscar, and Facebook; Gabriela Isturiz, founder of eBillingHub and Bellefield Systems; and Sylvia Kuyel, vice president of revenue at JumpCloud.

Investment Criteria

Allison Stoloff emphasized that the fund prioritizes investments in companies not only led by women, but also those where women hold the position of CEO. Furthermore, companies must demonstrate venture scalability and be technology-driven.

“We are confident that women are capable of building businesses valued at $1 billion, and we possess a distinct advantage in identifying them,” Stoloff stated. “Our network of Limited Partners (LPs) provides us with early access to promising deals and invaluable insights into exceptional founders.”

Addressing Gender Disparities in Angel Investing

Despite the increasing accessibility of angel investing, Sylvia Kuyel noted a disparity in representation. Women, although comprising 22% of all angel investors, are underrepresented on lists of the most active syndicates on platforms like AngelList. This suggests a tendency for women to make fewer investments, and those investments are often for smaller amounts.

Building a Supportive Ecosystem

The Fund XX operates across all sectors and has yet to make its initial investment. Its primary objective is to cultivate a community that overcomes existing barriers and expands opportunities for both investors and startups, while also encouraging greater female participation in the investment landscape.

Empowering New Investors

“At least 50% of our LPs are making their first-ever investment,” Allison Stoloff revealed. “Women are twice as likely to invest in companies led by other women, which will have significant and lasting positive effects, ultimately attracting more women into the investment ecosystem.”