In the ever-evolving world of entrepreneurship, there are trailblazers who not only recognize the existing disparities but are determined to alter the narrative. Anu Duggal, a visionary with a background in e-commerce, has been at the forefront of reshaping the entrepreneurial landscape for women. Before starting Female Founders Fund, a seed-stage venture fund that invests exclusively in female-founded companies, she cofounded Exclusively.in, an e-commerce enterprise in India in 2009. It was an era characterized by the emergence of industry giants like Gilt, Rent the Runway, and One Kings Lane, and Duggal’s venture was no exception to the success story. Under her guidance the company grew to 150 employees and secured $20 million in funding. Yet it was the stark gender divide within the world of venture capital that catalyzed her mission. She learned that less than 2% of venture dollars flowed toward companies initiated by women and realized that change was imperative—it was time to harness the untapped potential of female founders.
This conviction laid the foundation for Female Founders Fund, a platform meticulously designed not just to offer capital but also to nurture a community that was conspicuously absent from the tech ecosystem in 2011 through 2012. Duggal has been challenging the status quo, empowering female entrepreneurs, and paving the way for a brighter, more inclusive future.
For Glamour’s latest Doing the Work column, we sat down with Anu Duggal to discuss her transformative journey and the remarkable impact she's making for women in the entrepreneurial world.
Glamour: Having founded Female Founders Fund, what have been the significant changes in the ecosystem that you’ve witnessed in the industry?
Anu Duggal: Next year is our 10th anniversary. So, 10 years ago the percentage of venture dollars going toward female-funded companies was minuscule. I think there’s still a lot of work to be done, but I think it’s important to recognize the progress made along the way. In 2013 we started doing a report on the amount of series A rounds that were led by female founders, specifically in New York. Series A is typically the first point at which a large institutional fund will come into a company and join the board, which sends a strong signal to the market. In 2013 there was one Series A round led by a female founder, and fast-forward to 2022, there were 39 A rounds led by female founders. So when you think about capital distribution, if you don’t have a base of companies at the A, it’s tough to see them progress to IPO exit. Sure, we can say there hasn’t been much progress, but it’s important to recognize that going from one to nearly 40 is huge.
For those unfamiliar, what are the challenges female entrepreneurs face in accessing capital, and why is there a lack of representation?
First, the industry is relatively young. In contrast to more established fields like investment banking or law, there’s less infrastructure for career progression in venture, leading to fewer women staying. Venture lacks the structured analyst and associate classes found in other industries, resulting in less accountability and data tracking on female partner representation.
When you look at New York City, for example, a diverse city, you have multiple industries represented. You have art, music, and fashion, which lends itself to a much stronger melting pot. In contrast, Silicon Valley is one industry with a homogenous hiring pattern—everyone hires people who look like them and whom they relate to. And so it’s very hard to shift an industry that’s kind of been built on that basis.
To effect change, deliberate efforts must align with the world’s diversity. It takes a lot of intentionality to say we need to make significant changes. Otherwise, it just does not reflect the reality of the world around us. And a large part of that change often stems from the top of the venture food chain. So the way the food chain and venture works is you have startups at the bottom. You have the funds like ours, but then you also have institutional limited partners or endowments that fund us. Historically, they have not put much pressure on the fund managers around diversity. They’ve given some level of lip service to it, but ultimately, if you’re generating great returns, there’s not much pressure to change, so until the people at the top are asking for change, it’s very difficult.
Share a few success stories from the 70-plus female-led companies you’ve invested in and how Female Founders Fund contributed to their success.
One standout is BentoBox, a company that [helps restaurants build top-of-the-line websites]. When we met the founder, Krystle Mobayeni, in 2015, she had around 1,000 restaurants using her platform. Fast-forward to 2021, and there were 18,000 restaurants on board, a remarkable growth. FFF played a pivotal role by introducing her to her Series B investor, DFJ, and later her Series C investor, Goldman Sachs. Despite having only a 1% ownership as seed investors, our introductions had a significant impact on her trajectory. Connecting a founder with the leaders of their next funding round is a substantial contribution.
Another notable example is Maven Clinic, where founder Kate Ryder addressed a personal need and expanded it into a solution for women’s health care. Maven’s telehealth platform addresses various aspects of women’s and family care, including pregnancy, fertility, and menopause. The company is now valued at $1.35 billion, and we anticipate it going public or achieving a significant exit in the coming years. This case exemplifies how a founder’s unique insight as the end customer can drive solutions to unmet needs.
How has your international background influenced your approach to founding FFF and navigating the industry?
I moved around a lot at a young age, which unknowingly gave me a broader worldview. Over time this has translated into a willingness to take risks. When I started Female Founders Fund, people assumed I had prior investment experience, but I didn’t. The same happened when I started a wine bar—people assumed I came from a hospitality background, but I didn’t. My exposure to various realities in different cities and gaining perspectives from that background instilled in me the belief that nothing is impossible.
What would you say is the long-term goal for FFF and its mission in supporting women?
Our goal from the get-go has been very much around proving that you can generate great returns by investing in companies started by women. In this industry, financial returns are what truly drive the change. So the more we can demonstrate that our returns are top-tier, the more hopeful we are that this will lead the industry to expand its view of what a successful founder looks like.
What does a successful morning look like for you?
Usually, two or three times a week, I’ll do a workout with a trainer or play tennis. If that doesn’t happen, especially in the spring, summer, and fall, I walk to work. I’ll grab my coffee and try to stroll through Madison Square Park, which is near our office in New York City. I’m really into gardening, so I like to keep track of what’s blooming and what new plants they’ve put in. It’s a nice little escape from everything and gives me 10 or 15 minutes to relax and clear my mind.
What’s the last great book you’ve read?
The Covenant of Water by Abraham Verghese
If you weren’t in your current career, is there another path you’d choose?
I’d either run a flower shop or operate a gardening school.
How do you typically handle rejection?
Dealing with rejection is, unfortunately, a significant part of my job. Anyone involved in raising capital faces rejection quite frequently. For me, I try not to take it too personally and remind myself that to secure one yes, you often have to weather anywhere from 50 to 100 nos.
In the context of giving advice to those who face imposter syndrome and self-doubt, what would you recommend to women looking to build their confidence and assert themselves in spaces that require a high level of confidence, especially when it comes to selling, whether it’s their idea, their product, or themselves?
Well, it’s a great question. I think no one truly knows what they’re doing, and that’s something I remind myself all the time. Ultimately, it’s about how effectively you can convince people. I received a valuable piece of advice in one of my interviews, which was that when someone asks you a question, answer the question you want to answer rather than the one they’re asking. It’s not exactly the same, but there’s a part of it where, instead of responding directly, you can steer the conversation toward what you want to convey.