Posts

Read Full Report: Pitchbook

Last week, Pitchbook released the results of a global survey of investors and advisors about sustainable investments. Across a mix of LPs, GPs, Fund of Fund Managers, and other private market ecosystem participants (including angel investors), survey participants provided insights into impact investing, environmental, social, and corporate governance (ESG) policies, and the evolution of this rapidly maturing industry.

Of particular interest, the report features an interview with Christine Tsai, CEO and Founding Partner of 500 Startups, on ESG policies in early-stage startups. As she notes, “one common misconception is that it’s too early for young companies to integrate ESG policies…but it’s never too soon [for VCs] to raise awareness by asking startups in their formative stages to think hard about the long-term impact of their actions as they outline their mission.” Strong ESG leadership allows companies, even startups, to capture opportunities and mitigate risk that may otherwise be overlooked.

At RVC, we are often thinking about how to mobilize capital in a more inclusive, sustainable and impactful way. This week, the RVC team is virtually attending SOCAP, a world-renowned conference series dedicated to increasing the flow of capital toward social good (say “hi” if you are attending too!). We are also looking forward to bringing together women founders, funders, and allies for an evening of community-building and angel investing at Reversing the Trend: Funding Female Founders on November 19. We hope to see you at an upcoming event soon!

Read Full Report on Pitchbook

In a new report focused female-founded ventures, Pitchbook has identified a concerning downward trend in VC funding for women-led companies. Their data reflects a decline in both deals and capital invested, with firms investing a total of $434 million in Q3—the lowest figure since the second quarter of 2017. Q3 2020 also reflects a 48% drop in funding from Q2, when female founders received $841 million across 132 deals.

Why is this happening? The report brings forth a few hypotheses: venture capitalists’ unwillingness to adopt new processes related to deal flow; additional caretaking and remote-schooling responsibilities that disproportionately burden mothers; economic uncertainty discouraging risk-taking; and the trend toward follow-on vs new investments in the downturn. 

While RVC’s angel investment portfolio has maintained close to 50% investment in companies founded or led by women, the contracting venture capital ecosystem represents an increased need to mobilize female founders and investors. RVC and the Women’s Investor Network are bringing together women founders, funders, and allies for an evening of community-building and angel investing at Reversing the Trend: Funding Female Founders on Thursday, November 19 from 3-6pm MT. 

At this event, investors and community supporters can learn and discuss with industry experts, hear pitches from women seeking capital, network with founders and funders, and start the RVC angel investment process, all in a virtual setting.