Jenny Abramson and Heidi Patel have successfully raised $250 million for their third Rethink Impact fund, making it the largest VC firm dedicated to funding female CEOs. This achievement comes at a time when venture fundraising is facing challenges, and diversity, equity, and inclusion efforts are under attack. The fund has attracted investors such as Melinda French Gates’ Pivotal Ventures and institutional investors like UBS and Cambridge Associates, significantly expanding its reach and resources.
Jenny Abramson’s journey to launching Rethink Impact was influenced by her mother, Patty, who started the Women’s Growth Capital Fund in 1997. After witnessing the lack of funding for female founders during her time as a tech startup CEO, Abramson felt compelled to make a change. Teaming up with impact investing expert Heidi Patel, the duo closed their first fund in 2017 and made successful investments in companies like Ellevest, Guild Education, and Spring Health. Their track record has led to a successful fundraising campaign for Fund III, attracting significant interest from investors.
While some critics argue that focusing on female founders may limit financial returns, Abramson and Patel believe they can find promising companies that are often overlooked by male-dominated VC firms. They emphasize that having a focused approach enhances their deal flow and sets them apart from other venture funds. By investing in female-led startups and companies with an impact-oriented mission, they believe they can generate positive societal outcomes while still delivering strong financial returns to their investors.
In addition to their investment strategy, Abramson and Patel are known for their networking skills and hands-on support for portfolio founders. They have been credited with making profitable connections for their companies and leveraging their relationships in Washington D.C. and Silicon Valley to benefit their portfolio. This approach has helped companies like Parallel Learning and Candidly secure funding and strategic partnerships, leading to their growth and success in the market.
Despite legal challenges and skepticism from some investors and academics, Abramson and Patel remain committed to their mission of supporting female founders and reshaping the funding landscape for women CEOs. They believe that the data supports the potential for female-led companies to grow faster and achieve higher valuation increases, ultimately leading to greater gender parity in the industry. With their third fund now managing over half a billion dollars, they see this milestone as a significant step in the right direction towards achieving their long-term goals.
As they continue their work with Rethink Impact, Abramson and Patel are focused on not only delivering financial returns for their investors but also making a lasting impact on the funding landscape for female founders. With their successful track record and commitment to supporting diverse entrepreneurs, they are optimistic about the future of their firm and the opportunities to drive positive change in the industry.
