Who runs the world?

Female-led venture capital firm launches in Houston to move the needle on investment in women-owned companies

A new venture capital firm launched in Houston to focus on female-led startups. Courtesy of The Artemis Fund

Three powerhouse investment minds have teamed up to launch a female-focused seed and series A venture capital firm in Houston.

In its first $20 million fund, The Artemis Fund will invest in around 30 women-led companies, and will award a $100,000 investment prize at the Rice Business Plan Competition, which takes place April 4 through 6. According to the company's press release, The Artemis Fund is the first of its kind — being female-led and female-focused — in Houston.

"There is a wealth of female leadership in the Houston innovation ecosystem, and we would like to see the same representation in the investor the investor community to help female founders thrive," says Stephanie Campbell, co-founder and principal of The Artemis Fund.

Campbell, and her co-founders, Leslie Goldman and Diana Murakhovskaya, all have extensive experience in venture capital. Campbell has served as managing director for The Houston Angel Network since 2016, while Goldman currently sits on the board of the organization and Murakhovskaya has been a previous investor member. Murakhovskaya worked for a long time in New York City and co-founded the Monarq Incubator, which focuses on women-led startups.

Women make up only 9 percent of decision makers in VC firms in the United States, and women-led companies only receive of 2 percent of venture capital, the release cites. This imbalance is something Artemis exists to change, especially since two-thirds — $22 trillion — of the nation's personal wealth will be controlled by women by 2020, the release states, citing the BMO Wealth Institute, and women currently drive 85 percent of purchases, or $150 billion.

While fewer and farther in between, venture-backed, women-led startups are more profitable. Reportedly, they achieve higher revenues by 12 percent, according to the Kauffman Fellows Report, and higher returns by 63 percent, per First Round's 10-Year Report.

"I'm enthusiastic about launching The Artemis Fund in Texas and reaching a new class of funders to invest in the most diverse tech-enabled companies from across the country," says Murakhovskaya in the release. "Houston, in particular, is uniquely positioned to be the next big tech hub with one of the most active angel groups, a burgeoning innovation ecosystem, support from Houston Exponential, top universities, and historically sidelined capital ready to be activated."

The three principals and co-founders are arguably the fund's greatest asset — from their connections, experience, and reputation. Together, they have in backgrounds in business, law, and engineering.

"We want female entrepreneurs to feel that Houston is a welcoming place to start, grow, and support female-led businesses," says Goldman in the release. "The Artemis Fund will play an integral part in creating this environment."

LetsLaunch, a Houston-based fundraising platform, has teamed up with The Cannon. Courtesy of LetsLaunch

A Houston fintech software company has joined forces with The Cannon to help connect its members to capital. LetsLaunch, a platform that allows for smaller investments from non-accredited investors, and The Cannon — along with its venture arm, Cannon Ventures — have officially entered a partnership as of this month.

"We're basically providing a transactional tool to allow Cannon Ventures to access more members who, legally, they couldn't access before," says Nick Carnrite, co-founder and CEO of LetsLaunch. "For us, it's a good thing because instead of having to go out and create a community of startups and investors, that gets brought to us."

The partnership will allow for The Cannon's members to have access to the platform, and LetsLaunch can piggyback off the Cannon's existing network and programming. For instance, if The Cannon hosts a pitch night, LetsLaunch could enable live investing so that anyone in the crowd could invest that night.

Additionally, companies backed by Cannon Ventures can easily do a dual raise — one side open to accredited investors writing big checks and the other on LetsLaunch open to anyone. For this setup, LetsLaunch investors get the perk of having the company vetted by the Cannon Ventures investors.

"[The partnership] allows us to further the vision of Cannon Ventures, which is to truly democratize angel investing," says Lawson Gow, founder and CEO of The Cannon and Cannon Ventures. "We want to activate and allow anyone who is interested in making investments of any size and in any way." (Gow is the son of the CEO of InnovationMap's parent company.)

LetsLaunch opened for business at the end of last year. The site works, in many ways, like a crowdfunding site, only investors receive equity for their money. Due to regulations, investment campaigns max out at around a million dollars, and how much one can invest depends on their annual income. For LetsLaunch's demographic, most users can invest up to $20,000 a year, Carnrite says. There is a minimum of a $250 investment per transaction, but Carnrite says he expects the average investment to be closer to $1,000 per transaction.

According to Carnrite, LetsLaunch is solving the exclusivity problem that traditional investing creates. Such a small pool of people can invest in companies for equity.

"There's something like 30 million people globally that have a $1 million net worth, which is the definition of being an accredited investor," Carnrite says. "Thirty million people out of 7.7 billion, so it's a little less than half a percentage."

And, according to Gow, this is a huge problem in Houston for companies who don't have access to funding.

"We had a company leave The Cannon last week and move to New York because they couldn't get funding in Houston," Gow says. "We're still losing battles every day — and one of the main reasons is getting early stage funding in companies."