Female Founders Fund: A Strategic Investment Model for Advancing Sustainable Development Goals

Introduction: Aligning Venture Capital with Global Goals

Established in 2014 by Anu Duggal, the Female Founders Fund (FFF) operates on the foundational principle that enterprises led by women are systematically undervalued. The firm’s performance has validated this thesis, demonstrating that strategic investment in female entrepreneurs is not only a source of significant financial return but also a direct driver of progress toward key United Nations Sustainable Development Goals (SDGs). By focusing on sectors critical to sustainable development, FFF provides a compelling model for impact-oriented venture capital.

The fund’s investment philosophy directly contributes to the following SDGs:

• SDG 5: Gender Equality: By exclusively funding women-led businesses, FFF actively works to end discrimination and empower women, ensuring their full and effective participation in economic life.
• SDG 8: Decent Work and Economic Growth: The firm fosters entrepreneurship and the creation of high-value jobs, promoting inclusive and sustainable economic growth.
• SDG 10: Reduced Inequalities: FFF’s mission is to reduce economic inequality by providing capital and support to a historically underfunded demographic.

Strategic Investment Focus and SDG Impact

FFF has refined its investment strategy to target industries where it can generate maximum value and contribute meaningfully to sustainable development. This data-driven approach, based on historical portfolio analysis, has led to a focus on health care, personal care, climate technology, and vertical software.

Health and Well-being (SDG 3)

A significant portion of FFF’s portfolio addresses SDG 3: Good Health and Well-being. The firm invests in companies that are innovating to ensure healthy lives and promote well-being for all.

• Maven Clinic: A virtual health care provider valued at $1.7 billion, Maven expands access to quality health services, particularly for women and families, aligning directly with SDG 3 targets for universal health coverage.
• Real: This mental health application provides accessible support for diverse communities, contributing to the promotion of mental health and well-being as a critical component of SDG 3.

Climate Action and Sustainable Innovation (SDG 7, 9, 11, 13)

FFF’s investments in climate technology underscore its commitment to environmental sustainability and innovation.

1. SDG 13 (Climate Action): By backing companies like Dacora, a luxury electric car manufacturer, FFF supports the transition away from fossil fuels and helps combat climate change.
2. SDG 7 (Affordable and Clean Energy): Investment in electric vehicle technology promotes the adoption of clean energy in the transport sector.
3. SDG 9 (Industry, Innovation, and Infrastructure): The fund encourages groundbreaking technological innovation and supports the development of resilient and sustainable infrastructure.
4. SDG 11 (Sustainable Cities and Communities): The adoption of electric vehicles is crucial for creating sustainable transport systems in urban environments.

Financial Inclusion and Economic Growth (SDG 1, 8, 10)

The firm supports ventures that broaden access to essential services, thereby reducing poverty and inequality.

• Tala: As a global financial services provider, Tala promotes financial inclusion for underserved populations. This work is central to SDG 1 (No Poverty) by providing pathways to economic stability and SDG 10 (Reduced Inequalities) by democratizing access to financial tools.
• BentoBox: By identifying and serving the specific needs of restaurants, founder Krystle Mobayeni created a company that supported small and medium-sized enterprises (SMEs), a key driver for SDG 8 (Decent Work and Economic Growth).

Fostering an Inclusive and Sustainable Entrepreneurial Ecosystem

Driving Systemic Change in Venture Capital

The success of FFF and its portfolio companies challenges the traditional biases within the venture capital industry. The increasing presence of female partners at venture funds, as noted by Duggal, is a positive sign of progress toward SDG 5 (Gender Equality). These partners are often more willing to invest in previously overlooked markets, such as women’s health and personal care, creating a more inclusive and equitable funding landscape.

A Proven Model for Sustainable Returns

FFF’s strategy of investing in founders who possess deep, personal connections to the problems they are solving has proven highly effective. This approach not only yields successful financial exits, as seen with Billie and BentoBox, but also ensures that the resulting innovations are targeted and impactful, contributing to SDG 9 (Industry, Innovation, and Infrastructure).

By demonstrating that women-led businesses represent a significant, undervalued opportunity, Female Founders Fund has established a powerful, replicable model. The firm’s disciplined, non-conformist strategy proves that prioritizing gender equality and investing in sustainable sectors can generate superior returns while making substantial contributions to the United Nations Sustainable Development Goals.

Analysis of the Article in Relation to Sustainable Development Goals

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 3: Good Health and Well-being
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 13: Climate Action

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 5: Gender Equality

   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership in economic life. The article focuses on the Female Founders Fund (FFF), a firm dedicated to investing in women-owned businesses. It highlights the success of female founders and notes progress in diversifying venture capital, stating, “You have more female partners at venture funds who are willing to think outside of the box and invest in opportunities… where you didn’t necessarily have that five or 10 years ago.” This directly addresses increasing women’s leadership and participation in the economy.
   • Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to financial services. FFF’s core mission is to provide venture capital to female entrepreneurs, who are historically underfunded. The article explains that Anu Duggal started the firm on the “premise that women-owned businesses are undervalued” and details how it took her “700 meetings to raise $5.85 million to launch her firm,” demonstrating the challenge and the firm’s role in improving women’s access to financial resources.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article showcases how FFF’s investments lead to significant economic value. It provides examples of high-growth companies like “Maven, a virtual health care and benefits provider valued at $1.7 billion,” and “Tala, a global financial services provider with annualized revenue of $300 million.” This demonstrates the promotion of economic productivity through innovation in technology and services.
   • Target 8.3: Promote development-oriented policies that support productive activities, entrepreneurship, creativity and innovation, and encourage the growth of micro-, small- and medium-sized enterprises, including through access to financial services. FFF directly supports this target by “investing in six to eight businesses per year” and providing seed-stage funding to startups. The article highlights how FFF helped founders like Krystle Mobayeni of BentoBox and Georgina Gooley of Billie “reach their successful exits,” fostering entrepreneurship and the growth of small enterprises.

3. SDG 3: Good Health and Well-being

   • Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services. The article states that FFF has a “focus on health care, personal care.” It mentions investments in “Maven, a virtual health care and benefits provider” and “Real, a mental health app for diverse communities.” By funding these companies, FFF contributes to increasing access to essential health and mental health services through innovative platforms.

4. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.3: Increase the access of small-scale industrial and other enterprises to financial services, including affordable credit, and their integration into value chains and markets. FFF’s model of providing venture capital to seed-stage companies is a direct application of this target. The article describes how FFF provides crucial early-stage funding that allows innovative startups to grow and achieve “successful exits,” such as Billie’s sale for “$310 million in 2021.”
   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors, and encourage innovation. The article emphasizes FFF’s focus on “climate tech industries as well as vertical software” and its investment in “groundbreaking technology companies.” The mention of Dacora, a “luxury electric car company founded by Kristie D’Ambrosio-Correll, an MIT grad,” exemplifies the fund’s role in encouraging innovation and upgrading technological capabilities.

5. SDG 13: Climate Action

   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation. The article explicitly mentions that FFF has refined its approach to include a “focus on… climate tech industries.” By investing in companies like “Dacora, a luxury electric car company,” the fund supports the development and growth of technologies that contribute to climate change mitigation, thereby increasing institutional capacity in this sector.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. SDG 5: Gender Equality

   • Proportion of women in leadership/entrepreneurial roles: The article implies this by citing the existence of numerous female founders (Kristie D’Ambrosio-Correll, Krystle Mobayeni, Georgina Gooley) and noting there are “more female partners at venture funds.”
   • Number of women-owned businesses receiving funding: The article provides a direct indicator: FFF invests in “six to eight businesses per year.”
   • Amount of capital raised for/by women: The article mentions FFF raised “$5.85 million to launch her firm,” indicating the flow of capital towards women-led investment initiatives.

2. SDG 8: Decent Work and Economic Growth

   • Valuation and revenue of funded companies: The article provides concrete financial indicators of economic growth, such as “Maven, a virtual health care and benefits provider valued at $1.7 billion,” “Tala, a global financial services provider with annualized revenue of $300 million,” and the sale of Billie for “$310 million.”
   • Number of new enterprises created/funded: The article states FFF invests in “six to eight businesses per year,” which serves as an indicator for the creation and support of new enterprises.

3. SDG 3: Good Health and Well-being

   • Number of health-tech companies funded: The article identifies specific investments in the health sector, including “Maven” and “Real,” which can be counted as an indicator of progress in promoting health innovation.
   • Valuation of health-tech companies: The valuation of Maven at “$1.7 billion” implies a significant scale of operations and impact on providing access to healthcare services.

4. SDG 9: Industry, Innovation, and Infrastructure

   • Amount of investment in innovative sectors: The article mentions FFF’s focus on “health care, personal care and climate tech industries as well as vertical software,” and the funding of companies in these areas is a direct indicator.
   • Number of technology companies funded: The investment in “groundbreaking technology companies” like Dacora serves as a qualitative and quantitative indicator of support for innovation.

5. SDG 13: Climate Action

   • Number of investments in climate-related technology: The article’s specific mention of FFF’s “focus on… climate tech industries” and its investment in “Dacora, a luxury electric car company,” serves as a direct indicator of financial resources being allocated to climate solutions.

4. Table of SDGs, Targets, and Indicators

Source: newsweek.com