In 2005 Golden Seeds was one of just a few organizations that early on made the commitment to advance the success of women entrepreneurs. The early-stage angel investment firm was specifically founded to increase the funding for women-led startups.
After 17 years of championing the cause of women entrepreneurs, the angel group announced that they recently passed the historic milestone of providing $150 million in total funding to women-led startups and early stage companies. The angel group’s funding has helped over 200 companies led by women since its founding with numerous successful exits that includes HitFix, BoardBookIt and DonorPro.
Any entrepreneur who receives funding for their startup has achieved a great accomplishment as only a very small portion of all startups receive vc funding, approximately 3%. Disappointingly, women led startups are only a portion of that—despite studies showing that women-led funded startups outperform others.
Progress has been made. In 2004 only 3% of all companies that received startup funding were led by at least one woman that has grown significantly to 30%. However, women-led startups received just 2.3% of venture capital funding in 2020 a decrease from the upward trend detailed in a recent Harvard Business Review article.
It has also been estimated that the underfunding of women leaves at least $3 trillion out of the global economy with another Harvard Business Review study estimating that it may be as high as $5 trillion.
Having taken on this important role of funding women entrepreneurs years ago, Golden Seeds can rightfully tout the positive results that have come from their efforts. The women-led startups they funded since the organization’s founding went on to raise capital totaling over $1.5 billion. That substantial amount of follow on venture capital funding is seen as a great validator of Golden Seeds’ approach to supporting women entrepreneurs.
“Golden Seeds is one of more than 250 angel groups across the country and one of the only ones to reach such a historic milestone in raising early-stage capital. The fact that it was all for women-led companies makes it that much more remarkable,” said Pat Gouhin, CEO of the Angel Capital Association, the professional society of angel investors.
Golden Seeds is now at the very top of angel investor groups, according to Angel Resource Institute with an extensive investor network of over 300 members across the country. The firm has had approximately 1,000 investors participate in the funding of women-led startups and early-stage companies since 2005. Last year it was the second-largest angel group in terms of investment, and the third-largest in terms of numbers of companies funded.
“We’re celebrating the vision, grit, and determination of our investors who understood early the vast opportunity represented by women-led companies, as well as the women entrepreneurs who have emerged as leaders in every field, from healthcare to enterprise technology to consumer products and service, while of course recognizing there is still much work to be done,” said Loretta McCarthy, Golden Seeds Co-CEO and Managing Partner.
To gain the involvement of so many investors over the years, Golden Seeds established various programs and ways to spur active investing. Over time their efforts re-shaped angel investing and the funding of women entrepreneurs—meeting one the earliest goals set by the organization.
Golden Seeds’ members are included in due diligence teams, have promising startups brought to their attention, and are given access to training sessions, national forum meetings and syndication events. They may also attend meetings in any of the organization’s eight chapters across the U.S.: Arizona, Atlanta, Boston, Dallas, Houston, New Jersey, New York, and Silicon Valley.
Minna Song, CEO and Co-founder of MeetElise, is one of the numerous female founders who received funding from Golden Seeds who appreciates the timely support that was given her startup. MeetElise is the first company to tackle rising housing costs with AI.
“Golden Seeds has helped us every step of the way as a mentor and investor — from guiding us in who to include in funding rounds, to selecting the right partners, to welcoming us into its vast network.”
In addition to gaining the support of angel investors, women founders may apply to the Golden Seeds Venture Fund (GSVF) that works closely with the Golden Seeds Angel Network. The independently managed venture capital fund has access to the entrepreneur funding applications that are made to Golden Seeds. GSVF also leverages the Managing Partners’ professional networks, including referrals from other entrepreneurs, portfolio companies, and syndicate partners.
While Golden Seeds celebrates its history, the number of women-focused vc firms is growing that includes Chloe Capital, Female Founders Fund, SoGal Ventures and others that are building on the foundation the angel group fought so hard to build. They all help to keep momentum going for the funding of women led startups that will eventually lead to reaching the paramount goal of gender parity in entrepreneurship.
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