10 Years, 10 Learnings from Building FFF by Anu Duggal
In 2012, I set out with a goal: to raise a fund that would back the female founders building the companies of tomorrow.
When I first started Female Founders Fund, the odds were against me as a first time fund manager with no real track record, investing with a strategy that many considered largely unproven. But I saw the potential for untapped talent — female founders who were being overlooked despite their unique experience and insights.
Breaking into venture capital is no small feat, and the challenges only grew with each subsequent fund. According to PitchBook data, only 20–25% of venture capital funds succeed in raising a fourth fund, and according to a study by Sapphire Ventures, the odds for emerging managers are even lower at 17%.
Fast forward to 2025, having invested in over 75 companies across industries like healthcare, software, beauty & personal care, hardware, and e-commerce, I’ve learned some meaningful lessons. As we enter our second decade of investing in female founders, here are my top ten takeaways from building a firm & investing across the last ten years.
1. Networks Are Great for Deal Flow, But Don’t Overlook Cold Emails
One of the most common beliefs when we started ten years ago was that the quality of an introduction could make or break a deal — who connected you and how well they knew each other mattered. And sure, we all love a warm intro, but here’s the reality: some of our best deals have come from cold outreach — completely unsolicited emails that showed up in our inboxes or on LinkedIn.
Consider Co-Star, the leading astrology app now founded by Banu Guler, backed by Spark Capital and Maveron, with over 30 million organic users. Co-Star came to us through a cold email, not through a warm connection. Deals like this didn’t come wrapped in glowing recommendations from our closest contacts. Instead, they came from founders who understood how to cut through the noise and craft thoughtful, compelling pitches.
What makes emails stand out isn’t just the vision of the companies but also the tenacity and clarity with which they are presented. Cold outreach takes boldness. A founder who takes the initiative to reach out directly, often against the odds, is demonstrating a quality crucial for success — resilience. The ability to hustle, combined with a clear articulation of their idea, is a potent combination.
The takeaway? Refresh that inbox. Sometimes the most valuable deals are waiting in the cold emails you might have overlooked. It’s not always the introduction that makes the difference; sometimes, it’s the grit and determination behind the email that can surprise you.
2. Take a Contrarian Approach to Investing
A widely accepted belief in venture capital is that having multiple term sheets and a competitive deal dynamic signals future success. But at seed stage, you’re often investing in a founder or team with very little data to back their thesis. At Female Founders Fund, we’ve frequently taken a contrarian approach, willing to back founders without the signaling that often comes from multiple term sheets or a competitive deal process. Instead, our conviction comes from a specific point of view of a visionary founder building a transformative business, even when traditional signals are absent.
Take women’s healthcare, for example. Ten years ago, the category barely existed as a recognized investment space. But when we met Kate Ryder, we saw how her vision for putting the patient first could completely transform healthcare. Today, Maven Clinic is valued at $1.75 billion. Similarly, in the consumer category, when we met Georgina Gooley, we saw how her brand vision and storytelling would resonate with a female consumer that had long been ignored by the market. Billie was acquired by Edgewell in 2021.
These bets paid off. By trusting our instincts and investing in ideas that weren’t yet widely accepted, we were able to capitalize on major market shifts.
The takeaway? The true contrarian approach wasn’t just going against the grain — it was recognizing that these founders, with their fresh eyes and unique perspectives, were seeing the industry in ways others weren’t. With Kate, we weren’t just betting on her as a founder but also on her vision to put the patient first in women’s healthcare. With Georgina, we believed in her brand vision and her ability to connect with a female audience that had been overlooked for years. In both cases, the combination of a compelling founder and a market ripe for disruption was so strong that we were willing to take the risk and bet on these companies pre-launch.
3. First-Time Founders Can Become Category Leaders
Conventional wisdom says second-time founders are a safer bet — they’ve done it before, so they know the ropes. But some of our biggest wins have come from first-time founders who brought fresh perspectives and bold visions.
Take Shivani Siroya, founder of Tala, as an example. Despite being a first-time founder, Shivani has built a global company with over 600 employees, reshaping financial services in emerging markets. Another example is Krystle Mobayeni, founder of BentoBox, who transformed restaurant management software with her first startup. Both founders took innovative approaches and built significant companies despite being first-timers.
While second-time founders are often seen as a safer bet, don’t assume they’re always a sure thing. Experience can sometimes lead to caution, while first-time founders may take the bold leaps that drive true innovation. Betting on them has been a cornerstone of our success.
The takeaway? First-time founders bring fresh perspectives and are willing to challenge norms in ways that can lead to breakthroughs. Betting on them might seem risky, but it’s often where we’ve seen the most unexpected and successful outcomes.
4. Entry Price Matters for Returns
Venture math can be unforgiving, and entry price is often overlooked — especially at seed stage. For a smaller seed fund, even a modest difference in valuation can significantly impact returns. Take the difference between a $5 million pre-money valuation and a $10 million pre-money valuation.
For simplicity’s sake, let’s say you invest $1 million at either valuation, assuming 50% dilution by the time of exit. At a $500 million exit:
- $5 million pre-money: You’d end up with 8.33% ownership, returning $41.65 million — almost enough to return a $50 million fund.
- $10 million pre-money: You’d own 4.545%, returning $22.725 million — just under half the fund.
The takeaway? While this point may be somewhat controversial, particularly for larger funds, we’ve found that for smaller seed funds, entry price really matters. A disciplined approach to valuation, especially for mid-market exits, can make the difference between a good outcome and a great one.
5. Mid-Market Acquisitions Are Worth Celebrating
While everyone dreams of billion-dollar exits and IPOs, the reality is that most companies won’t go public. In fact, 90% of liquidity events come from mergers and acquisitions (M&A), not IPOs. And while the spotlight is often on those billion-dollar deals, mid-market acquisitions can quietly drive significant returns, especially for smaller funds.
Take ELOQUII, which was acquired by Walmart under CEO Mariah Chase’s leadership. While not a unicorn exit, it was a meaningful acquisition that generated strong returns for us. Deals like this may not grab headlines, but they deliver the liquidity that keeps a fund thriving.
The reality is, cash is cash, and mid-market deals often provide faster, more reliable returns than the long, uncertain road to an IPO. For many companies, these acquisitions are not only a realistic outcome but a valuable one that can make or break a fund’s overall performance.
The takeaway? Mid-market acquisitions are not just a fallback — they can be a key driver of fund success. While chasing unicorns is exciting, it’s the strategic mid-market deals that often return meaningful capital to investors, and they should be valued as such. Ignoring them could mean leaving substantial value on the table.
6. You Still Need a Home Run Within Your Portfolio
While mid-market acquisitions and smaller exits provide steady returns, every fund still needs one big win to hit the target returns, typically 3x net or higher. This is especially true for smaller funds, where a single home run can make all the difference in the overall performance.
We’ve seen how one high-growth, high-return investment like Maven Clinic can propel a fund toward exceeding its targets. Without that unicorn or significant exit, even a well-managed fund might struggle to hit those 3x+ returns that LPs expect.
It’s easy to get caught up in the value of smaller, more frequent exits, but the big win is non-negotiable if you want to deliver truly exceptional results.
The takeaway? No matter how well-balanced your portfolio is, you still need at least one home run to achieve the returns that LPs are looking for. It’s that single, breakout success that will ultimately drive the fund’s overall performance and help you stand out as a top-performing fund manager.
7. Fund Theses Shouldn’t Stay Static
A fund thesis isn’t static — it needs to evolve with the markets. As an investor, your job is to keep your finger on the pulse and anticipate where the world is moving, not just react to what’s happening now.
We started out ten years ago investing in categories like direct-to-consumer and marketplaces. Fast forward to today, we are in a different place — backing female founders building planes and cars, like the stealth automotive company built by Kristie D’Ambrosio-Correll and aerospace company Beyond Aero led by Eloa Guillotin. Our ability to evolve our thesis has allowed us to capture these groundbreaking opportunities.
As Oprah Winfrey said, “Luck is a matter of preparation meeting opportunity.” In venture capital, being prepared means evolving your thesis to capture new possibilities. Like founders, your ability to be flexible and adapt is crucial to staying competitive.
The takeaway? The technology industry is ever-changing, your fund thesis must evolve with innovation. Keeping your finger on the pulse ensures you’re ready to back the next big innovation.
8. Scaling? Think Ecosystem, Not Just AUM
Starting out with a $5.85M Fund I, it was clear that we could not compete on AUM. Instead the focus was on building a brand and community that would enable us to access the top female founders at the seed stage.
For us, community isn’t just a buzzword; it’s a strategic advantage that has enabled us to access high quality proprietary deal-flow through a truly differentiated network.
Early on, our first hire was a head of community — unlike most funds that prioritize financial roles. People often ask why, but over time it has become clear that our strategy of investing in community has paid off in spades. Through tentpole events like Camp FFF and our CEO Summit, we created a network that has been invaluable to the fund’s success leading to introductions to some of our best performing companies.
By bringing together female founders, we built a supportive environment that fostered growth and collaboration while building our brand in the female founder ecosystem. This emphasis on community has elevated our presence beyond what our AUM alone could achieve.
A few examples include Allison Conrad at Arey Grey who attended Camp, spent time with our ecosystem of beauty founders, and by the end, signed our term sheet. Similarly, Kristie D’Ambrosio-Correll connected with us through our network of founders and investors at our CEO Summit — relationships that wouldn’t have happened without our community approach.
The strength of our ecosystem has created a flywheel effect — founders helping founders, investors connecting us to deals, and a network that amplifies itself. This approach has fueled some of our best-performing investments.
The takeaway? Scaling doesn’t have to just be about increasing assets under management; it can also be about creating an ecosystem where your network drives deal flow and success.
9. Early Stage Investing is a Waiting Game — Play the Long Game
Venture capital requires patience and strategic thinking — especially at the seed stage. It’s easy to get caught up in short-term wins, but the real returns often take years, sometimes even a decade, to materialize.
Take our investment in Maven Clinic. Ten years ago, Maven was a contrarian bet in women’s healthcare, a category that was barely recognized at the time. We backed the founder’s bold vision, and now, a decade later, Maven is valued at $1.75 billion. It took time, resilience, and the ability to play the long game, but the outcome was transformative.
Seed investments are truly like planting seeds — you nurture them for years before seeing the full value. Often, the companies that deliver the highest returns require the most patience, and they might take years to scale, especially through market shifts.
The takeaway? Venture capital is not for the impatient. Playing the long game and staying committed through the ups and downs is key to unlocking the biggest wins — just like we did with Maven.
10. In VC, Reputation and Relationships Are Everything
In venture capital, it’s not just about the deals you make — it’s about the relationships you build and the reputation you create. The strength of your network and how you treat people, especially during tough times, can have a lasting impact.
One of our core values is sticking with founders through the highs and the lows. For example, this year, when one of our companies struggled, we pushed back at the board level to support the founder, advocating for a solution that prioritized their long-term success versus an inconsequential outcome for investors. That loyalty didn’t just help the company; it reinforced our reputation in the ecosystem. Founders remember who had their back when times got tough, and those relationships often lead to future opportunities.
In fact, one of our smaller exits — a founder’s aqui-hire — ended up leading to a pivotal introduction. That founder later connected us to another founder building a company that returned over 50% of our second fund. Empathy and integrity matter, because the way you treat founders and other investors will ultimately determine your deal flow and long-term success.
The takeaway? In VC, your reputation and relationships are your most valuable assets. It’s a long-term game where empathy and trust will open doors — and keep them open.
Conclusion: The Future is Bold — and Female
As we start our eleventh year, and look ahead to the next decade, one thing is clear: backing female founders isn’t just a feel-good story — it’s good business. The companies we’ve invested in are transforming industries, breaking barriers, and creating meaningful impact.
From women building planes and cars to pioneers in healthcare and beauty, the founders we support are leading the way in reshaping what the future looks like. Our experience has taught us that being adaptable, building strong relationships, and playing the long game are crucial elements to success in venture capital.
The future is diverse, it’s bold, and it’s driven by female founders who are redefining industries and building the companies of tomorrow.
