Getting Down to Brass Tacks: A Panel Discussion with Five Women Entrepreneurs on VC Funding and What it Takes to Succeed
Kathy Berardi
PR & Marketing Storyteller, Producer & Writer, UCLA School of Theater, Film & TV Alum, Working Parent
For centuries, the American dream has been built on the vision, courage and stamina of business entrepreneurs. As the people who take on the risk of starting a new venture, entrepreneurs have defined civilization through their resilience and relentless pursuit of excellence. As a society, we rely on that creativity and determination to bring forth new ideas and solutions and the role women entrepreneurs play in that evolution continues to expand.
That being said, gaining access to the financial resources to significantly grow a company can still be difficult for women entrepreneurs. So, when I first encountered the Atlanta-based venture capital team at BIP Capital (in a client meeting as a PR team member with Carabiner Communications), it was affirming to learn that nearly a quarter of the firm’s portfolio companies were led or founded by women. Positioning itself as “the entrepreneurs behind the entrepreneurs,” BIP Capital focuses on more than just infusing ventures with cash. Instead, it takes a proactive role in developing operational processes, building leadership teams and refining “go-to-market strategies” with its portfolio companies.
As a female entrepreneur myself and a mom raising an aspiring entrepreneurial daughter, I fully embrace inspirational messages that speak to women and girls on their potential. However, when it comes to transforming that optimism into actionable business steps, it’s important to “get down to brass tacks” by learning from women who are making it happen as leaders in their fields. For this piece, I had the honor of learning from the successes of five influential women leaders in BIP Capital’s portfolio:
Louise Wasilewski, CEO, started the company Acivilate to create second chances for individuals desiring to break the cycle of incarceration. With 25 years of experience in communications technology and cloud-based services, Wasilewski used her expertise in consulting, sales, business development and product management to improve outcomes of the criminal justice system, thereby improving the lives of the underserved.
Christy Johnson, CEO, uses her vast experience investing in entrepreneurial ventures to lead Achievelt, a company dedicated to SaaS-based solutions and technology for the digital age. Helping organizations to gather and analyze critical information, Johnson’s company promotes the growth and expansion of businesses.
April Foster, CEO at Inked, has built commerce and revenue through the development of brands and a highly optimized e-commerce marketplace platform. Foster works to turn social brands into profitable enterprises through the effective use of marketing, product development and customer service.
Lori Lipocky, CEO of Aspirion Health Resources, used her unique experience and expertise in insurance and revenue reimbursement to ensure hospitals are properly compensated for their services.
Rachel Orston, CEO, has applied her considerable experience launching and marketing new technology brands to lead UserIQ, a SaaS business dedicated to helping companies improve end-user adoption and onboarding to accelerate time-to-value.
Collectively, BIP Capital’s investment portfolio is 24 percent women-led, a statistic not often seen in the VC world. According to data from PitchBook and as reported in Fortune, “all-women teams received 2.2 percent of 2017’s total pot of VC funding.” The article also notes that “in terms of deal count, women-founded companies made up 4.4 percent of all VC deals.” To me, these numbers emphasize the tremendous accomplishment of BIP Capital’s portfolio of companies led by women.
In a recent panel Q&A discussion, the aforementioned five female CEOs shared aspects of their success stories as well as lessons learned:
1. How did you get to where you are today and what did you learn from any obstacles you overcame along the way?
Hands down, the most impactful milestone was when I hired my first CFO. I was able to understand the business so much better and felt like I could run with what I was great at without being held back by what I wasn’t. He was able to make an impact on the business in a few short, precious months. His hiring enabled me to get through our first round of institutional funding and eventually hire our second CFO, thereby enabling investors—and me—to visualize the business much more clearly.
—April Foster, Inked
Making the first sales in a new market at a startup gave me the confidence to later sell at my own company. Assembling and launching a product line with components across multiple countries and companies was an epic undertaking, but we sold the product on five continents. I've always taken on things that haven't quite been done before and a startup is an endless series of puzzles to solve.
—Louise Wasilewski, Acivilate
For me, it was always about a journey to become a better leader. And, I think a lot of that is learning how to lead yourself out of a job. By that, I mean building a strong enough leadership team and team culture that eventually the team can thrive without you.
—Rachel Orston, UserIQ
2. What are your thoughts on the importance of seeking out a VC firm that is supportive of female leaders?
Diversity among a VC firm’s portfolio leadership is an indication that a fund is committed to looking for, and working with, the best person for the job regardless of gender or race. There are a lot of what I consider to be female strengths that lend themselves well to working with earlier stage companies. Being comfortable with ambiguity, strong communication and listening skills, the ability to innovate and methodical management and goal setting are just some of those strengths. VCs who recognize this are much more likely to have women leaders represented across their portfolio.
—Christy Johnson, Achievelt
I would absolutely recommend that female founders find investors with female representation in their portfolio. These are the women who could become their mentors and/or sit on their boards. I think it’s vitally important to have more than one woman on your company’s board, especially if you’re in a consumer industry or one that addresses a mostly female audience. That said, I always recommend entrepreneurs look first for investors that align with their company’s goals. That’s key to them truly being a partner to your business.
—April Foster, Inked
I’ve always had a career and have had to handle the demands of my job while prioritizing the needs of my family, which can often be challenging. I actually believe that the ability to juggle all the different demands of work and family can be very beneficial when taking on the role of CEO. Unfortunately, sometimes others make negative assumptions about the ability of a woman to do both and the “good old boy network” is still a reality, which may be why there are still so few women in C-suite roles. I’ve never felt that BIP Capital had any such bias and they demonstrate that by having women leaders in their portfolio.
—Lori Lipocky, Aspirion Health Resources
Find investors who are passionate about your markets and vision—find that fit wherever it is. Find investors who are incredibly enthusiastic about what you’re doing and can help you even in the early stages of growth.
—Rachel Orston, UserIQ
3. When seeking out VC funding to start or grow companies, what specific advice can you offer to other women?
Be willing to share your challenges instead of only boasting of your achievements. And absolutely don’t be afraid to push back when it’s appropriate. Doing it politely but firmly is a way to garner respect and show your expertise. If you can't have a healthy discussion with a VC before an investment, you'll stand no chance once their cash is on the line. Finding the right investor requires asking yourself: How do they add value? Do they listen to you? How do they react to setbacks? And do you look forward to talking to them enough that you want to do so regularly for the next five years?
—Louise Wasilewski, Acivilate
It takes work to find the right investment partners, and not all will be the right ones. Be prepared to be told no, and to sometimes say no. Many times your “no” connections will refer you to ones where you both say yes. It also helps to have referrals from within your network. Building a strong network is a priority in any business, and the contacts you have in it should be able to already weed out partnerships that wouldn’t be right for you. Lastly, be patient—everything takes longer than you think it will.
—April Foster, Inked
Women looking for a VC to help grow their company need to understand that when you choose a VC firm, you’re looking for individual partners who not only share the excitement and vision of your product or service, but who will also support you and provide the resources you need to grow as a leader. Having other women-led companies in its portfolio can be a good sign that the VC firm values performance, regardless of gender.
—Lori Lipocky, Aspirion Health Resources
There are two things a good VC can do for you—and neither has anything to do with money. First, a VC can help shorten your learning curve with either their operational expertise or what has been learned through other companies in their portfolio. Second, they can make introductions to potential customers or employees. So, look for VC partners with experience in your space, deep connections in the community and the desire to be more than just funding. Do as much diligence on them as they do on you. Talk to other founders or operators about them. And remember, when you take their money you give up some control. But you will gain other, valuable expertise on critical things like go-to-market strategy and product development. Make sure you choose someone you trust and that you will enjoy working with.
—Christy Johnson, AchieveIt
I’m personally grateful to these women leaders who shared their unique insights with me on this topic. Each is working day in and day out to succeed in her business, and each exemplifies the success that can be achieved by women CEOs. If there’s anything that drives VC investment interest, it’s the performance of a strong company with a dedicated leader. By making their own mark on the business world, these five women are motivating female generations of entrepreneurs for years to come—my own daughter included! Inclusivity and diversity can only make our business fabric stronger.
Inspiring women!