Women of color are starting businesses at a much higher rate than any other demographic. Yet they lack access to capital, access to resources, access to networks. In 2022, women of color business founders received only 0.39% of the $288 billion that venture capital firms deployed. We spoke to a Black female founder, Netta Jenkins, CEO of Aerodei and author of “The Inclusive Organization: Real Solutions, Impactful Change, and Meaningful Diversity,” to learn more about her journey to acquiring funding and tips for other female founders launching their own businesses.
Read on for a look into the venture capital process for one Black female founder:
21N: What was your process for acquiring VC capital?
Netta Jenkins: I am the Founder and Chief Executive Officer of Aerodei, an AI-powered inclusive performance platform that ignites DEI efforts by measuring and quantifying the impact of every employee through goals, performance reviews and workplace surveys. It saves everyone time while removing subjectivity. Aerodei bridges the gap between employees and employers, and it has gamification elements to make the process fun.
Since its inception, I’ve been on a fruitful capital journey. My commitment to create an impactful prototype and a proven track record of results caught the attention of Hoberman Rockets that invested in Aerodei. It’s been important to build connections with influential leaders who not only have the means to fund but also believe in Aerodei’s power to transform organizations.
21N: We hear a lot about the barriers that Black women founders face in the venture capital sector. Did you encounter bias in the process of acquiring venture capital?
Jenkins: I’m currently in the process of securing my seed round, and I’m acutely aware of the hidden biases, particularly affecting Black women in the venture capital landscape. I’m fortunate to be part of a venture studio that comes with a network of venture capital (VC) connections, which has been instrumental in my journey.
I’m also committed to connecting exclusively with VCs specializing in social enterprise SAAS with a strong emphasis on diverse founders. It’s crucial to me that my chosen investors understand how Aerodei will revolutionize every organization it touches. This partnership is akin to a marriage, and finding the right VC is paramount for driving meaningful progress.
My goal goes beyond simply securing VC funding. I believe Aerodei will achieve remarkable success, and I’m grateful for the support of individuals who are actively promoting me within their VC networks, which makes it easier for me to pitch and emphasize my experience.
Nonetheless, it’s essential to acknowledge the stark statistics in this space. White women receive 79% of VC funding out of underrepresented groups, while other underrepresented demographics face significant challenges. Black women, in particular, face an uphill battle, given the lack of advocates within VC networks, making this stage all the more demanding.
21N: What are three pieces of advice for Black women who are launching a startup?
Jenkins:
Understand your purpose while also maintaining low expenses. It’s important to identify your mission because during challenging times knowing your purpose will help you stay committed. As you are building your startup, avoid putting all your funds into product development. Begin with design and create Figma files, test with potential customers, and then proceed with building. As you grow your startup, while it will be temping to focus on building product, pour funds into learning your audience and product.
Find one to two advisors who truly grasp the problem you’re addressing. Advisors and mentors can help you drive success. Advisers can also help you assess the problems you are attempting to address, as well as gauging the prices for the product or services you will provide. Advisors can also help you to assess the market value by studying competitors pricing.
Identify any relationships you have that are linked to VC connections. Leverage these relationships, refine your pitch deck, keep it concise, and provide a shareable document link to your connections. Ask them not only for introductions but also for their advocacy on your behalf. Similar to networking, acquiring venture capital is about building authentic relationships.