Leading VC Firm Hires First Woman General Partner to Invest in Crypto

Venture capital firm Andreessen Horowitz is starting a $300 million fund in crypto and blockchain—headed by Katie Haun, the company’s first woman general partner.

Haun is a former prosecutor with the US Department of Justice, and will lead the effort with investor, entrepreneur, and Andreessen Horowitz general partner Chris Dixon, a longtime crypto enthusiast.

The firm plans to invest in companies at all stages to spread out the investment, and will bet on blockchain; counting on its rising popularity for a long-term investment. The firm has funded big hitters like leading bitcoin exchange Coinase, and is now focusing more on foundation-layer protocols. They have been investing in blockchain since 2013.

Haun is excited to invest in applications that help people manage their personal data, aiming to “give power back to individuals.”

Click through to read more about Haun and the firm’s plans to invest in crypto and blockchain.

By Melia Robinson

As the price of bitcoin slips to a 2018 low, top Silicon Valley venture firm Andreessen Horowitz shows it's not backing down with the launch of a $300 million venture fund, called a16z crypto, which will invest in cryptocurrency companies and protocols.

Leading the effort alongside partner and crypto fanatic Chris Dixon is Katie Haun, a former prosecutor who helped bring down corrupt agents on the Silk Road task force, as well as the head of BTC-E, a digital currency exchange popular with criminals.

Haun is the first-ever female general partner at Andreessen Horowitz.

The new crypto fund will invest in companies and protocols at all stages, from seed-stage pre-launch projects to fully developed later-stage networks like bitcoin and Ethereum. The firm said it plans to hold investments for over 10 years, which means it cares a lot less about the day-to-day fluctuations in price than about building long-term platforms and infrastructure that it hopes will serve billions of people someday.

The plan is to invest consistently over time, even in the event of another "crypto winter." Bitcoin fell below $6,000 on Sunday, reaching a new low for the year.

"We've been investing in crypto assets for five-plus years. We've never sold any of those investments, and don't plan to anytime soon," Dixon said in a statement.

Image credit: Andreessen Horowitz

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Melinda Gates Says VC Firms Are ‘Leaving Money on the Table’ by Not Investing in Women-Led Businesses

Melinda Gates spoke to Fortune this week about her entrance into the world of venture capital—and why investing in women-led and minority-focused venture firms is not only the right thing to do ethically, but the smart move financially. This summary by GeekWire focuses on Gates’ dedication to investing in the future and in opportunities—for women, minorities, and investors. Click through to read the full GeekWire article, and find the Fortune interview here.

By Taylor Soper

Traditional venture capital firms are missing out on returns by overlooking women-led startups.

That’s according to Melinda Gates, who spoke to Fortune this week about why she’s investing in women and minority-led businesses.

Gates, co-chair of The Bill & Melinda Gates Foundation and founder of Seattle-based investment firm Pivotal Ventures, is putting money behind various funds like Aspect Ventures and Female Founders Fund that index for women and minority entrepreneurs. She told Fortune that big, longstanding VC firms are “leaving money on the table.”

“If they’re not seeing the latest innovative, disruptive technology because they don’t understand it or they don’t understand some things that women are spending money on, I think they’re not making great investments,” she said. “They’ll start to wake up over time, and there are some opportunities there.”

I can’t wait to see how a more diverse group of entrepreneurs will shape tomorrow’s innovations—from the products we build to the problems we decide to tackle. Thanks to @polina_marinova and @FortuneMagazine for a great conversation. https://t.co/ki9fGOzSeQ

— Melinda Gates (@melindagates) May 30, 2018

Gates, a long-time champion of creating opportunities for women and minorities in technology, vouched for more women on company boards. She also hopes  investors hold their portfolio companies accountable for prioritizing “diversity, the right values, and the right behavior.” You can read the full Fortune interview here.

Image credit: GeekWire Photo / Kevin Lisota

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How More Women Are Stepping Up To Fund Women Entrepreneurs In 2018

We love to see women truly investing in women, and this article from Forbes makes a case that 2018 can be a stellar year for women with capital funding women entrepreneurs. Read on to discover how a growing movement to stand up to sexism and reduced opportunities for women has been galvanized by diverse funding models, a focus on underrepresented entrepreneurs, angel investors, efforts to bridge the gap in venture capital and elsewhere, and women putting their money to work for their causes—and for other women—to truly make a difference.

By Geri Stengel, WOMEN@FORBES

Evidence has found that women business owners start and raise less capital than their male counterparts. Yet, the credit risk of women-owned firms that are six or more years old are indistinguishable from their male counterparts, according to Small Business Credit Survey Report on Women-Owned Firms. The under-capitalization of women-owned firms places significant limits on their growth.

Women’s activism to correct this injustice has been building, as evidenced by the rising tide of financing options for women entrepreneurs. Now, the #MeToo movement could bring a tidal wave of funding as women are inspired to stand up and speak out against sexism.

Whether you have $25 or $25 million, here’s how women have made it possible for you to help create a tsunami of funding for women entrepreneurs.

1. Jessica Jackley cofounded Kiva so people could lend small amounts of money to entrepreneurs in the developing world. In 2009, Kiva brought its crowdfunding micro-lending model to the U.S. With a little help from friends, U.S. women entrepreneurs can raise up to a $10,000, interest-free loan through Kiva. Typically, five to 30 people you know can lend as little as $25. The rest comes from the Kiva lender community. It’s not just micro businesses which need small loans but scaling businesses too.
2. Catherine Berman and Yuliya Tarasava founded CNote. It enables savers to earn 40X greater return than a saving account by investing in women- and minority-owned businesses. It’s first product provides 2.5% interest versus the 0.06% traditional banks offer. CNote invests 100% of your dollars in Community Development Financial Institutions (CDFIs). These loans range from a few thousand dollars to $500,000.
3. Vicki Saunders created SheEO’s Radical Generosity to provide women entrepreneurs with larger interest-free loans. In the U.S., five hundred women (activators) make a tax-deductible contribution of $1,100, (including a $100 processing fee). Entrepreneurs compete to be one of five to divide the kitty. Activators not only become financiers but, similar to angel investors, share their expertise, connections and marketing support to help grow the companies they support.

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Women-led Startups in India Face Discrimination from Investors?

Despite a patriarchal attitude that persists throughout much of the country and negative stereotypes when it comes to women in business, there has been rise of female entrepreneurship in India in recent decades. However, there is a long way to go, and women still struggle to obtain funding in an investing and business world dominated by men--and biased attitudes. Only 9 percent of the 800 or so startups founded each year in India are led by women. thequint.com - It was a cracking idea. The market was ready and she could gauge a customer base. The research was air-tight and she found a team that agreed to work. But, the problem was with her. She was a woman and that matters in the exclusive, harsh, male-dominated world of investors.

More than 800 startups join the Indian ecosystem every year. On an average, three to four startups are registered every day. The figures may be celebratory in nature, but out of this, only 9 percent are led by women.

Sounds unlikely but in the business world, even company heads need to pass a "sex-determination test". Many women founders and startup leads in India accept that they face gender-discrimination from venture capitalists and investors during funding.

Thirty-one-year-old Priyanka Agrawal always wanted to be an entrepreneur.

"I had a 'keeda' within me to prove to a typical Indian Marwari mindset that women can build a source of income independently through their own ventures. When I decided to start something of my own, the one and only rule I made was to not take help from my dad."

Read more here.