An LP who's getting enviable returns is probably not really, really dumb. Probably pretty capitalist, probably not particularly heartless or sentimental. I think you may have misread my claim, or stuffed it with a little more sugar than the [very simple] recipe called for
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That chart and fortune article make a pretty convincing case for the underfunding of female founders. This does mean that the marketplace has provided an opportunity to invest in female founders and achieve significant profits.
They kinda... don't! Unless you assume that female founders are, as a group, statistically identical to male founders in e.g. the industries they're tackling (ex: tech vs. consumer goods). This is a *really* complicated question that's very difficult to discuss critically
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Okay, sure women founders may start relatively more consumer companies and fewer high tech and biotech companies. An those consumer companies may require much less capital. But as the article states, its not just transaction size, but total # transactions as well.
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You would expect transaction size & # of transactions to trend together in this context. VCs care a lot more about the returns they can expect in a range of plausible best-case scenarios than anything else. There's a lot of overhead. Within reason, larger deals are preferable.
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Might be the case that you can figure out which kinds of deals are still *really* profitable but not quite tasty enough for most SV VCs, then capture a more diverse portfolio! But this doesn't point to some systemic failure of VCs so much as a need for diverse financial products
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I'm almost certain that is the case. Most of the VCs now copy each other, the way that IBs copied each other in the late 1990s IPO markets. Personally I reject quota based affirmative action, intersectionality identity politics, and the patriarchy conspiracy theory anyway.
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