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Stanton: LP diversity statements inversely correlate with actual diverse manager investments

Katie Stanton · 20VC: Moxxie Ventures' Katie Stanton on What It Takes To Raise A First Time Fund As A Solo GP, The Entrance of Multi-Stage Funds Into Seed Rounds and The Inverse Relationship of Those That Fund Diverse Managers and Those That Say They Do · Jan 27, 2020 · at 16:31

Katie Stanton, founder of Moxxie Ventures, addresses the obstacles faced by female, older, and diverse managers when raising capital from institutional LPs.

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“And in my experience and several other people I know, we found an inverse relationship between the LPs who are very public about funding diverse managers and those who do so”

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More from Katie Stanton

Disclosure

Stanton turned down Juul CMO role, calling the company ridiculous

“So Jewel is a ridiculous company. They had approached me while I was working at Color, and Color, as you know, is a health tech company trying to help people stay healthy by understanding their genetics and predispositions to things like cancer, and a recruite…”

Katie Stanton Jan 27, 2020 ▶ 33:51 20VC: Moxxie Ventures' Katie Stanton on What It Takes To Raise A First Time Fund As A Solo GP, The Entrance of Multi-Stage Funds Into Seed Rounds and The Inverse Relationship of Those That Fund Diverse Managers and Those That Say They Do

Assertion Supported

Stanton: Seed valuations reaching $10M–$30M pre-product are unjustifiably high

“As you know, too, valuations in venture right now are just unjustifiably high. And it's so difficult to invest in a company that is pre-product, pre-revenue, basically zero data, valued between 10 and twenty million dollars. I've seen some seeds in the thirty …”

Katie Stanton Jan 27, 2020 ▶ 21:10 20VC: Moxxie Ventures' Katie Stanton on What It Takes To Raise A First Time Fund As A Solo GP, The Entrance of Multi-Stage Funds Into Seed Rounds and The Inverse Relationship of Those That Fund Diverse Managers and Those That Say They Do

Disclosure

Stanton: Female-led YC startups valued under $15M, male-led up to $37M

“What I found was that the female-led companies at YC that I met with were valued less than fifteen million. The male-led companies were valued much higher, as high as thirty-seven million.”

Katie Stanton Jan 27, 2020 ▶ 25:57 20VC: Moxxie Ventures' Katie Stanton on What It Takes To Raise A First Time Fund As A Solo GP, The Entrance of Multi-Stage Funds Into Seed Rounds and The Inverse Relationship of Those That Fund Diverse Managers and Those That Say They Do

Opinion

Stanton: Early-stage founders should include specialized micro-funds over mega funds

“I do think it's better for a lot of founders at the earliest stages to have at least one or two of these micro funds who specialize in this stage or in a particular sector and who truly care that can roll up their sleeves and add value to the teams and be part…”

Katie Stanton Jan 27, 2020 ▶ 19:45 20VC: Moxxie Ventures' Katie Stanton on What It Takes To Raise A First Time Fund As A Solo GP, The Entrance of Multi-Stage Funds Into Seed Rounds and The Inverse Relationship of Those That Fund Diverse Managers and Those That Say They Do

Insight

Stanton: Venture check sizes should fit fund size, not ownership targets

“Bottom line, like, if you have conviction on the team, you should write the check, and you should right-size it for your fund, not necessarily your ownership target.”

Katie Stanton Jan 27, 2020 ▶ 22:36 20VC: Moxxie Ventures' Katie Stanton on What It Takes To Raise A First Time Fund As A Solo GP, The Entrance of Multi-Stage Funds Into Seed Rounds and The Inverse Relationship of Those That Fund Diverse Managers and Those That Say They Do

Assertion Supported

Hashtag Angels and Carta study finds women hold only 9% of equity

“When we partnered with Carta to measure the gap on the cap table, aka the gap table, we found that only nine percent of equity value goes towards women, and that's looking at over 6000 companies, 15,000 founders, 180,000 employees”

Katie Stanton Jan 27, 2020 ▶ 24:50 20VC: Moxxie Ventures' Katie Stanton on What It Takes To Raise A First Time Fund As A Solo GP, The Entrance of Multi-Stage Funds Into Seed Rounds and The Inverse Relationship of Those That Fund Diverse Managers and Those That Say They Do

Stanton: LP diversity statements inversely correlate with actual diverse manager investments

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