Finding the Bright Spots

The Easiest Way to a Venture Portfolio

Shereen Shermak

Launch Angels CEO &

Active Angel

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Tweet out your Bright Spot

#fundwomen @launch_angels

@shrubed Shereen Shermak

@changds David Chang

@karaemiller Kara Miller

@ellen_rubin Ellen Rubin

@julespieri Jules Pieri

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A ‘not so bright’ spot.

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4.2 to 7% of VC funding goes to women-led businesses

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Female En-gineers

Male En-gineers

Female Engineers

Male En-gineers

Barriers fall when old policies change

Carnegie Mellon increased the number of female engineering students from 7% to 42%

…in less than 5 years

5 years

Bright Spot

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PayPal Start Tank ensured a gender diverse selection committee

Over 1/3 of the companies in previous Start Tank cycles had women founders.

In the newest batch, 6 out of the 14 startups have women founders.

Bright Spot

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Another ‘not so bright’ spot:Using the same exact pitch…

Men are 40% more likely to receive funding than women.

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‘Blind auditions’ increase diversity

From the 1970s to 1990s, women increased from 10% to 35%

Bright Spot

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*UK

Crowdfunding enables nearer ‘gender blind’ evaluations

Bright Spot

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People naturally favor people like themselves

• Dominant groups overall tend to form more relationships

• These relationships are how VCs find entrepreneurs and allocate capital

• NYU study in 2011 found VCs are more likely to select startups with coethnic executives for investment, particularly when the probability of the startups’ success appears low (and are of lower observable quality).

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Diverse investors leads to diverse investments

In 2012, 16% of entrepreneurs seeking angel capital were women, 25% received investments.

Bright Spot

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2007 2008 2009 2010 2011 20120%

5%

10%

15%

20%

25%

12%

17%

11%13%

12%

22%

Women Angels

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Female venture capitalists are forming their own fundsRivet VenturesWomen’s Venture Capital FundLaunch Angels

Increasing VC capital controlled by women improves chances for women-led ventures

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Launch Angels Women-Led Fund

• Raising capital from Angels now• Fund closes in March

Enabling Action

• First investment in AprilMake

Immediate Impact

• Women-led• Women-backed• Women-friendly

Investment Goals

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The easiest way to a venture portfolio.

www.launch-angels.com | shereens@launch-angels.com

@launch_angels

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Sources1. Angel Resource Institute, Silicon Valley Bank & CB. Oct. 16, 2013. Insights Q2 2013 Halo Report. Retrieved from http://www.cbinsights.com/blog/trends/angel-investment-

data-q2-2013 2. Koetsier, J. Feb. 19, 2013. Rise of the Angel Investor Infographic. Retrieved from http://venturebeat.com/2013/02/19/the-rise-of-the-angel-investor-infographic/3. Sekhon, S. May 1, 2013. Crowdfunding Statistics and Trends Infographic. Retrieved from http://blog.gogetfunding.com/crowdfunding-statistics-and-trends-infographic/4. Crowdfunding Intermediary Regulatory Advocates. Apr. 8, 2013. Studies Show 81% Jump in Crowdfunding and a $3.98 Billion Crowdfund Investing Market. Retrieved from

http://www.cfira.org/?p=21845. Sohl, J. Apr. 25, 2013. The Angel Investor Market in 2012: A Moderating Recovery Continues. Retrieved from http://blog.gogetfunding.com/crowdfunding-statistics-and-trends-

infographic/ 6. Ibid7. Ibid8. Kerr, W. Apr. 15, 2010. The Consequences of Entrepreneurial Finance: A Regression Discontinuity Analysis. Retrieved from http://hbswk.hbs.edu/item/6347.html9. Farrell, M. Apr. 26, 2013. Women boosting funding of start-ups. Retrieved from http://www.bostonglobe.com/business/2013/04/25/more-women-writing-checks-fund-start-

ups/z8pgHQdNiEL0dhdzDPCykM/story.html10. Information for Development Program/The World Bank. Oct. 24, 2013. Crowdfunding’s Potential for the Developing World. Retrieved from

http://www.infodev.org/crowdfunding11. Casserly, M. Apr. 25, 2013. Tipping the Scales: Women Angel Investing Reaches All-Time High. Retrieved from

http://www.forbes.com/sites/meghancasserly/2013/04/25/tipping-the-scales-women-angel-investing-reaches-all-time-high/12. Ewing Marion Kauffman Foundation. Nov. 2009. Where Will the Jobs Come From? Retrieved from http://www.kauffman.org/~/media/kauffman_org/archive/researchreport/

2011/4/where_will_the_jobs_come_from.pdf13. Angel Capital Association. July 15, 2013. New SEC Rules Could Kill Angel Investing, Hurt Startups, and Hinder Job Growth. Retrieved from http://online.wsj.com/article/PR-CO-

20130716-908735.html14. Center for Venture Research. Apr. 25, 2013. The Angel Investor Market in 2012. Retrieved from https://paulcollege.unh.edu/research/center-venture-research/cvr-analysis-

reports15. Stengel, G. May 29, 2013. 5 Ways to Get More Entrepreneurs on the World’s Most Powerful Women’s List. Retrieved from

http://www.forbes.com/sites/geristengel/2013/05/29/5-ways-to-get-more-entrepreneurs-on-the-worlds-most-powerful-women-list/16. Baum, S. Apr. 25, 2013. Proportion of Women Angel Investors Rose in 2012. Retrieved from http://medcitynews.com/2013/04/report-proportion-of-women-angel-investors-

rose-in-2012/17. Casserly, M. Apr. 25, 2013. Tipping the Scales: Women Angel Investing Reaches All-Time High. Retrieved from

http://www.forbes.com/sites/meghancasserly/2013/04/25/tipping-the-scales-women-angel-investing-reaches-all-time-high/18. Stengel, G. Jan. 30, 2013. Why Crowdfunding is a Game-Change for Women Entrepreneurs. Retrieved from http://www.forbes.com/sites/geristengel/2013/01/30/why-

crowdfunding-is-a-game-change-for-women-entrepreneurs/19. Ibid20. Alois, J. Mar. 7, 2013. Women Are More Successful at Crowdfunding Startups. Retrieved from http://www.crowdfundinsider.com/2013/03/11376-women-are-more-successful-

at-crowdfunding-startups/21. Information for Development Program/The World Bank. Oct. 24, 2013. Crowdfunding’s Potential for the Developing World. Retrieved from

http://www.infodev.org/crowdfunding22. Crowdsourcing.org. (n.d.) Retrieved from http://www.statista.com/statistics/251577/growth-in-the-number-of-crowdfunding-platforms-by-category/