6 Colorado VCs on how they're moving the needle on gender diversity

by April Bohnert
October 18, 2017

 

In part one of this two-part series on women who are closing the gender gap in startup investing, we talked to four VCs about what they look for in an investment and the unique perspectives they bring to the table.

In part two, we turn the lens on the issue of gender diversity, examining the misconceptions that are held about women in venture capital and hearing some powerful advice for women — and men — interested in launching a career in investment.

 

 

Nicole Glaros has been instrumental in growing the tech and startup ecosystem in Colorado. After co-founding a tech startup while earning her master at the University of Florida, Glaros joined CTEK — an incubator that supported Colorado startups long before the accelerator boom — and helped grow it from one to five offices throughout the state. She’s currently the chief innovation officer for renowned startup accelerator and venture fund Techstars, where she’s been since the early days.

What's a misconception the tech industry holds about women VCs? How do you overcome that?

There are probably many misconceptions, but I don't focus on them. I don't want to spend my time focusing on other people's beliefs, which isn't something I can readily change. Rather, I want to focus on being great at what I do. I want to work with great founders working on interesting businesses, helping them to attain success faster, with greater returns, while improving themselves along the way. If I focus on that and am successful at it, then misconceptions quickly fall away.

What's the best piece of advice you would give to women entrepreneurs and women interested in becoming investors?

It's the same piece of advice I would give anyone trying to accomplish anything: Paint the picture of what you want clearly in your mind and don't stop until you get it. Everyone has some sort of challenge to accomplish what they want. Everyone. You either don't have the education or don't have the money or don't have the connections or don't have the knowledge or don't have the experience or don't have the resources or don't have the time or don't have the gender or don't have the ethnicity or don't have the age... But thinking like that will get you absolutely nowhere. Take whatever challenge you have, embrace it, and move on.

If you want to be an entrepreneur, go be an entrepreneur. Just do it. And if you want to be an investor, then start hanging out with investors. Organize angel groups. Become an associate at a venture fund. Just don't stop until you get what you want, because it doesn't matter if you're male or female, the only thing that matters is whatever you let get in your way.

 

 

 

Kate Shillo has been working in and building venture funds for the last 10 years. She’s currently an investor at Galvanize Ventures, where she looks for innovative companies that are solving interesting problems with tech.

What's a misconception the tech industry holds about women VCs? How do you overcome that?

That it's difficult to find women in venture capital. There are certainly fewer women, but we are not hard to find. This article alone highlights several. Two female friends who are also VCs (who I've had the joy of co-investing with) have assembled a global network of several hundred women in venture capital firms. We know who we are, and we're working together to help one another. Much more work needs to be done, but we exist.

What's the best piece of advice you would give to women entrepreneurs and women interested in becoming investors?

It's essential to have a realistic understanding of the potential outcomes and an investor's responsibilities prior to making investments. Investing is a different business than being an entrepreneur. It's also a different skill set and expertise. You have to look at hundreds of companies before you'll get a sense of your gut.

Venture capital is a difficult business and traditionally an apprenticeship that can take decades to see the fruits of one's labor. It's recently glamorized, but the real work begins after the investment is made. Knowing what it takes to do the work and tow the line for years is key before you start investing.

 

 

 

Barbara Bauer is the director of Rockies Venture Club, where she heads up its Women’s Investor Network. RVC is one of the oldest VC firms in Colorado, and women-led companies comprise 50 percent of its portfolio — a number few other firms can claim. Now, Bauer’s on a mission to get more women into startup investing.

 

What's a misconception the tech industry holds about women VCs? How do you overcome that?

When I entered the tech industry — I was the only woman in my college and graduate school classes, I was the only woman in project teams. We’re getting away from that, but we’re still nowhere near where we need to be in terms of balance and inclusivity.  

I had a colleague who came to an investor meeting and was the only woman investor. Before she was introduced by the organizers, who did know what her role was, several of the men actually introduced themselves to her and said, “Oh, are you on the leadership team for one of the ventures we’re going to talk about tonight?” And she said, “No, I’m actually interested in becoming an angel investor.”

It took her saying that several times before the men in that room actually heard her. And so I think there’s an unconscious bias and stereotype. I encourage women to get into meetings with men, as soon as they’re comfortable, because it’s only when we get diversity in the room that we achieve the best results. But whenever we’re in a meeting and we see behavior like that, we need to actively call it out in a polite way — but not let it go by.

Over time, as more women get into meetings and men see us calling out inappropriate (albeit unconscious) bias, all that changes. We really just have to get more women in the room.

What's the best piece of advice you would give to women entrepreneurs and women interested in becoming investors?

The most important thing is that, for each of those situations, there comes tremendous upside potential and self-satisfaction. Any frustration that comes can be managed, and it may be as simple as finding another woman in that situation — or finding a man that’s not exhibiting that kind of bias. The upside potential and rewards of either being an entrepreneur or an angel investor are so big that all of this other stuff I want to relocate to the level of noise. There’s so much fun to be had working with these entrepreneurs and investors.

 

 

 

Elizabeth Kraus has been founding, working for and consulting for startups her entire career. She ran the tech startup MyUSearch.com for more than five years, before founding the Impact Angel Group in 2011. Today, she’s the co-founder and chief investment officer at MergeLane, which runs a venture fund, a “funderator” and a leadership camp dedicated to supporting women entrepreneurs.

What's a misconception the tech industry holds about women VCs? How do you overcome that?

To be honest, I can’t think of many misconceptions about female VCs, but there is one small thing I frequently run into. I've found some of the best venture capital networking opportunities involve skiing or golfing. I am an expert skier and my business partner is an expert golfer, but I am not sure if we are as top-of-mind as our male counterparts for these opportunities.

What's the best piece advice you would give to women entrepreneurs and women interested in becoming investors?

I find that women sometimes feel under-qualified for things they are more than capable of doing. My advice to those women is to think critically and honestly about how their strengths and weaknesses position them to invest. If they are worried about their weaknesses, I would encourage them to think about whether they have any unique perspective and/or enough sheer determination and passion to overcome those weaknesses. If they find that in themselves, take the leap. It’s scary and risky, but so are most things that are worth doing.

 

 

 

Martha Tracey is the vice president at Crawley Ventures, the VC arm of Crawley Petroleum Corporation, and serves as a board member for Crawley Petroleum Corporation, CenterStone Technologies, First Western Financial, Collective Intellect and Opera Colorado. She launched the firm’s Denver office in 1995, where she’s been a driving force behind the strategy.

What's a misconception the tech industry holds about women VCs? How do you overcome that?

For most of my career, I have worked in industries where the majority of professionals are men. I have been fortunate to work with a lot of smart, interesting people. That said, there are not very many women venture capital investors in Colorado, and I believe it would be better if there were more. Diversity of thought around the table is good for decision-making and can improve results.

What's the best piece of advice you would give to women entrepreneurs and women interested in becoming investors?  

Be authentic and be persistent. To be the most effective working with all of your constituents, try to understand where people are coming from and what motivates them.

 

 

 

Dr. Alicia Robb is the founder and CEO of Next Wave Impact. She was inspired to launch Next Wave while working as a senior fellow for the Kauffman Foundation, where she researched the gender gap in investing.

What's a misconception the tech industry holds about women VCs? How do you overcome that?

As a relatively new fund manager, I don't have a long track record. I would hope as I build my track record, I will just be seen as a good VC — not a good female VC.

What's the best piece of advice you would give to women entrepreneurs and women interested in becoming investors?

For women entrepreneurs, raising capital is hard. You will hear a lot of nos. Women often take it personally and stop asking, while men keep asking until they get the needed funding. Don't take “no” personally. Ask for feedback and change what you need to change in order to make your company investment ready.

For women investors: Join a local angel group. Don't invest in the first thing you see. Invest in what you know, and invest in what you are passionate about.

Photos via featured investors.

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