Your Next Move Podcast Summary: "Put Your Money Where Your Mouth Is"

Episode Overview In the "Put Your Money Where Your Mouth Is" episode of Your Next Move, host Tom Foster engages in a compelling conversation with Anu Dougal, the founder of the Female Founders Fund. Anu shares her journey from co-founding an e-commerce company in India to establishing a venture capital fund dedicated to investing in female entrepreneurs. The discussion delves into the challenges faced by female founders, the evolution of the venture capital landscape, and strategic insights into building successful, diverse businesses.

Anu Dougal's Entrepreneurial Journey

Background and Motivation Anu Dougal begins by recounting her experience co-founding Exclusively, an e-commerce platform in India aimed at making Indian retail brands accessible globally. This venture exposed her to the predominantly male-centric landscape of venture capital, where she observed that less than 2% of venture capital funds were allocated to companies founded by women. This glaring disparity, coupled with a leadership team and customer base primarily composed of women, highlighted a systemic issue in the investment ecosystem.

“Less than 2% of venture capital went to companies started by women and a majority of partners at venture capital funds were also primarily white men.” (02:00)
— Anu Dougal

Identifying the Gap The lack of gender diversity in venture capital not only affected fundraising but also had a cascading effect on talent acquisition and business scalability. Anu emphasizes that the time-consuming process of raising funds diverted attention from critical business-building activities, hindering the growth and potential of female-led startups.

Establishing the Female Founders Fund

Purpose and Vision Recognizing the urgent need to address this imbalance, Anu founded the Female Founders Fund with a mission to invest in and support female entrepreneurs. Her goal was twofold: to invest in high-potential companies and to create an ecosystem that facilitates greater interaction between female founders and traditional venture capitalists.

“Investors are really driven by fear of missing out, particularly on great returns.” (04:17)
— Anu Dougal

Operational Strategies With a lean team of five, the fund focuses on early-stage investments, offering not just capital but also strategic support. Anu outlines three primary areas of assistance:

1. Fundraising Support: Connecting founders with additional investors, refining pitch decks, and practicing pitches.
2. Community Building: Hosting 30-40 events annually covering diverse topics like public relations and hiring, tailored to the needs of female entrepreneurs.
3. Ecosystem Development: Facilitating interactions between female founders and traditional VCs to broaden deal flow and investment opportunities.

Impact and Evolution in the Investment Landscape

Portfolio Performance and Success Stories Anu highlights several successful exits, including Eloquii, acquired by Walmart in 2018, and noteworthy portfolio companies like Maven Clinic, Tala Zola, and Bento Box, each valued at over $100 million. These successes validate the fund’s thesis that female-founded companies are not only viable but also high-performing investments.

“Eloquii was our first exit in 2018. And that was a great indicator again of the fact that there is money to be made investing in female founders.” (11:17)
— Anu Dougal

Growth and Future Plans Currently managing a second fund of $25 million, Anu notes the increasing interest from limited partners in supporting female-led ventures. While the increase from $5.85 million to $25 million signifies substantial growth, Anu remains cautious and strategic in scaling the fund to ensure sustained impact and performance.

Supporting Entrepreneurs Beyond Funding

Comprehensive Support Systems The Female Founders Fund doesn't stop at providing capital. Anu emphasizes the importance of holistic support, including mentorship, networking opportunities, and practical guidance on navigating challenges unique to female entrepreneurs.

Events and Community Engagement Hosting numerous events throughout the year, the fund creates spaces for knowledge sharing and networking, fostering a sense of community among female founders. These events cover a wide range of topics essential for business growth, from PR strategies to effective hiring practices.

“We put on between 30 to 40 events a year. And I think those events, you know, touch on topics like PR, like hiring, a bunch of different areas where founders are looking for help or advice.” (05:21)
— Anu Dougal

Navigating Challenges in a Post-Pandemic World

Adapting to Remote Interactions The pandemic necessitated a shift to virtual meetings, which Anu sees as a positive development. This adaptation has allowed the fund to invest and engage with founders without the constraints of physical proximity, broadening their reach and efficiency.

“We are now comfortable with making investments without meeting a founder face to face.” (15:22)
— Anu Dougal

Evolving Entrepreneurial Trends While the pandemic didn't significantly increase the number of entrepreneurs, it influenced the types of businesses being founded. Anu observes a surge in digital health startups and tools supporting the creator economy, reflecting the changing needs and opportunities highlighted by the global crisis.

Addressing Diversity Beyond Gender

Commitment to Racial and LGBTQ+ Diversity While the primary focus remains on supporting female entrepreneurs, the Female Founders Fund is equally committed to fostering racial diversity and supporting LGBTQ+ women. Anu stresses the importance of transparency by publicly releasing diversity statistics and encouraging other funds to do the same.

“We are very committed to also racial diversity. So every year we release our stats around diversity... to really encourage others to do the same.” (28:43)
— Anu Dougal

Leadership and Personal Productivity

Efficient Team Management Anu shares her strategies for maintaining efficiency and alignment within a small team, including daily touchpoints and clear prioritization of tasks. She advocates for practices like walking meetings to incorporate movement and maintain productivity.

“We have a team touch base for about 10, 15 minutes every morning. And that I have found to be incredibly helpful just in terms of making sure everyone's priorities are aligned.” (29:30)
— Anu Dougal

Key to Success: Gentle Persistence Anu attributes much of her success to "gentle persistence"—the ability to persistently and politely push forward despite setbacks. She believes that showing up consistently is crucial to achieving long-term goals.

“Our team has adapted to a certain degree, which is gentle persistence. So never really taking no for an answer and finding a way to not aggressively but politely and gently persist.” (31:18)
— Anu Dougal

Global Perspectives and Future Directions

International Investment Opportunities While the fund primarily focuses on the United States, Anu acknowledges the emergence of similar funds in the UK and Europe, indicating a growing global recognition of the importance of investing in female-led ventures.

“There are a few funds in the UK and Europe... if you Google there are a couple that have come up.” (31:52)
— Anu Dougal

Continuous Advocacy for Diversity Anu concludes by reaffirming the fund's dedication to closing the gender gap in venture capital and promoting broader diversity within entrepreneurship. Her vision includes not only supporting female founders but also creating a more inclusive and equitable investment landscape.

Conclusion Anu Dougal’s insights shed light on the persistent gender disparities in venture capital and the transformative impact that dedicated funds like the Female Founders Fund can have. Through strategic investments, comprehensive support systems, and unwavering commitment to diversity, Anu is paving the way for a more inclusive entrepreneurial ecosystem. Her journey underscores the importance of resilience, strategic vision, and the power of community in driving meaningful change.

Notable Quotes

1. “Less than 2% of venture capital went to companies started by women and a majority of partners at venture capital funds were also primarily white men.” (02:00) — Anu Dougal
2. “Investors are really driven by fear of missing out, particularly on great returns.” (04:17) — Anu Dougal
3. “Eloquii was our first exit in 2018. And that was a great indicator again of the fact that there is money to be made investing in female founders.” (11:17) — Anu Dougal
4. “We are now comfortable with making investments without meeting a founder face to face.” (15:22) — Anu Dougal
5. “We put on between 30 to 40 events a year. And I think those events, you know, touch on topics like PR, like hiring, a bunch of different areas where founders are looking for help or advice.” (05:21) — Anu Dougal
6. “Our team has adapted to a certain degree, which is gentle persistence. So never really taking no for an answer and finding a way to not aggressively but politely and gently persist.” (31:18) — Anu Dougal

Final Thoughts For aspiring female entrepreneurs and stakeholders in the venture capital ecosystem, Anu Dougal’s experiences and strategies offer invaluable lessons on overcoming systemic barriers, leveraging strategic support, and fostering an inclusive business environment. The Female Founders Fund stands as a testament to the potential unleashed when dedicated resources and unwavering commitment converge to empower underrepresented founders.