Inovia’s first Discovery Fund backs the next generation of VC funds in their mission to identify and nurture high-potential startups at the pre-seed and seed stages. We sat down with these emerging managers to discuss their vision, their approach, and what they look for in a pitch.
Today, we’re happy to introduce you to Shelley Kuipers and Judy Fairburn, co-CEOs of The51.
Shelley and Judy share a passion for putting women in a position to shape the economy they want. So, when they joined forces (along with Alice Reimer) in 2019 to launch The51, raising funds to invest in startups led by women and gender-diverse founders was only part of their mission. Just as important was creating an online and in-person community where thousands of aspiring founders and investors would learn from seasoned ones and grow the confidence to follow suit.
The co-CEOs of the firm bring a wealth of experience to the mission. In the past 25 years, Shelley has worked, started businesses, and invested in the tech industry, seeing up close the lack of support for women entrepreneurs, who receive only 2.2% of global venture capital. Judy, an engineer with a knack for innovation, knew the ecosystem well, having held top executive roles in the energy sector, chaired the board of the Alberta Innovates agency, and co-founded Evok, a cleantech fund.
Named after the share of women in Canada’s population, The51 now connects more than 25,000 people. It runs two venture “Feminist Funds” (of $10 million and a targeted $10 million, respectively), reserved for accredited investors and family offices. Investments in Fund II, focusing primarily in Canada, have included hydrogen storage company Ayrton Energy and AI-powered patent search platform NLPatent. Additionally, The51 has a joint venture with CNSRVX in The51 Food and AgTech Fund.
WHY DID YOU CHOOSE TO FOCUS ON THE EARLY STAGES OF INVESTMENT?
It is very inspiring to meet founders every day who really want to change the world, see what’s possible when others can’t and have that boldness about them that they can do it. Our experience has also been that if you get in earlier, the potential return is greater.
The51 fund thesis focuses on investing in an asset class – women founders – who are overperforming and underinvested. Here in Alberta, we have incredible statistics showing that 30% of early-stage tech companies are woman-led or co-led. But after four or five years, once companies are more established, that number plummets to 6%. Helping women successfully commercialize and lift them to series A performance is a very compelling mission.
TELL US ONE OR TWO THINGS THAT MAKE YOUR FUND UNIQUE
We are one part community and one part capital, so we’re trying to mobilize change, participation, and accessibility side by side with an investing product. For the venture funds, we’re looking to activate largely women’s capital to an all womens’ team that’s deploying the capital, and we’re investing in women-led and co-led businesses. And every time an LP signs up for our fund, they become a community member, so we’re building capacity.
Our ambition is to scale from hundreds to thousands of investors. We know 65% of Canada’s wealth will be in the hands of women by 2030, so this is a long game. Women will be investing in this asset class: how can we become that long-term coveted destination for women’s capital in venture capital?
WHAT HAVE YOU LEARNED THROUGH FAILURES OR TRIALS AND ERRORS?
Really do your due diligence with the founder – and vice versa. As an investor, you may be compelled by the product’s vision more than by the founder, but you need to remind yourself you’re investing in the founder’s ability to deliver that product to market. Some things, even the littlest ones in the language used when a founder pushes back, give a good clue they won’t take coaching very effectively. For example, when there is a lack of desire to implement governance, that’s a major red flag.
WHAT GETS YOUR ATTENTION IN A PITCH?
We focus on getting to know the founding team and their story. Someone once said “Invest in an A-team, even if they have a B technology, because they will successfully pivot. Don’t do the opposite.” We find this to be true over and over again.
We invest in the world we want to see, so intentionality is important. We are also investing in venture returns, so it needs to be a highly scalable business. We like to see a commercialization DNA in the team from the onset.
WHAT IS THE ADVICE YOU MOST OFTEN GIVE TO FOUNDERS?
Be married to the problem you’re solving, not the solution. The solution will change over time, especially in the early-stage business.
Visit our website to learn more about the mission and leaders of other exceptional emerging managers in our portfolio: Boon, FounderFuel, Front Row Ventures, Garage Capital, Luge, Maple, Mighty Capital, N49P, Northside Ventures, Roar Ventures, and Two Small Fish Ventures.