The Problem with Patterns + Fundraising Fieldnotes - 6.11.21
How does pattern matching create challenges for BIPOC founders?
Hey - it’s Jason Yeh 🕺🏻
This is my Friday recap of notes I jotted down while helping founders solve their fundraising challenges this past week (6.11.21)
If you have any questions, please reply! I try to get to every comment/question I get :)
First, the problem with pattern matching
It’s self-enforcing. More on that later...
Docsend released its research report on industry bias in fundraising called The Funding Divide last month. In it they covered data they say show a change in the industry that looks like “one step forward and two steps back.”
While teams with a BIPOC team member raised 42% more than teams without one, all-female teams raised 70% less than all-male teams.
The actual numbers DocSend references are that all-female teams raised on average just $195,000 while all-male teams raised an average of $659,529. The difference is staggering when presented like that and while the data say teams with a minority raised 42% more, I worry about what the numbers would say for all-BIPOC teams.
Why did this regression happen? Is it because the VC industry isn’t trying to change? I have some guesses, but honestly it’s really surprising to me (continue reading…)
On to the Fieldnotes for 6.11.21…
There are 6 partners and principals for this one firm - which one goes on my target list? All of them? 😳
I get this question a lot. If you’re doing extensive research trying to figure out what VCs to contact, it can be confusing who should be added to your list.
A common recommendation is to choose the VC that has the most interest in your space. While this is an important filter criteria, I believe it’s secondary to choosing based on how easy it is for you to connect with them.
If I were trying to get a firm to invest in me, I would list every partner and then find which ones I could most easily network into. After that, all things being equal I would use the interests filter to choose who to go after. The rationale is if I can get a warm intro into a partner who doesn’t cover my space, she will then reroute me to the right partner at the firm if necessary which is also a warm intro.
An important reminder to founders in the fundraising battle…
Till next week. Stay adamant and be chased.
p.s. Try NOT to smile looking at this photo of an American Bully in tie dye 😍 (her name’s Rosie🌹). It can’t be done.
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