14.2 C
London
Monday, October 18, 2021

Update COVID-19 04 November 2020

04 November 2020 — Twelve (12) new COVID-19 cases were identified out of 980 samples tested today. This brings the cumulative number of confirmed cases to five thousand, one hundred, and seventy-four (5174). To date, four thousand, nine hundred, and thirty (4930) patients have recovered, with on one in the past 24 hours. The number…
More

    Latest Posts

    Washington trooper signs out for last time, tells Inslee he can ‘kiss my a—‘

    A Washington State Patrol officer who refused to comply with the state’s vaccine mandate signed out for the last time on Friday and issued a strongly worded message to Gov. Jay Inslee, according to a report.Robert LaMay, the officer, filmed his final sendoff in a video obtained by Jason Rantz, a host on KTTH 770/94.5FM…

    Kourtney Kardashian and Travis Barker engaged

    Travis Barker and Kourtney Kardashian are taking their love to the next level.The two are engaged after the Blink-182 drummer proposed in Montecito, Calif., over the weekend, Page Six can confirm.Barker, 45, proposed to Kardashian, 42, at a beachside hotel and went all out for the occasion.KIM KARDASHIAN SAVES ‘SNL’ RATINGS AFTER WEAK PREMIEREAccording to…

    Seahawks’ Jamal Adams declares himself ‘best in the nation,’ NFL fans shake their heads

    Seattle Seahawks safety Jamal Adams had quite the introduction Sunday night.When Adams presented himself during Sunday Night Football’s telecast, he referred to himself as "the best in the nation." The Seahawks were in Pittsburgh in a showdown against the Steelers.CLICK HERE FOR MORE SPORTS COVERAGE ON FOXNEWS.COM Seattle Seahawks strong safety Jamal Adams (33) reacts…

    Texas Rep. Michael McCaul: Biden rescinded Remain in Mexico policy ‘because it had Trump’s name on it’

    Rep. Michael McCaul, R-Texas, had a warning for Americans on the border crisis on the latest "Sunday Night in America."Host Trey Gowdy invited McCaul to discuss the federal court ruling to "enforce and implement" the Migrant Protection Protocols otherwise known as the "Remain in Mexico" policy. This policy required sending migrants back to Mexico as…

    1 change that can fix the VC funding crisis for women founders

    Claire Diaz-Ortiz
    Contributor

    Claire Diaz-Ortiz is a venture capitalist and author of nine books that have been translated into 11 languages. Her next book is on women founders and funders. An early employee at Twitter, Wired once called her “The Woman Who Got the Pope on Twitter.”

    More posts by this contributor

    The venture capital industry as we know it is broken. At least for women, that is.

    In terms of funding to women founders, 2020 was among the worst years on record. On a global level, only 9% of all funds deployed to technology startups went to founding teams that included at least one woman. Solo woman founders and all-women teams raised just 2% of all VC dollars, Crunchbase data showed.

    Shockingly, this number is actually less than it was when we first started counting a decade ago, well before many high-profile diversity initiatives launched with the goal of fixing this very problem.

    This funding gap isn’t just a moral crisis — it’s an economic one. The lack of investment into women-founded startups is a missed opportunity worth trillions of dollars. That’s because of overwhelming evidence that startups founded by women outperform startups founded by men: They generate more revenue, earn higher profits and exit faster at higher valuations. And they do all this while raising way less money.

    What we’re doing isn’t working. Through research for my next book on women founders and funders, I kept asking myself the same question: When it comes to fixing the funding gap for women founders, what’s the one thing we can do that will make everything else easier or unnecessary?

    I now believe that our best bet for long-term change is to focus our efforts on increasing the number of women investing partners who can write large seed checks. Here’s why.

    Women investors are up to 3x more likely to fund women founders

    Recently, one of the top VCs in the world told me how challenging it is to diversify his senior team. He expressed it as an accepted fact and a widespread belief. This is a common trope in Silicon Valley: Everyone wants gender diversity, but it’s so hard to find all the senior women!

    In the venture capital industry, who you hire at the senior level is who you hang out with. And who you hire at the senior level determines who your fund will back.

    Since studies now show that women investors are up to three times more likely to invest in women founders, it is clear that the fastest way to fund more women is to hire more women investing partners with check-writing ability. The effect to venture firms? Returns.

    “When U.S. VC firms increased the proportion of female partners, they benefited with 9.7% more profitable exits and a 1.5% spike in overall fund returns annually,” explained Lisa Stone of WestRiver Group.

    Data from All Raise and PitchBook reinforce the “correlation between hiring female decision-makers at the investment level and outperformance at the fund level,” adding that “69.2% of U.S. VCs that scored a top-quartile fund between 2009 and 2018 had women in decision-making roles.”

    It shouldn’t be surprising that women investors are more likely to invest in women founders. That’s because humans have a propensity toward homophily the tendency for like to attract like and for similarity to breed connection.

    Homophily is why a vegan VC is more likely to invest in a vegan food tech, a gamer is more likely to hang out with gaming founders, or a parent is more likely to invest in a parent marketplace. People gravitate toward what they know.

    Deena Shakir, who happens to be a woman and a mother, recently led Lux Capital’s investment into women’s health unicorn Maven. Shakir had multiple high-risk pregnancies with multiple complications, emergency C-sections, NICU stays and breastfeeding challenges.

    “It is no coincidence that I am joined on Maven’s board of directors by four other mothers … and a brand-new father … whose personal journeys have also informed their professional conviction,” Shakir wrote in a Medium post.

    Why seed checks have the greatest impact on the ecosystem

    I believe that to fix the funding gap for women founders and jump-start the virtuous cycle of venture capital investing into women, we should focus on getting more seed checks into the hands of women founders. That’s because seed investing is a leading indicator of whether we are headed in the right direction in terms of closing the funding gap for women, according to Jenny Lefcourt, a partner at Freestyle and co-founder of All Raise, the leading nonprofit focused on diversifying the VC industry.

    This doesn’t discount the importance of investments made into women founders at later stages. When a women founder lands Series D capital, it boosts this year’s numbers into women founders and likely brings that particular founder closer to a liquidity event that will lead her (and her executives) to invest in more women.

    That said, the greatest impact on the future ecosystem will come from widening the top of the funnel and giving more women at the seed stage the shot to one day reach a momentous Series D funding like Maven. After all, who we fund now becomes who we fund later.

    Why large seed checks matter most

    Finally, the size of the check is also important when thinking about how to have the biggest impact on the ecosystem.

    I know first-hand that microchecks are critical to building an inclusive ecosystem. When women invest at the seed level — in any amount — they jumpstart a virtuous cycle of women funding women. That’s why when I stepped in to lend a hand at my portfolio company when the solo woman founder took a parental leave, one of my key projects was to develop Jefa House, a way for Jefa’s own executives to easily invest in other women-founded startups.

    That said, large party rounds made up entirely of small angel checks are few and far between. Similar challenges face small checks from emerging fund managers. Although the sheer number of emerging managers has increased 9x in seven years, the reality is that most emerging managers simply don’t have much money.

    Are women venture capitalists who run their own microfunds more likely to invest in amazing women founders than Tier 1 funds with few or no women investing partners? Yes. Will it take them a long time to compete with those Tier 1 funds in terms of check size? Yes.

    This is why it matters so much when leading funds hire or promote women to the partner level. Not only does it give women founders a better shot at funding from high-signal shops, but the moves that top funds make are key signals to others in the ecosystem: In venture capital, women investors don’t have to sit at the kids’ table.

    Why we must hire women investing partners

    We all know that great returns in early-stage venture capital come from making big bets on great ideas that others aren’t betting on. That is why VC investing is contrarian by definition. Thanks to our increasingly globalized world and clear data showing the importance of diverse teams to make good decisions to get those returns, no one in 2021 truly believes that single white dudes in Palo Alto have a monopoly on billion-dollar ideas.

    However, due to the nature of homophily, venture capital remains a highly homogenous industry, and the social and economic interactions and decisions of human beings remain deeply swayed by these principles. No matter how much work we do, birds of a feather really do flock — and fund — together.

    This all leads to one place: The clearest path to funding different kinds of founders with different kinds of ideas is to put different kinds of investors on the investing side of the table. To get more funding to women founders, we need more women who can write checks. That’s why prioritizing the hiring of women investing partners who can write large seed checks is key to fixing the funding crisis for women founders and increasing VC returns worldwide.

    Latest Posts

    Washington trooper signs out for last time, tells Inslee he can ‘kiss my a—‘

    A Washington State Patrol officer who refused to comply with the state’s vaccine mandate signed out for the last time on Friday and issued a strongly worded message to Gov. Jay Inslee, according to a report.Robert LaMay, the officer, filmed his final sendoff in a video obtained by Jason Rantz, a host on KTTH 770/94.5FM…

    Kourtney Kardashian and Travis Barker engaged

    Travis Barker and Kourtney Kardashian are taking their love to the next level.The two are engaged after the Blink-182 drummer proposed in Montecito, Calif., over the weekend, Page Six can confirm.Barker, 45, proposed to Kardashian, 42, at a beachside hotel and went all out for the occasion.KIM KARDASHIAN SAVES ‘SNL’ RATINGS AFTER WEAK PREMIEREAccording to…

    Seahawks’ Jamal Adams declares himself ‘best in the nation,’ NFL fans shake their heads

    Seattle Seahawks safety Jamal Adams had quite the introduction Sunday night.When Adams presented himself during Sunday Night Football’s telecast, he referred to himself as "the best in the nation." The Seahawks were in Pittsburgh in a showdown against the Steelers.CLICK HERE FOR MORE SPORTS COVERAGE ON FOXNEWS.COM Seattle Seahawks strong safety Jamal Adams (33) reacts…

    Texas Rep. Michael McCaul: Biden rescinded Remain in Mexico policy ‘because it had Trump’s name on it’

    Rep. Michael McCaul, R-Texas, had a warning for Americans on the border crisis on the latest "Sunday Night in America."Host Trey Gowdy invited McCaul to discuss the federal court ruling to "enforce and implement" the Migrant Protection Protocols otherwise known as the "Remain in Mexico" policy. This policy required sending migrants back to Mexico as…

    Don't Miss

    Braves’ Austin Riley stuns Dodgers with walk-off single in NLCS Game 1

    Austin Riley played the hero in Game 1 of the National League Championship Series for the Atlanta Braves on Saturday against the Los Angeles Dodgers.With the game tied in the bottom of the ninth and Ozzie Albies on second base, Riley singled to left field to score a racing Albies. The RBI gave Atlanta a…

    Alex Murdaugh booked into South Carolina lockup after Florida arrest: report

    Alex Murdaugh was booked into a South Carolina detention facility on Saturday following his Thursday arrest in Florida.The disgraced South Carolina attorney was taken into custody following his release from a drug rehabilitation facility in Orlando. He arrived Saturday at the Alvin S. Glenn Detention Center in Richland, South Carolina, near Columbia, after waiving an…

    Dan Bongino: Biden is the Grinch who stole Christmas

    Dan Bongino revealed how the Biden administration's policies are ruining Christmas Saturday on ‘Unfiltered.’DAN BONGINO: If you’ve been a regular viewer of this show, you know I’ve been warning you about how everything the Biden administration touches, it burns to the ground. Everything. But is it possible, could they possibly even screw up Christmas? ……

    Strengthening yellow fever laboratory testing capacities in South Sudan

    Juba, 14 October 2021 – a team of technical officers in the National Public Health Laboratory have been trained over the last week, aiming at building their capacity to contribute to controlling yellow fever outbreaks. South Sudan lies in the yellow fever belt and has reported 187 cases including 27 deaths reported in three separate…

    Asteroid impact could be stopped with nuclear missiles, study suggests

    Asteroid impacts are one of the most dangerous possible natural disasters, as humanity currently lacks a reliable means of defense against them. One possible solution, using nuclear weapons or similarly destructive means, is something commonly seen in science fiction movies, but is frowned upon by many scientists due to the possibility of fragments of the…

    Stay in touch

    To be updated with all the latest news, offers and special announcements.

    × Share your content