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…)

Read the full post

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.

Jason

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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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