Bridging the Gap: Women Funding Women is Building a Collective to Change the VC Landscape for Good
“We wanted to know how we could be a catalyst for change and not just talk about it anymore.” Sherry Shannon-Vanstone
Three visionary women, Sherry Shannon-Vanstone, Deborah Rosati, and Lara Zink, have come together to create a hive mind known as "Women Funding Women” to challenge the status quo in the venture capital world and reshape the landscape for women founders and funders. They recently sat down with Disruption to explain the genesis of their initiative and its mission.
Shannon-Vanstone, a serial entrepreneur with five successful ventures under her belt, speaks candidly about her fundraising challenges despite her impressive track record of two acquisitions and two IPOs. The tipping point came when she realized she was often the lone woman pitching in a room.
Fueled by this experience, she shifted her focus to pitch primarily to women, drawing on the support of Deborah Rosati, a founder, CEO, and a Chair of Shannon-Vanstone’s board. Together, these two powerhouses embarked on a journey that raised $3.125 million for her company, Profound Impact Corporation, predominantly from female and first-time angel investors.
The experience was a lightbulb moment.
“We wanted to know how we could be a catalyst for change and not just talk about it anymore,” Shannon-Vanstone says.
“Without access to the same funding opportunities, women lose their ambition to go big, go bold to scale up their ventures,” says Rosati. “Women founders do not need more mentoring or coaching, they simply need access to funders that will invest in their vision, conviction and bold ideas.”
They realized they had the power to impact the ecosystem in a major way by bringing women together. The effort began when Shannon-Vanstone and Rosati brought Lara Zink into the fold. Zink, with her background in capital markets, joined the conversation on how to move beyond discussions and become a catalyst for change. The result: Women Funding Women, not a fund, but a collective focused on fundamentally changing the VC landscape.
“I am thrilled to join Sherry and Deborah on this journey. With the help of our outstanding advisory council and our new national founding partner, Osler Hoskin & Harcourt LLP, we are determined to bridge the funding gap by attracting more women angel investors as direct investors,” says Zink.
The urgency of their mission couldn’t be clearer. There’s no shortage of research showing that women funders receive just a fraction of the available venture capital funding. But it goes further than that. A recent report from The51 shows that achieving gender parity in investing could add $3.2 trillion to global capital markets.
“We want women funding women, and hope that we can start to move the needle,” says Shannon-Vanstone, "to both increase capacity and bring the focus to women and minority founders."
Women Funding Women aims to increase access to funding for women founders, foster collaboration and amplify existing efforts within the ecosystem. Its four key goals focus on increasing funding access, empowering women founders, fostering collaborative networks, and promoting gender equity to drive economic growth while closing the funding gap. However, what sets it apart is its commitment to building bridges across borders.
The initiative plans to launch in February, with an exclusive event in Toronto bringing together investors, entrepreneurs, advocates, and allies. Shannon-Vanstone and Rosati recently attended the Pathway to Silicon Valley program and met with funders there who have already confirmed their participation in the February launch event.
The trio envisions the launch event as more than just a gathering; it's a platform for dynamic interactions, mentoring, and learning experiences. A crucial element is encouraging potential funders, especially women with the capacity but may be risk-averse, to take that step into angel investing.
Shannon-Vanstone acknowledges the risk aversion but reframes it as becoming "risk-aware." Women are encouraged to set aside a small percentage of their portfolios, and Women Funding Women along with partners in the collective will provide the necessary support and education through in person and online courses.
As the initiative prepares for its launch, the women envision success over the next few years in a few ways: attracting 10-20 new women angel investors every year, doubling the number of women-led funds in Canada, increasing the representation of women in venture capital from 11% to 15%, and tripling the current 2% of funds going to women-led ventures. The ultimate measure of success, according to Shannon-Vanstone, lies in the increased funding for women founders and the growth of women funders.
Ultimately, Women Funding Women is poised to revolutionize the startup funding landscape for women led-ventures. One connection and investment at a time, Women Funding Women is breaking barriers and building bridges for a more inclusive and prosperous future.