SheEO`s Community-based Funding Model: An Alternative Solution to Foster Women Entrepreneurship?
| Case Code: LDEN175 Case Length: 19 Pages Period: 2015-2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.400 Organization : SheEO Canada Fund Industry : Financial Services Countries : Canada,United Kingdom,Australia,United States Themes: Entrepreneurship, Venture Capital , Gender and Leadership, Women Entrepreneurs |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Key Components of Sheeo Model
SheEO was started as a means to support and fund innovative women entrepreneursinterested in creating success on their own terms. Sincethe success rate for small business was a deterrent, SheEO sought to provide women with the tools needed to increase the success rate. Saunders sought to build a business funding model that helped support women who leveraged their talents, strengths, and passion to create businesses that facilitated new mindsets and new solutions for a better world. Saunders believed that it was possible to have a funding model built on abundance, generosity, and democracy that would attract both investors and entrepreneurs. She was confident that aclose-knit network of women funders and entrepreneurs would have the capital, buying power, and the expertise to create a self-sustaining system that provided value for all..
Organization Structure and Design
SheEO had a collaborative organizational structure where the headquarters played the role of a facilitator rather than that of a controller.It created a distributed, global network that was self-sufficient locally and leveraged technology to coordinate across regions and amplify impact. The Activators and businesses self-organized events that were run by an entirely volunteer-driven community in each country that was committed to building on the framework of radical generosity in order to strengthen their community. The activators and the businesses together brought the SheEO model to their local communities and made it culturally specific while aggregating local capital. This kind of operational structure ensured fair distribution and facilitated ease of scaling, anywhere in the world..
Inclusive Approach to Venture Selection
SheEO did not have any special preferences on the sectors in which the firms operated and included wellness, AI, education, food sustainability, waste reduction, energy efficiency, inclusion, and biotech innovation. Preference was given to businesses run by racial minorities, indigenous women, LGBTQ women, or women of color. Around 40% of the founders who were part of the first three SheEO cohorts (2015-2017) represented one of these groups..
Personalized Approach to Mentoring
SheEO selected one firm from an average of 50 applications received. It provided all applicants with specifically tailored feedback and advice. On an average, each applicant received three personalized comments and two offers of help from Activators in SheEO’s network to help them grow their business. The selected firms had a host of support features that included attending a retreat organized by SheEO for the founders to get to know each other and their businesses and receiving world-class coaching and support for a year from SheEO’s ‘Guided Development Team’. In addition, they gained access to the SheEO network. Even applicants who were not selected for funding could take advantage of the periodic online learning labs offered by SheEO as well as get selective advice from the SheEO network..
Monitoring Venture Performance
SheEO had put in place a few mechanisms to keep track of the progress made by the firms that received funding. It had come up with a personalized guided development program that was designed to create the conditions for the firms to be accountable. All firmswere required to have two coaching calls each month and a regular check-in with Activators and the SheEO team at headquarters. The firmsalso had to propose a ‘use of funds’ as part of the fund distribution process during SheEO Venture Program roll-out whereby each founderhad to determine the milestones and reporting structure for their firms. Finally, the Activators received annual updates on the Ventures’ performance..
What next?
In 2020, SheEO hosted 263 Zoom calls, and reached over 8,000 guests through virtual events. Despite the COVID-19 pandemic, 1,500 new Activators joined,growing the community by over 30% to support the 68 ventures associated with SheEO at that point. In March 2021, Bank of Montreal (BMO) committed US$1.2 million to SheEO Programs. This funding enabled SheEO to fund twice as many ventures in 2021..
Exhibits
Exhibit I: VC Fundraising – Male vs. Female Founders
Exhibit II: Background of Vicki Saunders
Exhibit III: Gender Lens Investing
Exhibit IV: Women as Investors
Exhibit V: SheEO’s Venture Portfolio (Partial List)
Exhibit VI: Other Initiatives
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