Inherent gender differences between men and women do not make one gender better or worse at high-growth entrepreneurship, said Teresa Nelson, Ph.D., Astia Global Advisory Board, Astia Executive in Residence 2013-14, and Chair in Entrepreneurship at Simmons College. Social norms, expectations, and early training direct men and women down different paths. It is only recently that there has been a concerted effort to change perceptions and provide training for women.
Astia was formed in 1998 as an incubator for high-potential, women-led companies. It morphed and began perfecting its current model in 2004 when Sharon Vosmek, an economist by training, became COO. Astia provides access to capital and expertise, and develops the leadership skills of women on the executive team, said Vosmek. She became CEO in 2007.
Vosmek wants more recognition of and investment into high-potential, women-led companies. Astia puts a value on diversity of input and control in firm creation and execution, not just because its fair and just. There is a clear economic case for it, including:
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Reducing blind spots caused by hidden bias in investment decisions leads to higher performance in venture-backed companies, according to research conducted by Dow Jones VentureSource.
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Enhancing team performance through the diversity of perspective and insight: inclusive teams outperform homogeneous teams, according to research conducted by Professors Anita Woolley of Carnegie Mellon University and Thomas Malone of MIT Sloan School of Management.
Astia’s fundamental philosophy is that it is not a “woman’s network.” For women to succeed in high-growth entrepreneurship, they need exactly what men need, said Vosmek. All entrepreneurs, whether male or female, need access to an influential and powerful network of experts and investors, according to research published by the Kauffman Foundation. Entrepreneurs are men and women, investors are men and women, continued Vosmek. All need a vibrant ecosystem that breaks across gendered business practices.
What’s holding women-led companies from reaching their potential? Right now support and investing in companies falls heavily along gender lines. The problem doesn’t lie within one company or one sector, such as venture capitalists. It’s a societal problem, said Vosmek. Men and women are socialized differently and are part of different networks. When businessmen make big decisions, such as who to invest in, they turn to a trusted circle of people who are usually men.
By not working together, men and women are missing opportunities. Astia’s model brings men and women together to support and invest in high-potential, women-led companies which have a big idea, address a big market, and have the right team.
It has a highly curated network of 5,000 experts including serial entrepreneurs, angel investors, venture capitalists, corporate leaders, bankers, accountants, lawyers who crowdsource -- refer, vet, advise, and fund -- high-potential women-led companies. The network is 50% men and 50% women.
An example of the process is Bonnie Ryan of Silicon Valley Bank, who referred Alexa von Tobel, founder and CEO of LearnVest, to Astia. Ryan is what Vosmek calls a power referer. Approximately 150 people within Astia have earned this title because of the quality of the referrals they make. Over the next six months as von Tobel progressed through Astia’s pipeline, which is called Astia’s Expert Sift Process, she was vetted by a variety of people including Natalie Rowan, a go-to market expert, Marleen McDaniel, who held three C-level positions in venture-backed companies including women.com, and Eghosa Omoigui, who was a senior investment professional at
Astia has always had a great track record: 60% of companies have achieved funding or an exit within one year of presenting at Astia and $4.5 million has been invested by Astia Angels since its 2013 launch. But Vosmek revealed to me that changing the frequency of showcasing companies from an annual bias to a monthly basis has increased Astia’s success rate. Two out of three companies secure funding at the venture lunches. The companies that make it to this stage have gone through a rigorous process of being screened and advised by industry and operations experts. Currently 1,100 companies are in the pipeline.
Got money? Monthly venture lunches are held in San Francisco, New York City and London. Pop-up lunches have been held in cities such Berlin, Dublin and Detroit. Astia invites any qualified angel or venture investors to attend.
Editor’s Note: This is the second of a 2-part series on Astia. Click A Surefire Way To Birth 10,000 More Supernova Companies And Ignite The Global Economy to read the first article. Read Astia’s white paper on the movement they are creating.
* This article has been updated to eliminate reference to people in the Expert Sift Process providing advice, von Tobel having a Harvard MBA and receiving investment as a result of attending an Astia lunch.
