Key Moments
Female Founders Conference 2017
Y CombinatorKey Moments
Female founders often face an uphill battle pitching to a predominantly male VC industry, highlighting the critical need for women to aggressively understand their metrics and company vision, while also demanding integrity and diversity from their investors and teams.
Key Insights
Only 2% of venture capital funding historically goes to women, making it exceptionally challenging for female founders, especially in early-stage seed rounds where bias is more prevalent.
Companies like Goldbelly emphasized demonstrating product-market fit to investors by bringing physical food samples (Key Lime Pie from Key West) to meetings and researching investors' backgrounds to find nostalgic connections, leading to a faster seed round after achieving profitability.
Blavity started as an email newsletter, growing its user base from curating content for black millennials, and only raised its initial $1M+ funding after creating undeniable traction that forced investors to acknowledge its potential, reaching 7 million readers without traditional early-stage investment.
Diane Green of VMware (co-founder, generating a $19.1 billion market cap) advises founders to build companies where founders are 'solidy aligned' and understand that market acceptance of profound innovation is easier if the product is initially non-disruptive but ultimately supplants the established order.
Padmasree Warrior, CEO of Neo, personally interviewed the first 150 hires to ensure a strong cultural foundation, advocating for diverse hiring panels and tactical team-building activities like 'team time' (a fun 2-hour activity once a month) to prevent burnout and foster cross-functional collaboration in large, distributed teams.
Aileen Lee, creator of the 'unicorn' term, notes that women must be confident but not 'overconfident' in pitches, as investors often 'ding' women for exaggerating more than men, and are judged more harshly on quantitative knowledge, requiring deep familiarity with CAC, LTV, margins, and revenue plans.
Embracing curiosity and solving real pain points over passion projects
Many massively successful startups, or 'unicorns,' don't start with a 'big' idea but rather a deep, almost obsessive interest in solving a real problem. Ann Thompson, founder of Poppy (a childcare marketplace), initially failed with a subscription box for Indian heritage because it was a 'vitamin' rather than a 'painkiller'; it was 'nice to have' but not 'must-have.' Her shift to Poppy was driven by her personal 'curiosity and frustration' over the pervasive childcare struggle she experienced with two kids and no local family support, a problem many parents faced. This curiosity, rather than pure passion, kept her humble and user-focused, leading her to build a solution (initially an SMS-based MVP for $200) that directly addressed a widespread need. Similarly, Laura Baron, CEO of Shipo, began with an e-commerce store that was a 'vitamin' before identifying the 'pain point' of inefficient and opaque shipping for online businesses. Their pivot to Shipo, an API for e-commerce shipping, was driven by the realization that no 'Stripe for shipping' existed, indicating a critical, unmet market need. This pattern suggests that deeply understanding and solving acute user pain points, even if the initial idea seems unpromising or niche, is a more reliable path to massive success than simply following a passion.
Bootstrapping to undeniable traction: The power of 'so good they can't ignore you'
For many female founders, especially those from underrepresented backgrounds, bootstrapping to a point of undeniable traction becomes a crucial strategy to overcome inherent biases in funding. Morgan DeBaun, founder of Blavity, a media company for black millennials, bootstrapped for a year in San Francisco, paying her team meager amounts, because her initial pitch—a vision for a broad ecosystem of products for black people—was deemed 'unfocused' by investors who saw only 'a blog on WordPress.' She continued building, focusing on user-generated content (50% of Blavity's content), and saw her blog gain 'a thousand times more traffic' than her initially preferred video platform. This relentless focus on demonstrating growth and product-market fit made Blavity's numbers so compelling that investors *had* to pay attention. Similarly, Flex, a menstrual product company, faced skepticism from male investors who 'don't have vaginas' but secured a $4 million seed round by focusing on building an 'incredible business that speaks for itself.' This emphasizes the need to generate such irrefutable evidence of demand, growth, and unit economics that the market, and even initially skeptical investors, cannot ignore the company's potential. This approach often involves self-funded, lean operations where founders sacrifice personally to prove their concept beyond doubt.
Storytelling, confidence, and knowing your numbers cold in investor pitches
Effective fundraising requires masterful storytelling, unwavering confidence, and an absolute command of financial metrics, especially for women pitching to a male-dominated VC industry. Aileen Lee, coiner of 'unicorn,' emphasizes that women 'have to walk a finer line' than men, as they are often 'dinged for being exaggerators' or 'overly dinged for not being quantitative enough.' Therefore, preparing a pitch means not only articulating a 'big mission and vision' but also presenting a 'doable plan' with 'aggressive but doable' milestones, backed by meticulously calculated numbers like Customer Acquisition Cost (CAC), Lifetime Value (LTV), and margins. Laura Baron's anecdote of being asked to 'draw a picture of your team' by John Doerr (when he wanted an org chart) highlights the need to anticipate varied questions and be prepared for unconventional requests, maintaining composure. Founders like Vanessa Toria of Goldbelly used creative storytelling by bringing key lime pie to meetings and researching investors' nostalgic connections to food, making the pitch immediately tangible and relatable. Elizabeth Science of Science Exchange learned to pivot her pitch from 'enabling breakthrough research' (exciting to her but not investors) to 'economic benefit' and 'market size' to resonate with investors. The takeaway is that preparation and tailoring the message to the investor's perspective, without losing authenticity, are paramount.
The critical role of team, culture, and 'unapologetic' leadership
Building a massively successful company hinges on cultivating a strong internal culture and an 'unapologetic' leadership style that prioritizes people. Padmasree Warrior of Neo, an autonomous electric vehicle company, personally interviewed the first 150 hires to ensure that future hiring leaders would maintain the high bar for talent and cultural fit. Her tactical advice includes implementing 'diverse panels' for interviews (beyond just gender) and institutionalizing activities like monthly 'team time' to foster cross-functional synergy and prevent burnout, even under high-pressure product deadlines. Diane Green, co-founder of VMware, learned that 'no one is indispensable,' and the 'right mix of people, talents, and personalities' is crucial for harmonious work. She championed 'an open culture that would make it easy for people to communicate, collaborate, and share ideas.' This deliberate focus on hiring for fit, nurturing team well-being, and fostering transparent communication creates a resilient environment where individuals can thrive and collectively drive the company's vision forward. An 'unapologetic' leader, like Morgan DeBaun, who doesn't 'ask for permission' to pursue a big vision, empowers her team to think big and take calculated risks.
Navigating setbacks: Persistence over stubbornness and learning from 'failures'
The journey of building a startup is a 'marathon, not a sprint,' characterized by frequent 'ups and downs' that demand persistence, not stubbornness. Laura Baron recalls facing '125 nos' from investors for her seed round before securing $2 million, highlighting the sheer volume of rejection often required. Each 'failure' or setback, like receiving a lawsuit during due diligence, can be reframed as an opportunity to build trust through transparent communication or a chance to re-evaluate and adapt. Diane Green, for instance, turned the disadvantage of not being able to sell VMware through IBM into a benefit by enlisting IBM's star resellers. Similarly, Morgan DeBaun's initial video platform for Blavity failed, but she quickly pivoted to a blog after observing user analytics, demonstrating the ability to 'kill your darlings' and adapt to what the market truly wants. This resilience, coupled with the ability to step back, analyze the 'big picture,' and identify new opportunities that emerge from perceived setbacks, is vital for long-term entrepreneurial success. It’s about being persistent about the *goals* while being flexible and creative about the *tactics* to achieve them.
Mentioned in This Episode
●Products
●Software & Apps
●Companies
●Organizations
●People Referenced
Common Questions
Founders of unicorn startups are often fanatically interested in their company's core idea, driven by a deep ambition beyond just getting rich or looking cool. They possess exceptional drive, are independent-minded, and embrace big, initially 'dubious' ideas with excitement rather than fear, continuously morphing themselves to meet the company's needs (e.g., from product builder to manager).
Topics
Mentioned in this video
A startup accelerator that provides advice, funding, and a network for founders. Several speakers mention their association with YC as participants, partners, or decision-makers for funding.
A media company and lifestyle brand empowering black millennials, founded by Morgan DeBaun. It originated as an email newsletter and evolved into a platform for user-generated content, hosting conferences like AfroTech and EmpowerHer.
Used as an example of a basic yet massively successful startup, initially for Harvard students. Also mentioned as a platform for ad campaigns and a source of trending topics later in the talk.
A company that designs smart autonomous electric vehicles, led by Padmasree Warrior. Their focus is on improving user experience and giving people time back from driving, with plans for Level 4 self-driving cars by 2020.
Padmasree Warrior's previous employer for 23 years, where she started as a line engineer and rose to Chief Technology Officer, gaining diverse experience in various engineering roles.
Project Diane Greene worked on at SGI, which involved interactive television and was a precursor to the World Wide Web, leading to the creation of many startups like Netscape.
Recounted as an example of a simple startup idea that became massively successful by providing rides.
A large tech company where Padmasree Warrior held C-level positions (CTO, CSO) before joining NIO, providing her with experience in scaling companies.
A seed-stage investment fund founded by Aileen Lee, focused on identifying and working with promising technology-oriented startups, emphasizing hands-on support for founders.
Aileen Lee's previous employer, part of her varied career experience prior to her entrepreneurial and investment roles.
Cited as an example of a successful company with predominantly male investors, emphasizing that investors can look past their personal user experience.
A marketplace where customers can discover and order iconic regional foods from across the US, shipped directly to their door. Vanessa Torivio is a co-founder, and the company recently raised a $10 million Series A.
A company that Diane Greene advised and provided seed money to, which later went public, showcasing her investment acumen.
A company that Diane Greene advised and provided seed money to, and which later went public, highlighting her success as a tech investor.
The gaming developer platform that Diane Greene provided seed money and advice to, which also grew to be a public company, further demonstrating her influential role as an early investor.
A company that invested in VMware after its initial seed funding, alongside banks looking to take VMware public, giving VMware significant control as it scaled.
Diane Greene became the head of Google Cloud after selling Bebop to them. She describes the cloud as a 'giant revolution' with immense security and advanced technology capabilities.
Cited as a startup that grew unexpectedly large. The speaker admits initially underestimating its potential, highlighting how big ideas often seem dubious at first.
A modern village platform connecting vetted caregivers to families for on-demand childcare, founded by Anne Thompson Patel. It started by testing demand with SMS and existing tools, securing YC funding after multiple applications.
A venture capital firm that invested $7 million in Shippo during their Series A round, after a competitive term sheet process.
A consumer-oriented portfolio company of Cowboy Ventures, with a female CEO, launching to offer quality everyday essentials at competitive prices.
An Enterprise SaaS company backed by Cowboy Ventures, noted for having a fantastic woman CEO, highlighting Cowboy's interest in diverse tech solutions.
A marketplace for outsourced research and development, serving large pharmaceutical and other science companies. Founded by Elizabeth Science, it recently raised a Series C round and built to a global stage.
A company offering Flex, a new disposable menstrual product that replaces traditional tampons, pads, and cups. Founded by Erica, it has achieved a multi-million dollar run rate and is focused on user needs.
Morgan DeBaun's former employer, where she worked as a product manager learning design for delight. She left to start Blavity, inspired by the lack of products for her community.
Mentioned as a primary source for real-time information during events like Mike Brown's death, and as a platform where black creators generate funny and viral content.
Used by Anne Thompson Patel for her landing page in the early, no-code MVP version of Poppy, highlighting its utility for quick setup.
Handled payments for Poppy's early no-code MVP, mentioned for its ease of integration.
Cited as an example of a successful company where the majority of investors were men, despite the product potentially appealing more to women, illustrating how investors can fund products beyond their personal user experience.
A camera given to Quinta Brunson by Blavity in her early days to document her life, symbolizing Blavity's investment in content creators.
A prominent venture capital firm where Laura Baron-Woo had a memorable and somewhat comical partner meeting experience during fundraising, highlighting the unexpected situations founders face.
Acquired Vxtreme, which formed the basis of Microsoft's movie player. Diane Greene later joked that Microsoft 'paid for VMware' through this acquisition.
Padmasree Warrior is on its board, showcasing her extensive experience in technology and leadership beyond the automotive sector.
Mentioned as a platform for information sharing during Mike Brown's death, pointing to the fractured media landscape for news at critical moments.
Aileen Lee's previous employer, indicating her diverse professional background before venturing into venture capital.
Cowboy Ventures' portfolio company that is consumer-oriented, founded by a female CEO, showcasing their investment in companies led by women.
Blavity's initial primary content platform for curated videos, which later shifted to a blog format based on user preference, showing the importance of iterating on product delivery.
A content aggregation site contextualizing why Blavity initially focused on video and curated content, as this was a popular model at the time.
A platform for startups and investors, mentioned by Morgan DeBaun for researching competitors and understanding the funding landscape.
Mentioned as a competitor that had successfully raised money early on, serving as a benchmark for fundraising that Morgan DeBaun initially struggled to match due to different market and timing conditions.
Diane Greene's first tech company, where she developed asynchronous input/output software to optimize database performance, outperforming competitors like Oracle and Ingres.
A database company that Sybase, where Diane Greene worked, was able to beat in benchmarks with her asynchronous I/O software.
Mentioned as a competitor that had raised significant funding even before launching, highlighting the disparity in fundraising opportunities for early-stage companies, especially those focusing on diverse audiences.
Diane Greene's employer where she developed streaming video solutions as part of the Time Warner Interactive television project, a precursor to the World Wide Web.
Used as an example of a platform where Blavity could potentially launch shows, illustrating their long-term vision for content and brand extension.
Diane Greene's first startup, founded in 1995, which developed low-bandwidth streaming video technology. It was sold to Microsoft in 1997 for $75 million and became the basis of Microsoft's movie player.
Diane Greene's second and most famous startup, founded in 1998, which launched the virtualization revolution. It went public in 2007 with a market cap of $19.1 billion.
Initially, VMware faced issues selling through IBM due to IP concerns, but later collaborated with IBM to leverage their resellers, turning a setback into an advantage.
Diane Greene's third startup, founded in 2013, which aimed to reinvent enterprise applications for simplicity and effectiveness. It was sold to Google in 2015 for $380 million.
Diane Greene's employer where she helped create a hybrid architecture for an open Unix-based world, after her boss was fired from her previous engineering role.
A company that came out of the Time Warner Interactive television project, where Diane Greene had worked, showing the fertile ground for startups in that era.
A seed investor in VMware, who provided initial funding after an hour-long meeting, demonstrating his rapid recognition of deep technology potential. He was also an early investor in Google.
An early investor in VMware, alongside Andy Bechtolsheim, providing initial seed funding to Diane Greene's company.
A professor at Stanford and Diane Greene's windsurfing buddy who, along with Andy Bechtolsheim and John Hennessy, became a seed investor in VMware, quickly understanding the deep technology.
Former President of Princeton University and a fellow female board member at Google (at the time Diane Greene joined), contributing to a more diverse board.
His death sparked protests in Ferguson, Missouri, and was a pivotal moment for Morgan DeBaun, highlighting the lack of centralized information for black communities and motivating her to launch Blavity as a media platform.
A seasoned tech entrepreneur, co-founder of Vxtreme, VMware, and Bebop, and head of Google Cloud. She shares lessons from her extensive career about innovation, culture, and navigating the startup world.
Founder and CEO of Poppy, a childcare platform. She shares her journey from a failed first startup, 'Papaya & Post,' to the success of Poppy, focusing on lessons learned about MVP, user feedback, and persistence.
A prominent venture capitalist at Kleiner Perkins, who asked Laura Baron-Woo to 'draw a picture of her team,' which she comically misinterpreted as a psychological test instead of an organizational chart.
CEO of NIO, known as a 'queen of electric car business.' She transitioned from leadership roles at Motorola and Cisco to NIO to impact the transportation industry with smart autonomous vehicles.
Founder and CEO of Science Exchange, a marketplace for outsourced R&D. She successfully raised a Series C round, discussing the evolution of fundraising from vision-based to metrics-driven as a company matures.
Co-founder of Y Combinator. Mentioned for observations on common startup struggles and the external perception versus internal reality of company success.
Co-founder of Y Combinator, whose essays inspired Anne Thompson Patel to rethink her startup approach and focus on user needs and steady growth.
A prominent Black creator who was supported by Blavity in her early career, illustrating Blavity’s mission to empower artists from the ground up. She later became huge at BuzzFeed and developed millions of followers.
Mentioned as an example of the type of artist Blavity would feature at a music festival, indicating their strong connection to contemporary Black culture and music.
Founder of Cowboy Ventures and credited with coining the term 'unicorn' for billion-dollar startups. She shares insights on venture capital, fundraising for women, and the importance of integrity in the VC industry.
Co-founder and Chief Creative Officer of Goldbelly, a marketplace for iconic regional foods. She shares insights on pitching, emphasizing the use of food samples and tailoring pitches to investors' backgrounds.
Founder of Blavity, a media company and lifestyle brand for black millennials. She discusses her journey from product manager at Intuit to building Blavity, emphasizing community and addressing underserved markets.
Chair of the audit committee and a phenomenal female board member at Google when Diane Greene joined, part of the diverse board that made a significant difference.
Mentioned as an example of the type of artist Blavity would feature at a music festival, aligning with their focus on Black creators and diverse talent.
Mentioned by Morgan DeBaun as an example of Intuit's products that, while about a boring task (accounting), are well-designed for delight.
Utilized by Morgan DeBaun to track Blavity's website traffic religiously, allowing her to identify that text content was performing significantly better than videos.
Used for scheduling in Poppy's initial no-code MVP, demonstrating a low-cost solution for early operations.
Mentioned as a platform providing real-time information during the period of Mike Brown's death, highlighting the decentralized nature of news at the time.
A database for startup information referenced by Morgan DeBaun for researching competitors and potential investors, noting its use for due diligence.
Used by Anne Thompson Patel for sign-ups and feedback forms in Poppy's initial no-code MVP, valuing its free trial for testing.
The platform Blavity initially used to launch its blog, which quickly outpaced its custom-coded video site in traffic, leading to a strategic pivot.
Functioned as Poppy's database in its early, no-code stage, allowing basic tracking of bookings and customer data.
Cited as an example of a successful company where the majority of investors were men, illustrating that investors can back companies even if they are not the direct target market.
A database company that Sybase, where Diane Greene worked, was able to outperform in benchmarks due to her software development.
The product that Vxtreme's technology became the basis for after Microsoft acquired Diane Greene's first startup.
Mentioned as the source for vetting Poppy's first three caregivers, highlighting a local recruitment strategy.
Used Science Exchange to develop the 'blackest material ever measured.' This story, while interesting, was not initially effective in investor pitches until reframed for economic benefit.
Cited as a 'super hot dream boat' investor, used as an example of a top-tier firm to save for later pitches, not as a first practice round.
Where Padmasree Warrior received her chemical engineering degree, marking the start of her academic and professional career.
Where Padmasree Warrior pursued her Master's degree in materials before her accidental career path led her to Motorola.
Mentioned as a revolutionary product that changed the mobile Internet space, drawing a parallel to how self-driving cars will transform transportation.
A new menstrual product that replaces tampons, pads, and menstrual cups. It's designed to be worn for 12 hours, is disposable, and allows for mess-free period sex.
A TV series mentioned as an example of the 'vibe' Blavity might aim for if they were to produce a Netflix show, showcasing their alignment with content for black audiences.
A company acquired by Blavity, focused on Black Hollywood, acting as a counterpart to The Hollywood Reporter, and curating web series and video releases for black creators.
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