Doing Venture Differently = Greater Returns
Powering 100 Underestimated Founders to Success in the Next 10 Years
By: Giselle Melo, General Partner, Matr Ventures
Matr Ventures was created to invest in Black, Indigenous, LatinX, Persons of Colour, Women, and other minorities. Less than 3% of VC funding goes to Black, Indigenous, LatinX, other minority founders, and approximately 10% to women.
We believe this is a big problem and an even bigger opportunity.
Women founders and diverse teams outperform others on a revenue and ROI basis compelling us to seek these founders and invest in them. The opportunity to make a high financial gain and positive societal impact — forms a core foundation to our thesis.
Strength Exists In Numbers But So Do Distractions
As Partner & Head of Investment Banking at Toren & Associates since 2017, I evaluate potential deals for the wealth management industry based on several factors such as revenue, profit margins, client composition, capital structures, and partner dynamics. To date, I have completed transactions totaling over $5 billion.
However, in 2011, I was unsuccessful in securing funding for my own tech start-up.
We Were Underestimated
In 2014, my co-founder and I bootstrapped a company called Nichee. We reached a point where we needed capital to grow.
We had over 7,800 active community members and reached a rate of $12k MRR. It was a virtual marketplace for independent brand products. Heavily powered by a community, Nichee was unique. Brands in our community were scouted and promoted by community members and these brands would then share a portion of profits among their Scouters and Promoters.
Our financials and capital allocation were well-defined, the technology was scalable and secure, growth milestones were intact, revenue was increasing monthly and we told a beautiful story about Nichee.
Our ten-month hunt for funding began. By venture investor standards, we were an “investable” company, yet we were overlooked. We were underestimated.
On two separate occasions, my team and I were seated in waiting rooms ahead of investor meetings. In these two situations, we noticed our audience of investors peered out to see us as if to size up their guests only to later claim that they had not done so. In both cases, junior staff would later confirm our experience.
Two other VCs proposed that we reach a rate of 10k MRR for 3–6 months then follow up. We reached the goal and they moved the target to 12K MRR. We hit that goal. The target was moved again.
Another situation was so blatant in its disregard for us, we simply walked away.
Ultimately, we pivoted into a service business and grew the company using our revenue and profits. Today, NicheeStudio is a software development business. We build custom enterprise, mobile, and machine learning systems for high-growth companies and fortune 1000 clients. We turn old legacy systems into beautiful, new digital systems and advise large corporations on integrating start-ups and leading-edge tech into their cumbersome and layered structures.
My own underestimated experience planted a seed. If we were having trouble gaining access to funding via a gated and bias VC community — when we had the revenue and financials — it must have meant that we were not alone, and now we know we are not.
Networks ARE Opportunity
We have deliberately assembled a curated group of Advisors and have organized them into “the PowerUp Network” to propel our portfolio companies with practical guidance and business-relevant commercial introductions for revenue or business impact.
Advisors within our network fit into one or two of these categories:
● Successful founders that have exited
● Corporate decision-makers and purchasers
● Leading technology and subject matter experts
These individuals have first-hand knowledge in scaling companies, growing teams, raising capital, operating multinational organizations, and building products with advanced technologies. They have lived through failures, successes and they desire to see founders win and win big.
Advisors are partners with our portfolio and we encourage equity participation, investment and close association between our founders and their supporting community of advisors. And it works.
PowerUp is on track to be a network of 500 strong Advisors by the end of the year.
We’re here to win — BIG.
Join us.
Giselle
Founder + General Partner
Matr Ventures
About Me, Follow Me on LinkedIn, Twitter
This article is part of MATR Ventures Newsletter. If you would like to subscribe, please Sign up.
