The Hitchhiker's Guide to Venture Capital
Romans' VC blog with musings and stories related to venture capital, growing value and M&A. Author of McGraw Hill August 2013 published book - THE ENTREPRENEURIAL BIBLE TO VENTURE CAPITAL: Inside Secrets from the Leaders in the Startup Game - available on Amazon, Barnes & Nobel, iTunes and other online and offline stores. Translated and published in Chinese, Japanese and Russian languages. Full blog posts are posted to http://rubicon.vc/blog/.
Startups Led By Women Do Better
Brian Cohen, chairman of New York Angels, first investor in Pinterest and a true friend of mine, recently published a must read book What Every Angel Investor Wants You to Know.
The book focuses on teaching entrepreneurs how to raise angel funding effectively as well as helps angels be more successful making angel investments. I recommend that all entrepreneurs, VCs and ecosystem players pick up a copy.
He makes a strong case about why startups led by women do better.
- DowJones VentureSource conducted a study of 20,194 US-based companies that raised funding between 1997 and 2011 and found that women led companies have a greater chance of going public, operating profitably, or being sold for more money than they’ve raised.
- Successful companies had 7.1% female executives compared to 3.1% at unsuccessful companies.
- Women consumers make the majority of purchasing decisions in the US.
- Women are behind 85% of all consumer purchases and 55% of consumer electronics.
- Companies with women leading product design and marketing tend to outperform companies lacking gender diversification.
- The Nielsen Company estimates almost all income growth in the US over the past 15 to 20 years has been generated by women exercising their growing economic influence.
Brian then goes into more subjective depth as to why women led companies outperform the market for instance arguing that women are more concerned with the well being of their team and that they are more likely than men to consider feature-sets, market segments, or brand statements designed to appeal to women.
No doubt diversity builds strength. If you consider that Israel has unlocked 50% of its human capital by including women in the military, business and government, the US and Europe would benefit in the same way by unlocking half of our human capital. I would encourage more women to go into entrepreneurship. Only 1.3% of the 20,194 companies examined by DownJones VentureSource had women founders.
I strongly recommend reading Brian’s book. Few authors succeed in translating their unique personality into their writing. As a good friend of mine, Brian is an amazing truly unique person and he succeeds in bringing that magic personality and passion for angel investing into his book which is packed full of great lessons and advice. (McGraw Hill: What Every Angel Investor Wants You to Know)