Founder Fridays No. 126
Female Founder Funding Falls -- Persistence Versus Stubbornness -- Technology Windows
Happy Friday.
Female Founder Funding Falls
Women founders just had their worst year in venture funding since 2017, and the data shows they're moving backward — even a proven founder with a $30 million Series A in robotic lash extensions needed 13 months to close because venture capitals (VCs) couldn't grasp the market opportunity. The artificial intelligence (AI) gold rush of 2024 has actually worsened the gender gap, with women-founded startups receiving their lowest share of VC deals since 2017 at just 22.7% of total deals. Early-stage financing, traditionally a stronger area for women founders, saw an alarming drop from 26.5% to 20.5% women representation in first financings over four years. This downward spiral is further complicated by the decline in first-time VC funds — typically more diverse than established ones — creating a vicious cycle where fewer women in check-writing positions means fewer opportunities for women founders, especially in the booming AI sector where representation matters most for avoiding systemic bias. Pitchbook (5 minutes)
Persistence Versus Stubbornness
Sometimes what looks like foolish persistence becomes a legendary success story, while what seems like admirable determination ends up being a costly lesson in stubbornness — and the kicker is that they're indistinguishable in the middle of the journey. Instead of falling for the survivor bias in success stories or the confirmation bias in failure stories, the key is to establish clear parameters for your persistence: set hard deadlines for progress, measure acceleration rates objectively, and regularly check if you're still learning and energized by the work. Most importantly, recognize that even VCs, whose entire job is picking winners, usually lose money — so stop agonizing over whether to persist or pivot, and instead focus on gathering data as quickly as possible to figure out which path you're actually on. A Smart Bear (6 minutes)
Technology Windows
The success of your startup might have less to do with your idea or execution than with an invisible force: technology windows of opportunity. Most great companies, from railroads to Tesla, were born during brief periods when new technologies created massive value gaps — while countless failures came from launching after these windows closed. The pattern is remarkably consistent: a technology emerges, early adopters gain wealth and status, knowledge spreads, competition floods in, and incumbents eventually lock up 90% of opportunities through network effects, scale and regulation. Today's AI window is still open but uniquely challenging — it's the first time in history where the world's six most valuable companies are all racing to dominate the same technology, making speed and differentiation more critical than ever. NFX (12 minutes)
Founder FAQ: What Should a Startup Employment Offer Letter Include?
Most startup founders don't realize that their offer letters can make or break their ability to protect the company and attract top talent — and vague language around equity is often their biggest mistake. Instead of relying on promising percentages that can cause confusion and legal issues, successful startups explicitly state the exact number of shares and detailed vesting schedules in their offers. Beyond equity, a well-crafted letter needs to nail three critical elements: clear role expectations while maintaining flexibility as the company evolves, airtight intellectual property protection through a proper Confidentiality and Invention Assignment Agreement (CIIAA), and transparent at-will employment terms that protect both parties. The best letters also create excitement through branded welcome copy while clearly laying out the compensation package, start date and any probationary periods. Westaway (7 minutes)
Startup Funding Guides
I’ve put together a series of guides to equip founders to excel at fundraising. These guides break down the deal term by term and give you negotiation tips so that you can speak to investors with confidence.
Convertible Note: Guide / Video
Built By Founders for Founders
I co-founded my first startup with friends in 2007. As a founder, I struggled to find an affordable law firm that was designed for early-stage startups. So, I created one myself. Westaway is a law firm built by founders, for founders. If you're ready to ditch the outdated billable hour model and try a new approach to legal services that saves you time and money, let's talk. I'd love to jump on a 15-minute call to show you how we can make legal work smooth, fast and cost-effective for your startup. Schedule a call with me now.