☕ The Bulletin #44: Gender Disparities in VC, the 2024 IPO Market Resurgence, and all about Coffee + Coworking with Contrary
In our last newsletter of the semester we delve into the VC funding gap, explore the 2024 IPO wave, and recap our coffee + coworking session with Contrary,
💸 The VC Funding Gap
The VC landscape is a stark terrain for female entrepreneurs- in the intricate world of investing in early-stage companies a fundamental truth emerges: it’s a game of relationships, where familiarity often steers investment choices. 👪🏼 The space remains overwhelmingly male-centric, with women grappling with glaring underrepresentation in both entrepreneurial and investor spheres. The data paints a disheartening picture: companies founded by all-female teams secure a mere 3% of venture capital investments, while women constitute less than 15% of decision-makers in the space 😬.
An anonymous male investor told the Harvard Business Review “Ultimately, venture capital at the early stages is a people thing, I’m betting on you. People are just more comfortable betting on somebody that is more like them, looks like them, talks like them, went to the same schools, eats the same food, goes to the same restaurant, drinks the same wine, goes to the same country club, all these little things. They’re not overtly racist or overtly discriminatory, it’s just comfort. Ultimately it’s a comfort thing.”.
This sentiment emphasizes the urgent need for a paradigm shift 🌐. The preference for individuals with similar backgrounds perpetuates a cycle that does not encourage out-of-the-box innovation - an essential trait for startup success. The call for increased female representation is not only a matter of social justice but also an economically strategic move given that over 80 percent of purchases and purchasing influence are wielded by women💵. Female founders and investors exhibit a unique ability to gauge product-market fit, providing diverse viewpoints. As the industry grapples with these challenges, there is an opportunity for transformative change 🌊.
🗓️ The 2024 IPO Wave
The IPO market, once sluggish, is showing signs of revival with major tech companies like Arm, Instacart, and Klaviyo going public in September alone💹 . While their post-IPO performance has been mixed, their successful public offerings signal a market resurgence. CB Insights has released a list of 257 venture-backed companies that could hit the public market in 2024.
Shein, the Chinese fast-fashion giant, plans to go public in 2024 with an ambitious valuation of up to $100 billion, surpassing H&M and Zara combined, potentially making it one of the world's most valuable private companies🕴️. However, its IPO faces regulatory scrutiny due to labor practices, a concern for U.S. government officials. This scrutiny may not only impact its U.S. debut but also influence other major players' IPOs, including Reddit, a leading IPO candidate for two years.
Reddit recently began holding talks with potential investors for their IPO filing as well as refreshing its branding, including a new 3D mascot, typeface, and color scheme🎨. The rebranding is an attempt to improve the company’s image post the June 2023 API debacle that caused many third-party apps to stop working. Ad performance has also been boosted by forcing personalized ads in addition to a user payment program all in an attempt to bolster their image and ensure they get the highest IPO possible.
🧑🏽💼Coffee and Coworking with Contrary
On Saturday 12/3, VWV co-hosted the Coffee and Coworking event with Contrary. This event provided students working on a side project with an opportunity to talk through their ideas with others, make some tangible progress, and explore the opportunity to raise a funding round💱. With over 20 attendees, we hope that this will be the first of many builder sessions we host on campus.
That’s it for this week, feel free to email me at lara_gamaleldin@brown.edu with any inquiries!
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