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European VC: a look at female founder data in Q1 2022. And listen to our podcast with Kisha Mays about how to generate a $1m+ revenue startup
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European VC: a look at female founder data in Q1 2022. And listen to our podcast with Kisha Mays about how to generate a $1m+ revenue startup

Welcome to our #111 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova


From The Purse


In this week’s newsletter, we focus on European VC and female founder data for Q1 2022. The numbers indicate a fall in capital invested in female (co-)founders which seems to correlate to a deteroriating economic environment.

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You can review the news in brief so you stay on top of global financial, economic and investing trends.

And don’t forget to listen to The Purse Podcast interview with Kisha Mays. Kisha is a successful serial entrepreneur, an angel investor and a philanthropist. We talk about how female founders can generate $1m+ business.

I hope you enjoy this week’s newsletter.

Until next week,

Jana


European VC: a look at female (co-)founder data in Q1 2022

Venture capital investments to female founders has dropped compared to Q1 2021.


Female founders struggle to raise capital from venture capital (VC) firms.

This is despite female founder outperformance, their startups exiting earlier at higher valuations per dollar invested, and VC funding surging in recent years.

Last year in Europe, only 1% of VC funding of total capital invested was allocated to startups founded solely by women, as per Pitchbook.

Here are some key stats for Q1 2022:

  • Female (co-)founded VC deal count %:

    • Female founded only: 4.9%

    • Female & male founded: 15.8%

  • Female (co-)founded VC capital %

    • Female founded only: 0.9%

    • Female & male founded: 9.9%

  • European venture capital deal flow by female (co-)founded companies

    • Capital invested: €2bn (vs €3.3bn in Q1 2021)

    • Deal count: 434 (vs 607 in Q1 2021)

We’re seeing a drop in VC investments going to female (co)-founders globally..

…which seems to correlate to a worsening economic environment. Inflation is running hot, central banks are raising interest rates and investors are anxious about whether or not a global recession is imminent.

If female (co)-founded startups are (wrongly) regarded as ‘more risky’, mostly male VC investors will allocate capital to ‘what they know’; specifically investing in male-founded teams during times of uncertainty.

It’s why female investors are key…

…because we know that women tend to invest in female founders at least 2x the rate men do.

They also apply a new lens to investing and represent the lived experience and perspective of 50%+ of the population.

Female founders are not only up against gender bias, but they have to spend more time educating the majority male investors on their market and product.

It follows that female entrepreneurs have less resources to run their company for longer, so when they do raise capital (for their startup), they tend to be more effective money managers and generate a better return on investment.

As more female founders exit their companies and generate higher exits, we’re likely to see more capital flow back into women.

Women (and men) investing back into women is a crucial part of diversifying the money flow, backing female founders, growing entirely new industries and companies. And ultimately driving higher returns on investment.

What next? (Re) read this:

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News in Brief


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The Purse Podcast


We cover the following in our conversation:

  • female founders

  • how to generate a $1m+ revenue startup

  • Kisha's $100m global initiative investing in female founders

  • and more

Please enjoy! Listen on Apple podcasts and Spotify+


Coffee Break? Read This



We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

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