Monday, September 23, 2019
How TuesdayNights is Helping Women Entrepreneurs Connect With Capital
Raising capital for a female-led startup can be very diffiult--which is what Justine Lassoff and Melinda Moore found out when they started their own company, LovingEco, in Los Angeles. So, to help other female entrepreneurs, they founded TuesdayNights (www.tuesdaynights.org), a group in LA which helps female entrepreneurs connect with capital and each other to improve their access to capital. (Editor's note, TuesdayNights is running its Impact Conference in Santa Monica on Friday, where we are a Media Partner) Photo: Left, Melinda Moore and Right, Justine Lassoff
What is TuesdayNights?
Justine Lassoff: Melinda and I founded TuesdayNights to help women connect and to impact change through networking events and infinite gatherings. We actually started the organization in 2013. Back then, there really weren't many networking events or groups for high power women in Los Angeles, so we really filled a need.
Melinda Moore: If you think about it, guys have golf courses, and you have things like the PayPal Mafia, and poker games. Justine and I were on Sand Hill Road, raising money for LovingEco, and we realized that there really wasn't enough money flowing to female founders. After we sold that company, we look at each other, and decided to become part of the solution. TuesdayNights was really about making that happen, allow that fast networking to happen, which can lead to women raising money, building teams, and gaining critical knowledge to move their businesses forward, in a very powerful way.
How do your events work?
Justine Lassoff: One example of these intimate gatherings and events, is we did a luncheon featuring the CFO of Goop. That was on international women's day, and that really got a group of high power women, who were able to connect one-on-one, giving them opportunities they wouldn't other have to grow their business. It really allows them to expand their network in a positive way. That event filled up in hours, and it really validated what we're doing, in terms of the need for some high powered gatherings for women, including a mix of female entrepreneurs, as well as investors, and some senior executives from the local, corporate community in Los Angeles. Goop is the lifestyle brand founded by Gwyneth Paltrow.
What is the most difficult challenge that women entrepreneurs face?
Melinda Moore: One of the things required to create, build, and scale a company is capital. Women have a harder time asking for money and raising money. That's because, most VCs are men, and you physiologically tend to recognize the things that are most similar for you. So, if you are starting a beauty company, like Justine and I were with LovingEco, which was natural and organic products and skincare, lots of men just didn't understand why you would need organic skincare products, or why organic jeans were just much more sustainable, because of water use and all these other things. I think one of the hardest things for women, is to access capital. Justine and I have included venture capitalists and people focused on debt equity, crowdfunding, and all kinds of different sources for raising money at our upcoming conference. And, I wrote the book How To Raise Money: The Ultimate Guide To Crowdfunding, which you can find on Amazon, to provide alternative ways for women and minorities to raise money, giving them a successful formula and how to do so.
Justin Lassoff: Part of our organization is we have founding advisors. One of them is Dana Settle, one of the leading venture capitalists in Los Angeles, and who also happens to be a woman. She, as well as several other, wonderful female investors, will be at our upcoming conference.
For the men who are investors who might be reading this, what advice would you give them on working with women entrepreneurs?
Justin Lassoff: There was a study recently that showed that investors, in general, have a bias against women. That's not in a negative or positive way, but which shows that investors—whether from their environment, or growing up—all have different biases, not just for male investors, but also female investors. You just have to be aware of that bias when you are pitched by women. The example in the study, was it showed that men often asked negatively focused questions when asked by women entrepreneurs. For example, they'd go after their estimates of the size of the market, whereas in a man they might say—you sound great, tell me how you're going to attain that goal? But, for the woman, they'd say “there's no way you can obtain this.” Simplifying that, the bias is the men tend to question the women's focus on what they're trying to do, rather than asking them to explain their business growth; for male entrepreneurs, there's more acceptance of what they are saying. It's an ingrained bias they're inserting, and they just need to be aware of it, so that during a meeting they can try to refrain from negative questions, and be more aware of the differences between female and male entrepreneurs when they are pitching.
Given it's often harder for women entrepreneurs, what the biggest startup advice would you give those women?
Melinda Moore: Number one, is women have to realize that they are selling an opportunity. They have to be able to lean in on raising money. Women also need to ask for more. In that same study, it showed that when men and women have the same type of companies, women will always ask for less money than the men. A part of that, is being comfortable asking for what you're worth, and what your value is. The third thing, is know your number. For women, it's really important to understand unit economics and capital utilization. They have to have a really tight grasp of the economics of their business, and how to scale, so you don't get thrown when you are asked those questions about your business model and finances, or how you intend to scale the company.
Justin Lassoff: Obviously, investors are going to look at your company, see who you are going after, and see if that's a strong fit. You've got to do your research, and take the time so you're not meeting with investors who never invest in your sector. You have to grow your network. That's where TuesdayNights comes in. That person you network with might be the person who is going to introduce you to the person who is going to fund you. Personal networking is really and element you need to focus on. That's something that TuesdayNights provides, which is connecting women with other women that can help him.
Talk briefly about the conference you're running later this week?
Melinda Moore: Our goal is to unite over a hundred of the top female entrepreneurs and thought leaders. That said, we're absolutely including men. We're focused on innovation, diversity, and solving big, world problems, especially around access to clean water, to food, sustainability, and energy, and what we call world positive investing. We're trying to be part of the solution, by bringing everyone together in an intimate setting on the beach in Santa Monica.
Justine Lassoff: One area we want to focus on for this intimate gathering, is to encourage networking, through breakout sessions, so that the women and men in attendance can come up with new connections. In addition to the innovation and diversity we're focused on, in the afternoon, we're going to have a cocktail reception, to again allow the attendees to connect and really grow their network.
Melinda Moore: There are six different areas we're focused on, including impact, fundraising, health and wellness, female founders, and networking, all under the umbrella of building the community.
Thanks, and good luck!