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Investing in Women-Led Startups
Deborah Weinswig
Managing Director
US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016
June 8, 2016
2
AgendaABOUT US
OVERVIEW
DRIVERS FOR WOMEN-LED STARTUPS
CHALLENGES FOR WOMEN-LED STARTUPS
CASE STUDY: CHINA
3
About Fung Group
TRADING LOGISTIC
S
DISTRIBUTIO
N
RETAILING
Li & Fung LimitedListed on SEHK
Global Brands GroupListed on SEHK
Fung Retailing LimitedPrivately Held Entity
Convenience Retail
Asia Limited
Listed on SEHK
Trinity Limited
Listed on SEHK
Branded Lifestyle Holdings Limited
LiFung Kids (Holdings) Limited
Toyrs “R” Us (Asia)
Suhyang Networks
UCCAL Fashion Group
Privately Held Entities
Fung Holdings (1937) Ltd.
A privately held entity and major shareholder of the Fung Group
4
About Fung Global
• Fung Global Retail & Technology advises retailers, real estate developers and tech companies on projects situated
at the intersection of retail, tech and/or fashion.
• Our team offers a robust knowledge bank and significant experience in the retail, fashion and tech fields. We are
involved in many areas of the business and believe this allows us to offer a unique perspective by focusing on the
future and where the sector is heading.
A Unique Combination of Retail, Fashion & Tech
RETAIL FASHIO
N
TECH
5
AgendaABOUT US
OVERVIEW
DRIVERS FOR WOMEN-LED STARTUPS
CHALLENGES FOR WOMEN-LED STARTUPS
CASE STUDY: CHINA
6
Overview
7
Global Overview & Regional Comparison
• Higher women early stage
entrepreneurship rates in developing
economies
• Lower early stage entrepreneurship
rates in developed countries
• Asia has a high concentration of female
entrepreneurship
• In North America, female TEA rate is
only 11%
Region Female
TEA Rate
Male
TEA Rate
F/M
Ratio
Africa 25 26 0.96
Asia & Oceania 14 15 0.93
Latin America& Caribbean 15 19 0.79
Europe 6 13 0.46
North America 11 16 0.69
Middle East 8 14 0.57
Europe 5 9 0.55
Total Early-stage Entrepreneurship Activity (TEA) Rate by Region and
Gender (% of Total Adult Population)
Total Early-stage Entrepreneurship Activity (TEA) rate, which
measures the percentage of the adult population (18 to 64 years) in
the process of starting a business and those who have recently
started one. Source: Babson College
8
Our Accelerator Partnerships
ENTREPRENEURSROUNDTABLE
ACCELERATOR
9
Our Accelerator Partnerships
Percentage of Women-Led Startups
ENTREPRENEURSROUNDTABLE
ACCELERATOR30% 100%
100% 15%
30% 30%
40% 100%
10
NAME UR PRICE
SELF-CHECKOUT
EVANGELIZE THRIVE
EXPERIENTIAL RETAIL: MAKE THE STORE AN AWESOME PLACE
CUSTOMER ENGAGEMENT: HOW DO YOU CONVERT THE CONSUMER
ALL CHANNEL: The CONSUMER CAN SHOP WHEREVER +
WHENEVER
REACTION COMMERCE
NEW RETAIL MODELS:HOW WILL THE CONSUMER SHOP IN THE FUTURE
Four-Quadrant Disruptors Framework with Women-led Startups
11
Women & Business: General Trend
• 10 M+ US business owned by women
entrepreneurs: the highest rate of
women founders than anywhere else
• 19.2% board seat in S&P 500
companies versus 11.7% in 2000
(Catalyst.org)
2014 S&P 500 Board Seats Held By Women
Source: Catalyst.org
x
19.2%Women
88.8%Men
12
Women In The Tech Sector
Tech Leadership Roles Held by Women
13
Women In The Tech Sector: Global
Source: Next Shark.com
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage of Global Employees by Gender
%Male
%Female
14
Women-Led Startups: General Trend
15%Of the companies
receiving venture capital
had a woman on the
executive team
5.6%Of firms with women
decision-makers raised
more than $100M since
2009
3%Of total venture capital
goes to companies with
women CEOs ($1.5B out
of $50.8B between 2011-
13)
9%Of total seed stage
investments are given to
companies with women
entrepreneurs
13%Of total early stage
investments are given to
companies with women
entrepreneurs
86%Of venture-funded
businesses have
zero women in
management
positions
Source: Womenwhotech.com
15
Women-Led Startup VC Funding
117 209 342 486 523 555
1100
15002000 2200
2500 2450
9.5%11.7%
14.3%
17.4% 16.8%17.9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
500
1000
1500
2000
2500
3000
3500
2009 2010 2011 2012 2013 2014
U.S. Venture Funded Companies by Founder Gender
Source:Crunchbase
# of Funded
Companies [by First
Funding Round
Recorded]
% of Total
Companies w/
Female Founder
16
Drivers1. INSTITUTIONAL AND ORGANIZATIONAL
2. THOUGHT LEADERSHIP
3. GLOBAL WOMEN ENTREPRENEURSHIP EVENTS
4. INCREASING VC FUNDING
5. IMPROVED ANGEL INVESTMENT
6. EMERGING CROWDFUNDING FOR WOMEN
7. BETTER ROE FROM WOMEN-LED BUSINESSES
17
1: Institutional and Organizational
Funding Institutions and Organizations
18
2: Thought Leadership
19
3: Global Women Entrepreneurship Events
Alibaba
“Global Conference on Women
and Entrepreneurship”
Women Who Tech
“Women Startup Challenge”
Fung Global
“Breakfast with Disruptors:
Women-Led Startups with a Focus
on Beauty and Fashion”
20
4: Increasing VC Funding
• In 2013, 18% of venture capital deals
went to women-led companies, while
only 5% of women-led companies
received funding in 1999 by US VC
funds
• Female-founded companies received
the largest investments
• Retail (43%)
• Media (17%)
• Software(6%)
Source: Pitchbook
8%
10% 10% 10% 11%
12%
16% 16% 17% 18%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Percentage of Global VC Deals Investing in Companies With
Female Founder
21
5: Improved Angel Investment
• In 2014, there were 82,633 women angel
investors in the US an increase from 57,967
in 2013
• This figure has grown by over 7x since 2004,
when there were 11,250 women angel
investors
• In 2014, women angels represented 26.1%
of the angel market, a significant increase
from 19.4% in 2013
• Angel investment is a long-term, relational
process which attracts more female investors
• Rise in the number of women-only angel
networks
Source: AngelList
4%
8%
11%
14%
22%
Developer Tools
Entreprise Software
Fashion
Organic Food
Women Focused
Percentage of Women Investors by Market as of 2014
22
6: Emerging Crowdfunding For Women
Equity-Based Crowdfunding
• The overall success rate was 20% while
women-led companies had a 23% success
rate
• On average, women-led companies raised
$422,370 versus $405,295 overall
Reward-Based Crowdfunding
• Women had a 70% success rate versus
61% for men in reaching their goals on
Kickstarter
• Women-owned technology companies
have a 65% success rate compared to a
30% success rate for male-owned
technology companies
23
6: Emerging Crowdfunding For Women
Plum Alley is crowdfunding for
women by women, founded by
Deborah Jackson.
Indiegogo, with Danae
Ringelmann as one of its founding
members, reported that 42% of its
crowdfunding campaigns are run
by women.
Crowdfunder has Rita
Ravindra as its Chief
Operations Officer.
24
7: Better ROE From Women-Led Businesses
• Women-led private technology
companies are more capital-efficient,
achieving 35% higher return on
investment
• Women-led venture-backed companies
are bringing in 12% higher revenue
than male-owned tech companies
(Kauffman Foundation)
• 80 women CEOs produced equity
returns 226% better than the S&P 500
from 2002 to 2014 (Quantopian)
25
Challenges1. UNDERREPRESENTATION IN STEM JOBS
2. PERCEPTION OF WOMEN’S LACK OF ENTREPRENEURIAL SPIRIT
3. PERSONAL EXAMPLES
26
1: Underrepresentation In STEM Jobs
• Women’s share of STEM degrees remained
largely unchanged between 2004 and 2014
• 15% of women finding a job in a STEM
profession versus 31% for men
• The average male make $91,000 compared to
$75,000 for a woman
• Women hold 57% of jobs in the workforce vs
25% in computing technology
49%43% 40%
51%57% 60%
50%43% 40%
50%57% 60%
Women’s Share of STEM Degrees by Degree Level
Female
Male
2004 | 2014 2004 | 20142004 | 2014
Bachelor’s Degree | Master’s Degree | Doctoral Degree
Source: Golden Seeds, WhoIsHostingThis
27
2: Perception Of Women’s Lack Of Entrepreneurial Spirit
• Women reported lower perceived opportunities, higher fear of failure, lower
perceived capabilities, and knowing fewer entrepreneurs than men
0%
5%
10%
15%
20%
25%
18-24 25-34 35-44 45-54 55-64 65+
Entrepreneurial Rates for Males and Females
Male Female
0%
5%
10%
15%
20%
25%
30%
18-24 25-34 35-44 45-54 55-64 65+
Entrepreneurial Intentions for Males and Females
Male Female
Source: GoldenSeeds
28
3: Personal Examples
Kelsey ConophyFounder & CEO
WorkZeit
Fang ChengCEO
Linc
Wendy ChenCEO
Omnistream Co
Sue WelchCEO
Bamboo Rose
29
Case Study: China
30
Case Study: China
0% 10% 20% 30% 40% 50% 60% 70%
Saudi Arabia
India
Italy
South Africa
Agentina
France
Indonesia
Germany
US
UK
Russia
Brazil
Japan
Australia
Canada
China
Source: WorldBank
Labor Force Participation Rate by Country in 2014
31
Case Study: China
• Venture capital is the top funding
source for Chinese startups
9%13% 16%
11%
16%4%
42%
40%
38%
38%31%
42%
U.S. U.K. China
PrivateEquity
Angel/Micro VC
VentureCapital2
OtherSources
% Breakdown by Fund Sources
Source: Silicon Valley Bank
32
Case Study: China
• Chinese startups have more women in
leadership
Source: Silicon Valley Bank
% Companies Having at Least One Woman CEO
US
UK
CHINA
x
x
x
54%
53%
79%
33
Case Study: China
Key Stats of Female Entrepreneurs in
China
• Average Age: 47
• Education-Level: 36.8% have bachelor’s
degrees and 12.7% have graduate
degrees
• Company Size: 66.8% small; 26% medium
enterprises; 7.2% large
Finance2%
IT2%
Professional Services
4%
Entertainment 6%
Education8%
Medical Services
11%
Lodging/Tourism/Restaurant
15%
Fashion25%
Toys and Baby Care27%
Women-led Startups in China by Sector
Source: AliResearch
34
Case Study: China
Popular Women-Led Startups
Liu QingPresident of Didi Chuxing,
a mobile platform
taxi-calling app
Company Size: $20 Billion
Zhao KokyingCo-Founder of Uboche,
a car-parking app
Company Size: $1.42 Million
Chen FengFounder of Meililai,
a beauty-O2O app
Company Size: $1.53 Million
35
Case Study: China
• TechBase is China’s first tech
accelerator for women-led start-ups
launched in 2015
• Services include business consulting,
fundraising, media, talent recruitment,
law, etc.
• CEO Ling Zihan: "If women fail to get
deeply involved in the internet, their
future economic status will be at great
risk,“
• Co-hosting the 2016 “HER STARTUP”
Women-led startup competition
Accelerator: TechBase
36
Case Study: China
Accelerator: TechBase
116Entrepreneurs
interviewed
20+Interviews by
media home
and abroad
14Startups
incubated
14Online and offline
events hosted
400+Women
entrepreneurs
connected
37
Case Study: China
• SOSV is a $235 million USD venture capital
fund founded by technology visionary Sean
O’Sullivan in 1993
• China Accelerator is Asia's first mentorship-
driven seed funding program since 2009
• The program runs 2x per year in Shanghai
• By today, 76 startups have participated
• 28 / 76 startups had at least one female
founder = 37%
• In the last 3 cohorts, 17 / 32 companies had
at least one female founder = 52% female-
founded
• 12 / 32 companies had a female CEO = 38%
female CEOs
Accelerator: SOSV’s ChinaAccelerator
Female-Led Startups in 2014 Cohort:
CEO, Lu Guo CEO, Miranda Tan
38
Thank You!
Deborah Weinswig
Managing Director
US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016
June 8, 2016
