In its tenth yr, Feminine Founders Fund has returned its first fund

The recent startups that yr included Airbnb, Uber, and Zenefits, and the cloud revolution was self-evident. Having simply raised its first fund, Feminine Founders Fund (FFF) was a seed investor, together with Nice Oaks and Field Group, in Maven.

“At that cut-off date, it was fairly contrarian within the sense that there weren’t every other examples to level to inside girls’s well being,” mentioned FFF founding associate Anu Duggal. ”So, you couldn’t essentially say so-and-so has constructed an organization centered on the ladies’s well being expertise.”

This month, Maven introduced it had raised $125 million funding at a $1.7 billion valuation. It was an important second for FFF, which did a partial secondary sale along with the brand new spherical. FFF has now returned its $5.85 million Fund One, Fortune can solely report. Now that the fund has been returned, all of the remaining investments and exits will probably be pure revenue for the LPs. For a younger VC agency, it is a key second: Many new corporations by no means return their first fund in any respect. 

Others in enterprise see this as a powerful sign for investing in girls, particularly those that’ve been following (or investing in) FFF. The agency’s thesis—that backing feminine founders can present outsized returns—is proving out. Paige Hendrix Buckner, CEO of All Elevate, mentioned through electronic mail that this helps “to shift the narrative about what it means to be a profitable founder and investor.” Erin Harkless Moore, managing director of investments at Pivotal Ventures, an LP in three FFF funds, agrees. 

“FFF is likely one of the few numerous managers to totally return a fund, producing sturdy returns from typically neglected and underestimated founders,” Moore informed Fortune through electronic mail. “FFF has proven that investing in girls isn’t area of interest—it’s mainstream.”

But it surely’s additionally a narrative about how lengthy and much a founder-investor relationship can actually go. Maven CEO and founder Kate Ryder described Feminine Founders Fund as a “great associate to Maven.” Ryder mentioned that FFF and Duggal launched Maven to its Collection A investor, and has remained a key advisor by the corporate’s raises. (This appears more likely to proceed, as FFF retains a part of its place within the firm.)

“Their biggest contribution isn’t what garners headlines although—it’s their behind-the-scenes dedication to being a trusted useful resource and advisor to each founder of their portfolio,” Ryder informed Fortune through electronic mail.

Different FFF exits thus far—together with plus-size trend firm Eloquii and shaving model Billie—comply with an identical mould. Walmart acquired Eloquii in a nine-figure deal in 2018, whereas Edgewell purchased Billie for $310 million. The Billie acquisition returned 60% of FFF’s second $27 million fund. 

“Even our exits, these weren’t corporations that essentially had one million time period sheets,” mentioned Duggal. “These weren’t essentially corporations that had been tremendous aggressive at seed, however finally ended up getting capital from a number of the finest VCs. So, from a chance perspective, that’s what we discover fascinating.”

The VC panorama is often tenuous and at present bifurcating, however returns will all the time do the speaking. One LP—who’s invested in about 50 funds over greater than 10 years—informed Fortune that FFF has considerably outperformed the vast majority of their portfolio when it comes to TVPI (whole worth to paid-in capital) and DPI (distributed to paid-in capital), two of an important metrics in enterprise. DPI specifically is the perennial holy grail for LPs—precise money returned.

“I’m a founder at coronary heart and I began this as a feminine founder,” mentioned Duggal, who based Accel-backed ecommerce platform Completely.in and bought the corporate in 2011. “Our staff is working for them, and now we have one thing to show—subconsciously perhaps—that different funds don’t. We’ve put this thesis on the market, we’re betting it’s going to achieve success, and there aren’t that many knowledge factors to point out it will likely be profitable.”

However there are beginning to be.

See you tomorrow,

Allie Garfinkle
Twitter: @agarfinks
E-mail: alexandra.garfinkle@fortune.com
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VENTURE DEALS

– Regal, a New York Metropolis-based AI buyer contact heart brokers developer, raised $40 million in funding. Emergence Capital led the spherical and was joined by Founder Collective and Homebrew.

– Neara, a Sydney-based AI predictive modeling software program developer for infrastructure, raised $31 million in Collection C funding. EQT led the spherical and was joined by Companions Group, Sq. Peg Capital, and current buyers Skip Capital and Prosus Ventures.

– Spot AI, a San Francisco-based AI digicam techniques and video AI brokers developer, raised $31 million in funding from Qualcomm Ventures, GSBackers, MVP Ventures, Cheyenne Ventures, and current buyers Scale Enterprise Companions, StepStone Group, Redpoint Ventures, and Bessemer Enterprise Companions. 

– Tabs, a New York Metropolis-based B2B enterprise income automation platform, raised $25 million in Collection A funding. Basic Catalyst led the spherical and was joined by Major Ventures and Lightspeed.

– Speakeasy, a San Francisco-based API instruments developer, raised $15 million in Collection A funding. FPV Ventures led the spherical and was joined by current buyers GV and Quiet Capital and angel buyers.

– Matia, a Miami-based unified knowledge operations platform, raised $10.5 million in seed funding. Leaders Fund and Secret Chord Ventures led the spherical and had been joined by Cerca Companions and Caffeinated Capital. 

– Vara, a Berlin-based early breast most cancers detection AI platform, raised $8.9 million in funding. Sensible Household Workplace, FJH, and IBB Ventures led the spherical and had been joined by Merantix, VI Companions, and EQT Basis.

– Bifrost AI, a San Francisco-based generative 3D knowledge platform, raised $8 million in Collection A funding. Carbide Ventures led the spherical and was joined by Airbus Ventures, Peak XV’s Surge, Wavemaker Companions, and others.

– Diffblue, an Oxford, England-based autonomous generative AI-for-code software program developer, raised $6.3 million in funding from Citi Institutional Strategic Investments, Oxford College, the Oxford Know-how and Improvements EIS Fund, and current buyers IP Group, Parkwalk Advisors, and AlbionVC.

– Cornerstone AI, a San Francisco-based healthcare-data cleansing AI software program resolution, raised $5 million in seed funding. Acrew Capital led the spherical and was joined by Travis Could, Internet Solar, Arif Nathoo, and current buyers Provoke Ventures, Wholesome Ventures.

– 81RAVENS, a Singapore-based sport improvement firm, raised $4.5 million in seed funding from DIGITAL HEARTS HOLDINGS and GREE Ventures.

– Avina, a New York Metropolis-based AI gross sales intelligence platform, raised $3.2 million in seed funding. nvp capital and RRE Ventures led the spherical and had been joined by Y Combinator.

– Keep, a São Paulo-based pension plan platform, raised $3 million in seed funding. Higher Tomorrow Ventures and MAYA Capital led the spherical and had been joined by 17Sigma, Grão, Ralicap, and angel buyers.

– Persana AI, a San Francisco-based AI brokers and knowledge integration platform for gross sales groups, raised $2.3 million in seed funding from Y Combinator, Race Capital, Stage 2 Capital, and others.

– Bendi, a London-based AI-powered provide chain ESG danger platform, raised $1 million in pre-seed funding. Midven led the spherical and was joined by Heartfelt Capital, Chasing Rainbows, Innovate UK, and angel buyers.

– Persperity Well being, a Los Angeles-based girls’s well being know-how developer, raised $1 million in pre-seed funding. Freeflow Ventures led the spherical and was joined by Caltech, Wilson Hill Ventures, Heritage Group, and ATMA Capital.

PRIVATE EQUITY

– ICG acquired a 50% stake in Revent Vitality, a Youngduk, South Korea-based onshore wind platform. Monetary phrases weren’t disclosed.

– TMA Methods, backed by Silversmith Capital Companions, acquired MEX, a Brisbane, Australia-based Computerised Upkeep Administration Methods supplier. Monetary phrases weren’t disclosed.

EXITS

– Bluecat Networks, backed by Audax Non-public Fairness and Madison Dearborn Companions, agreed to amass LiveAction, a Palo Alto-based community observability and intelligence options supplier, from Perception Companions, which stays a minority investor. Monetary phrases weren’t disclosed.

– GardaWorld founder, chairman, president, and CEO Stephan Crétier and choose administration members agreed to amass roughly 70% of GardaWorld, a Saint-Laurent, Canada-based safety firm, from BC Companions, which can preserve a minority stake. HPS Funding Companions will maintain the remaining fairness curiosity. Monetary phrases weren’t disclosed.

– Two Circles acquired KORE, a New York Metropolis-based sports activities and leisure knowledge and sponsorship administration platform, from Serent Capital. Monetary phrases weren’t disclosed.

OTHER

– Siemens agreed to amass Altair, a Troy, Mich.-based computational intelligence firm, for $10.6 billion.

– ADQ acquired a minority stake in Sotheby’s, a New York Metropolis-based artwork and luxurious items vendor, for roughly $1 billion.

– CECO Environmental agreed to amass Profire Vitality, a Lindon, Utah-based burner administration know-how and combustion home equipment resolution supplier, for $125 million.

– e& capital and AT&T Ventures acquired minority stakes in Derq, a Detroit-based AI clever transportation system options supplier. Monetary phrases weren’t disclosed.

– Monetary Finesse acquired OfColor, a New York Metropolis-based monetary wellness platform. Monetary phrases weren’t disclosed.

– Sana acquired Ctrl, a Tel Aviv-based enterprise progress AI platform. Monetary phrases weren’t disclosed.

FUNDS + FUNDS OF FUNDS

– Berkshire Companions, a Boston-based non-public fairness agency, raised $7.8 billion for its eleventh fund centered on center market companies within the enterprise providers and industrials, client, healthcare, and know-how and communications sectors.

– Tamarack World, a Darien, Conn.-based enterprise capital agency, raised $72 million for its second fund centered on deep tech.

– BBG Ventures, a New York Metropolis-based enterprise capital agency, raised $60 million for its second fund centered on companies with feminine or numerous founders.