Exclusive: Female Founders fund raises a $29 million fourth fund—a milestone for emerging managers – Fortune

Report on Female Founders Fund’s Contribution to Sustainable Development Goals

Advancing Gender Equality and Economic Empowerment (SDG 5 & SDG 8)

Female Founders Fund (FFF), a venture capital firm dedicated to investing in women-led companies, has successfully closed its fourth fund. This achievement marks a significant milestone in promoting gender equality (SDG 5) within the venture capital industry, moving the concept of investing in female founders from an “emerging” to an established strategy. The fund’s progress directly supports the promotion of decent work and inclusive economic growth (SDG 8) by empowering women entrepreneurs.

• Fund IV Closure: The new fund totals $29 million, bringing the firm’s total capital under management to $140 million across five funds.
• Challenging Industry Norms: The firm’s progression to a fourth fund is a notable success, as historically fewer than 15% of fund managers achieve this, with the figure being substantially lower for solo female General Partners.
• Economic Impact: A report commissioned by FFF found that companies founded by women deliver 2.5 times more revenue per dollar invested compared to their male-founded counterparts, underscoring their vital contribution to sustainable economic growth.
• Fiduciary Responsibility: The successful return of its first fund ($5.85 million) demonstrates financial viability and responsible management, reinforcing the case for investing in women-led enterprises.

Fostering Innovation and Reducing Inequalities (SDG 9 & SDG 10)

By strategically investing in innovative, women-led startups across diverse sectors, Female Founders Fund actively contributes to building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation (SDG 9). This targeted investment approach is a direct mechanism for reducing economic inequalities (SDG 10) by providing capital to an underrepresented demographic in the startup ecosystem.

1. Portfolio Diversification: The fund’s portfolio has evolved from an initial focus on consumer startups to include technology-intensive sectors such as automotive, financial technology (Tala), and health technology (Maven), driving industry innovation.
2. Demonstrated Success: The firm has recorded three nine-figure exits, including Billie ($310 million sale to Edgewell), Eloquii (sold to Walmart), and BentoBox (sold to Fiserv). These successes validate the thesis that backing female founders yields significant returns and reduces funding inequality.
3. Ecosystem Reinforcement: The fund has invested in a repeat founder, demonstrating a full-circle ecosystem that nurtures and re-invests in female entrepreneurial talent.
4. Future Investments: The first investment from Fund IV into 831 Stories, a romance publishing business with a new model, indicates a continued commitment to supporting innovation across various industries.

Building Strategic Partnerships for the Goals (SDG 17)

Female Founders Fund exemplifies the power of multi-stakeholder partnerships (SDG 17) to achieve sustainable development objectives. The firm has cultivated a robust ecosystem that connects founders, investors, and industry leaders to strengthen the global partnership for sustainable development, with a specific focus on gender equality.

• Ecosystem Development: The fund hosts annual events and leverages its network to source deal flow, creating a collaborative environment for female founders.
• High-Impact LPs: The fourth fund attracted capital from notable women-led entities, strengthening the partnership model. Key investors include:
  • Melinda French Gates’ Pivotal Ventures
  • Olivia Walton’s Ingeborg Investments
  • The Anne Wojcicki Foundation
• Future Ambition: The firm’s stated goal for the next decade is to deploy half a billion dollars into companies founded by women, signaling a long-term commitment to scaling its impact through continued and expanded partnerships.

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

• SDG 5: Gender Equality

  The article’s central theme is the Female Founders Fund, a venture capital firm dedicated to investing in women-founded companies. This directly addresses the goal of achieving gender equality by empowering women economically and promoting their leadership in the business world. The fund’s mission is to close the gender gap in venture capital, where female founders have historically been underfunded.

• SDG 8: Decent Work and Economic Growth

  By providing capital to startups, the Female Founders Fund promotes entrepreneurship, innovation, and the growth of small and medium-sized enterprises. This contributes to creating productive employment and fostering economic growth. The article highlights the success of these companies, such as “three nine-figure exits,” which demonstrates their contribution to the economy.

• SDG 10: Reduced Inequalities

  The fund’s work directly targets the inequality of opportunity faced by women in accessing financial resources. By creating a dedicated capital pool and an ecosystem for female entrepreneurs, it aims to reduce the systemic disadvantages they encounter in the venture capital landscape, thereby promoting economic inclusion for a historically marginalized group in this sector.

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

• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.

  The Female Founders Fund directly supports this target by investing in companies led by women. This action elevates women into leadership positions (founders and CEOs) within the economic sphere, giving them decision-making power and control over their enterprises. The success of Anu Duggal as a “solo female GP” who has reached her fourth fund also exemplifies female leadership in the finance industry.

• Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over… financial services…

  The fund’s primary function is to provide women with access to venture capital, a critical financial service and economic resource. By securing funding, these female founders gain the capital necessary to build and control their own companies, thus achieving economic ownership. The article mentions the fund has raised “$140 million across five funds” specifically for this purpose.

• Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation… including through access to financial services.

  The article describes a classic example of this target in action. The Female Founders Fund provides “access to financial services” (venture capital) to “encourage… entrepreneurship, creativity and innovation” in a variety of sectors, from consumer startups and publishing to women’s health and fintech. This support helps small companies grow and create jobs.

• Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex…

  The fund’s mission is a direct effort to promote the economic inclusion of women in the startup and venture capital ecosystem. By creating a support network and providing capital, it actively works to dismantle the financial barriers that have historically excluded female founders, thereby empowering them to participate equally in the economy.

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

• Indicator: Amount of capital mobilized for women-founded companies.

  The article provides specific financial figures that serve as direct indicators of progress. These include the size of the new fund (“$29 million”), the total capital under management (“$140 million”), and the future goal (“to deploy half a billion dollars into female-founded companies”). These numbers quantify the financial resources being directed towards women entrepreneurs.

• Indicator: Number and success of women-led enterprises.

  Progress can be measured by the number of companies the fund invests in and their subsequent success. The article implies a growing portfolio by mentioning investments in diverse sectors and highlights success with metrics like “three nine-figure exits” and the fact that the fund “returned its first fund,” which demonstrates financial viability and growth of these enterprises.

• Indicator: Proportion of women in leadership and management positions.

  The very existence of the fund and the companies it backs is an indicator of women in leadership. Every company funded represents a woman in a founder/CEO role. Anu Duggal’s own success as a solo female General Partner who has raised four funds is a key data point for measuring the presence of women in senior management roles within the venture capital industry itself.

• Indicator: Economic performance of women-founded companies compared to peers.

  The article explicitly mentions a powerful comparative indicator: “A report commissioned by the fund found that female-founded companies deliver 2.5 times more revenue per dollar than male-founded peers.” This data point not only measures the success of these companies but also serves to justify the economic inclusion of female founders, directly addressing the inequality in investment.

4. SDGs, Targets and Indicators Table

Source: fortune.com