Why Invest Now In Women-Led Structured Exit Venture Funds?
Conventional venture capital, designed to fuel innovation 74 years ago, appears increasingly unfit for the majority of privately held companies that underpin economic stability, with less than 4% of venture-backed companies achieving successful exits within 8-10 years. The high failure rate and lack of ROI from traditional venture capital funds, which require a company sale or IPO for exits, suggest the need for a new model that supports sustainable business growth without the pressure to sell or go public.
The Structured Exit model offers a promising alternative, providing capital with predefined buyback terms that allow companies to return capital to investors independently of the market conditions. This approach not only reduces investment risk by removing the dependency on market-driven exits but also opens opportunities for underrepresented founders by offering more stable and attainable growth prospects. Additionally, investing in women-led startups, which are shown to be more capital-efficient and provide higher returns, could address gender disparities in venture capital and harness untapped potential for superior financial performance.
Access the entire article to explore how the traditional venture capital model is evolving and why Structured Exits might be the key to more sustainable investments. Discover the potential for high returns with reduced risk through this innovative funding approach, especially in the realm of women-led startups, which are proven to yield robust financial outcomes.
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Table of Contents
Conventional Venture Capital serves only 4% of Startups well
Structured Exit Investment Model increases stability and ROI
Why invest now in Women-Led Structured Exit Venture Funds?
Business case for investing in Women Startup Leaders
Thanks to our Contributor
Gillian Muessig and Anne Kennedy are co-founders of Outlines Venture Group and Managing Partners of the Sybilla Masters Fund. With Mastersfund, they invest in diverse teams led by women, at the stage of first revenue using structured exit funding. They also co-host podcast VC Confidential, weekly on WMR.fm.