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Victress Capital, a fund founded by women to back women founders, just closed its second fund

Victress Capital, a fund founded by women to back women founders, just closed its second fund

Women begin 40 p.c of the companies within the U.S., however they obtain simply 3% of enterprise funding. It doesn’t take a math whiz to acknowledge that such an excessive funding hole may spell alternative, nevertheless it may assist if you’re math minded, a longtime investor, and occur to be girl and so conceivably perceive sure merchandise and pitches higher than some males.

That was definitely the considering of each Lori Cashman and Suzanne Norris, who got here collectively in 2016 to type Victress Capital outdoors of Boston, a consumer-focused seed- and early-stage agency that simply closed its second fund with almost $22 million in funding to again gender numerous groups, that means there may be no less than one girl on the founding group.

Cashman is a Duke grad who has spent her profession as an investor, together with beforehand cofounding a personal fairness agency, Linear Capital, to take a position completely in owner-managed companies. Norris, in the meantime, who has two levels from Harvard, has been an funding banking analyst, a administration marketing consultant, and spent almost 4 years as a VP centered on e-commerce with Kate Spade.

The two pleasant acquaintances initially joined forces to reinforce their “cognitive range,” says Cashman, scraping collectively a complete of $2 million from family and friends so they might set up a monitor document.

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Ultimately, they used that cash to fund 14 startups by writing checks starting from $100,000 to $150,000. A few them have already been acquired. Moxxly, which offered silent, wearable breast pumps, was acquired by Medela, a number one breast pump maker, in 2017. Last. summer season, it was shut down, however Cashman and Norris counsel that buyers (one other of whom was Randi Zuckerberg) acquired their a refund and that they had been comfortable to see it acquired by what what appeared on the time like a really sturdy strategic accomplice. A second portfolio firm, Werk, extra lately offered to a Chicago-based startup referred to as The Mom Project for undisclosed phrases.

Others of their bets embody Daily Harvest, a direct-to-consumer natural meals supply enterprise that has thus far raised $43 million from buyers, in accordance with Crunchbase; Mented Cosmetics, a cosmetics firm catering to girls with darker pores and skin tones that has raised $four million thus far, in accordance with Crunchbase; and Copper Cow Coffee, a younger L.A.-based startup that makes natural Vietnamese espresso and has raised $Three million, per Crunchbase.

The concept all alongside was to lift a bigger fund in order that as Victress’s younger portfolio matures, it could actually make investments extra into its breakout winners, in addition to to fund different modern younger startups.  In reality, towards that finish, Victress — whose latest fund got here largely got here from household places of work — has added to its group in recent times. In February, it. introduced in Kate Castle, a longtime advertising and marketing accomplice at Flybridge Capital Partners who later cofounded XFactor Ventures as a accomplice. In 2018, it additionally employed HBS alum Madeline Keulen, who beforehand interned with Victress and is now a vice chairman. (Because of Norris’s background and community, Victress receives a few of its deal from Harvard and HBS and usually brings in HBS college students as interns.)

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It wasn’t simple assembling its group — or its new fund. Norris half-kiddingly calls $20 million “no man’s land” within the eyes of institutional buyers. Though they’re simply now closing the automobile, they started assembling checks for it in late 2018 and have already funded seven startups that signify 25% of their new investing capital.

Still, they’re taking part in the lengthy recreation and suppose the relationship-building they’ve achieved alongside the best way will repay — each with institutional buyers that can be monitoring this second fund and with enterprise companies across the nation with whom they’ve been co-investing and that now attain out to Victress when they’re nascent startups with numerous founding groups.

A giant win must also assist, in fact. While it’s not possible to know now whether or not they’ll have one, the group appears significantly excited a couple of Minneapolis-based startup that they’ve backed referred to as Rae that makes what it markets as libido-enhancing vegan nutritional vitamins and that not solely sells them on to shoppers however has shelf house at Target, a retail big that has remained open all through the pandemic.

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It’s very useful actual property, and Rae was in a position to safe it partly as a result of its cofounder and CEO, Angie Tebbe, spent the earlier 12 years as a senior director in merchandising, the place she oversaw the non-public label merchandise within the chain’s magnificence and wellness aisles.

Rae’s merchandise are additionally priced affordably, with a 30-day provide of nutritional vitamins costing $14, in contrast with many alternate options that value twice as a lot and extra.

That’s partly why Victress is so enthusiastic concerning the startup. Victress is concentrated on tech-enabled shopper providers, marketplaces and digitally native manufacturers. But if a startup within the final camp desires its consideration, it had higher additionally function an “genuine, accessible worth level for majority of America,” says Cashman. “That’s vital to us.”

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