“compete to succeed: investing in women-led startups.” women in stem summit, june 8, 2016
TRANSCRIPT
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Investing in Women-Led StartupsDeborah Weinswig
Managing [email protected]
US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016
June 8, 2016
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AgendaABOUT US
OVERVIEW
DRIVERS FOR WOMEN-LED STARTUPS
CHALLENGES FOR WOMEN-LED STARTUPS
CASE STUDY: CHINA
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About Fung Group
TRADING
LOGISTICS
DISTRIBUTION
RETAILING
Li & Fung LimitedListed on SEHK
Global Brands Group
Listed on SEHK
Fung Retailing Limited
Privately Held Entity
Convenience Retail
Asia LimitedListed on SEHKTrinity LimitedListed on SEHK
Branded Lifestyle Holdings Limited
LiFung Kids (Holdings) LimitedToyrs “R” Us (Asia)Suhyang Networks
UCCAL Fashion GroupPrivately Held Entities
Fung Holdings (1937) Ltd. A privately held entity and major shareholder of the Fung Group
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About Fung Global
• Fung Global Retail & Technology advises retailers, real estate developers and tech companies on projects situated at the intersection of retail, tech and/or fashion.
• Our team offers a robust knowledge bank and significant experience in the retail, fashion and tech fields. We are involved in many areas of the business and believe this allows us to offer a unique perspective by focusing on the future and where the sector is heading.
A Unique Combination of Retail, Fashion & Tech
RETAIL FASHION
TECH
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OverviewABOUT US
OVERVIEW
DRIVERS FOR WOMEN-LED STARTUPS
CHALLENGES FOR WOMEN-LED STARTUPS
CASE STUDY: CHINA
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Global Overview & Regional Comparison
• Higher women early stage entrepreneurship rates in developing economies
• Lower early stage entrepreneurship rates in developed countries
• Asia has a high concentration of female entrepreneurship
• In North America, female TEA rate is only 11%
Region Female TEA Rate
Male TEA Rate
F/M Ratio
Africa 25 26 0.96
Asia & Oceania 14 15 0.93
Latin America& Caribbean 15 19 0.79
Europe 6 13 0.46
North America 11 16 0.69
Middle East 8 14 0.57
Europe 5 9 0.55
Total Early-stage Entrepreneurship Activity (TEA) Rate by Region and Gender (% of Total Adult Population)
Total Early-stage Entrepreneurship Activity (TEA) rate, which measures the percentage of the adult population (18 to 64 years) in the process of starting a business and those who have recently started one.
Source: Babson College
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Our Accelerator Partnerships
ENTREPRENEURSROUNDTABLEACCELERATOR
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Our Accelerator PartnershipsPercentage of Women-Led Startups
ENTREPRENEURSROUNDTABLEACCELERATOR30% 100%
100% 15%
30% 30%
40% 100%
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NAME UR PRICE
SELF-CHECKOUT
EVANGELIZE THRIVE
EXPERIENTIAL RETAIL: MAKE THE STORE AN AWESOME PLACE
CUSTOMER ENGAGEMENT: HOW DO YOU CONVERT THE CONSUMER
ALL CHANNEL: The CONSUMER CAN SHOP WHEREVER + WHENEVER
REACTION COMMERCE
NEW RETAIL MODELS:HOW WILL THE CONSUMER SHOP IN THE FUTURE
Four-Quandrant Disruptors Framework
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Women & Business: General Trend
• 10 M+ US business owned by women entrepreneurs: the highest rate of women founders than anywhere else
• 19.2% board seat in S&P 500 companies versus 11.7% in 2000 (Catalyst.org)
2014 S&P 500 Board Seats Held By Women
Source: Catalyst.org
x
19.2%Women
88.8%Men
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Women In The Tech SectorTech Leadership Roles Held by Women
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Women In The Tech Sector: Global
Source:
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage of Global Employees by Gender
% Male
% Female
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Women-Led Startups: General Trend
15%Of the companies receiving venture
capital had a woman on the executive
team
5.6%Of firms with women
decision-makers raised more than $100M since 2009
3%Of total venture capital
goes to companies with women CEOs
($1.5B out of $50.8B between 2011-13)
9%Of total seed stage
investments are given to companies
with women entrepreneurs
13%Of total early stage
investments are given to companies
with women entrepreneurs
86%Of venture-funded businesses have zero women in management
positions
Source: Womenwhotech.com
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Women-Led Startup VC Funding
0
500
1000
1500
2000
2500
3000
3500
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
117209342486523555
1100
150020002200
25002450
9.5%11.7%
14.3%
17.4%16.8%17.9%
U.S. Venture Funded Companies by Founder GenderFirst Funding Round for U.S. Based Companies w/ Founder in CrunchBase
Source:Crunchbase
# of Funded Companies [by First Funding Round Recorded]
% of Total Companies w/ Female Founder
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Drivers1. INSTITUTIONAL AND ORGANIZATIONAL
2.THOUGHT LEADERSHIP
3.GLOBAL WOMEN ENTREPRENEURSHIP EVENTS
4. INCREASING VC FUNDING
5. IMPROVED ANGEL INVESTMENT
6.EMERGING CROWDFUNDING FOR WOMEN
7.BETTER ROE FROM WOMEN-LED BUSINESSES
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1: Institutional and OrganizationalFunding Institutions and Organizations
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2: Thought Leadership
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3: Global Women Entrepreneurship Events
Alibaba“Global Conference on Women
and Entrepreneurship”
Women Who Tech“Women Startup Challenge”
Fung Global“Breakfast with Disruptors: Women-Led Startups with a
Focus on Beauty and Fashion”
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4: Increasing VC Funding
• In 2013, 18% of venture capital deals went to women-led companies, while only 5% of women-led companies received funding in 1999 by US VC funds
• Female-founded companies received the largest investments
• Retail (43%) • Media (17%) • Software(6%)
Source: Pitchbook
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
8%10% 10% 10% 11%
12%
16% 16% 17% 18%
Percentage of Global VC Deals Investing in Companies With Female Founder
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5: Improved Angel Investment
• In 2014, there were 82,633 women angel investors in the US an increase from 57,967 in 2013
• This figure has grown by over 7x since 2004, when there were 11,250 women angel investors
• In 2014, women angels represented 26.1% of the angel market, a significant increase from 19.4% in 2013
• Angel investment is a long-term, relational process where investors play an important role in company development which attracts more female investors
• There has been a rise in the number of women-only angel networks
Source: AngelList
Developer Tools
Entreprise Software
Fashion
Organic Food
Women Focused
4%
8%
11%
14%
22%
Percentage of Women Investors by Market as of 2014
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6: Emerging Crowdfunding For Women
Equity-Based Crowdfunding• The overall success rate was 20% while
women-led companies had a 23% success rate
• On average, women-led companies raised $422,370 versus $405,295 overall
Reward-Based Crowdfunding• Women had a 70% success rate versus
61% for men in reaching their goals on Kickstarter
• Women-owned technology companies have a 65% success rate compared to a 30% success rate for male-owned technology companies
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6: Emerging Crowdfunding For Women
Plum Alley is crowdfunding for women by women,
founded by Deborah Jackson.
Indiegogo, with Danae Ringelmann as one of its
founding members, reported that 42% of its crowdfunding
campaigns are run by women.
Crowdfunder has Rita Ravindra as its Chief Operations Officer.
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7: Better ROE From Women-Led Businesses
• Women-led private technology companies are more capital-efficient, achieving 35% higher return on investment
• Women-led venture-backed companies are bringing in 12% higher revenue than male-owned tech companies (Kauffman Foundation)
• 80 women CEOs produced equity returns 226% better than the S&P 500 from 2002 to 2014 (Quantopian)
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Challenges1.UNDERREPRESENTATION IN STEM JOBS
2.PERCEPTION OF WOMEN’S LACK OF ENTREPRENEURIAL SPIRIT
3.PERSONAL EXAMPLES
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1: Underrepresentation In STEM Jobs
• Women’s share of STEM degrees remained largely unchanged between 2004 and 2014
• 15% of women finding a job in a STEM profession versus 31% for men
• The average male make $91,000 compared to $75,000 for a woman
• Women hold 57% of jobs in the workforce vs 25% in computing technology
50%57% 60%
Women’s Share of STEM Degrees by Degree Level
FemaleMale
2004 | 2014 2004 | 20142004 | 2014Bachelor’s Degree | Master’s Degree | Doctoral Degree
Source: Golden Seeds, WhoIsHostingThis
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2: Perception Of Women’s Lack Of Entrepreneurial Spirit
• Women reported lower perceived opportunities, higher fear of failure, lower perceived capabilities, and knowing fewer entrepreneurs than men
18-24 25-34 35-44 45-54 55-64 65+0%
5%
10%
15%
20%
25%Entrepreneurial Rates for Males and Females
Male Female18-24 25-34 35-44 45-54 55-64 65+0%
5%
10%
15%
20%
25%
30%Entrepreneurial Intentions for Males and Females
Male FemaleSource: GoldenSeeds
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3: Personal Examples
Kelsey ConophyFounder & CEO
WorkZeit
Fang ChengCEOLinc
Wendy ChenCEO
Omnistream Co
Sue WelchCEO
Bamboo Rose
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Case Study: China
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Case Study: China
Saudi ArabiaIndiaItaly
South AfricaAgentina
FranceIndonesiaGermany
USUK
RussiaBrazilJapan
AustraliaCanada
China
0% 10% 20% 30% 40% 50% 60% 70%
Source: WorldBank
Labor Force Participation Rate by Country in 2014
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Case Study: China
• Venture capital is the top funding source for Chinese startups
U.S. U.K. China9% 13% 16%
11%16% 4%
42%40%
38%
38%31%
42%
Private Equity
Angel/Micro VC
Venture Capital2
Other Sources
% Breakdown by Fund Sources
Source: Silicon Valley Bank
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Case Study: China
• Chinese startups have more women in leadership
Source: Silicon Valley Bank
% Companies Having at Least One Woman CEO
US
UK
CHINA
x
x
x
54%
53%
79%
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Case Study: China
Key Stats of Female Entrepreneurs in China• Average Age: 47• Education-Level: 36.8% have
bachelor’s degrees and 12.7% have graduate degrees
• Company Size: 66.8% small; 26% medium enterprises; 7.2% large
Finance2%
IT2%
Profes-sional
Services4%
Enter-tainment
6%
Education8%
Medical Services
11%Lodging/Tourism/
Restaurant 15%
Fashion25%
Toys and Baby Care
27%
Women-led Startups in China by Sector
Source: AliResearch
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Case Study: ChinaPopular Women-Led Startups
Liu QingPresident of Didi Chuxing, a mobile platform taxi-calling appCompany Size: $20 Billion
Zhao KokyingCo-Founder of Uboche, a car-parking appCompany Size: $1.42 Million
Chen FengFounder of Meililai, a beauty-O2O appCompany Size: $1.53 Million
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Case Study: China
• TechBase is China’s first tech accelerator for women-led start-ups launched in 2015
• Services include business consulting, fundraising, media, talent recruitment, law, etc.
• CEO Ling Zihan: "If women fail to get deeply involved in the internet, their future economic status will be at great risk,“
• Co-hosting the 2016 “HER STARTUP” Women-led startup competition
Accelerator: TechBase
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Case Study: ChinaAccelerator: TechBase
116Entrepreneurs interviewed
20+Interviews by media home and abroad
14Startups incubated
14Online and offline
events hosted
400+
Women entrepreneurs
connected
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Case Study: China
• SOSV is a $235 million USD venture capital fund founded by technology visionary Sean O’Sullivan in 1993
• China Accelerator is Asia's first mentorship-driven seed funding program since 2009
• The program runs 2x per year in Shanghai• By today, 76 startups have participated• 28 / 76 startups had at least one female
founder = 37%• In the last 3 cohorts, 17 / 32 companies
had at least one female founder = 52% female-founded
• 12 / 32 companies had a female CEO = 38% female CEOs
Accelerator: SOSV’s ChinaAccelerator
Female-Led Startups in 2014 Cohort:
CEO, Lu Guo CEO, Miranda Tan
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Thank You!Deborah Weinswig
Managing [email protected]
US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016
June 8, 2016