There are many trends in the venture capital world. The investors have just closed on $35 million in capital for their second fund after raising $19.1 million for their first fund.
Brand and Rupp are used to beating the odds in an environment where women make up just 2.5% of partners at venture firms. They invest exclusively in seed-stage startups led by women, which they define as having at least one woman with "signifcant decision-making power" on the founding or executive team.
Less than 2% of venture capital funding went to all-female founding teams last year, marking the lowest amount in five years. BrainCheck is one of the companies in True Wealth's portfolio.
The largest fund ever raised with an explicit gender diversity strategy was raised by us. When we had that kind of organic press about the fact that we are writing checks to women entrepreneurs, we just had a firehose of incoming deal flow that lasted for years.
In addition to its focus on women-led companies, True Wealth Venture also invests in companies it believes are making a positive impact on health or the environment. All of the companies it has invested in are still operational, no small feat for a group of early-stage startups that have had to weather a global pandemic.
After making 12 out of the first fund, Brand and Rupp will stick to the same investment strategy for their second fund.
Their plan to write larger checks this time around is a key difference with this new fund, they said.
We would like to be able to write up to a million dollars per first check, because we usually lead the deals, take a board seat, and take a big role. Brand said that they have a relatively concentrated portfolio.
Since Fund II's first close in May of last year, it has invested in three companies: Aeromutable, De Oro Devices, and Flourish. Two of the co-founding companies are Black, two are LatinX and one is Native American, they said.
An associate who will start next month will be True Wealth's first full-time employee. They said that the team uses its network of venture fellows and interns to help with their research.
They found a secondary mission in educating women limited partners who make decisions on behalf of family offices and foundations on how to invest in venture capital. The funds have a lot of women in them.
The vast majority of the women surveyed had never invested in a venture capital fund before, and the vast majority had never been invited to invest in a venture fund before. The lack of women in VC funds making investment decisions and the lack of women entrepreneurs getting VC dollars seem obvious. This is a very male dominated environment.
The firm hosts educational events to educateLPs about venture capital's risk profile, capital costs and structure, as well as to introduce them to their portfolio founders.
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