As co-founder and Chief Investment Officer of MergeLane, Elizabeth Kraus invests in women-led startups and venture funds. And she hopes to one day make MergeLane obsolete—by achieving gender parity in entrepreneurship and VC.
MergeLane, a VC fund that invests in startups and venture funds with at least one female leader, has an unusual aspiration, written in bold on its website: “We want to make MergeLane obsolete.”
As co-founder and Chief Investment Officer of MergeLane, Elizabeth Kraus looks forward to a future when MergeLane will no longer be needed, because we will have achieved gender parity. She’s seen progress in the right direction over her career.
When Elizabeth first started out as an angel investor, David Cohen—Techstars co-founder and Give First co-host—invited her to the Seed Angel Forum, which brings together local startup investors to see deals from all over the country. Elizabeth recalls: “I was 29 at the time. I was the only woman in the room, and I remember feeling so intimidated.”
Fortunately, Elizabeth didn’t stay intimidated for long. And while the percentages are still scandalously low, the number of women entrepreneurs and VCs continues to grow. Elizabeth and MergeLane are one reason for this change.
Listen for Elizabeth’s take on…
Her first meeting of the Angel Seed Forum:
“I was 29 at the time. I was the only woman in the room, and I remember feeling so intimidated. But I quickly figured out I could leverage the wisdom of all those more experienced investors by simply finding creative ways to be helpful to them.”
The origins of MergeLane:
“Sue Heilbronner approached me and said, ‘I’ve got this idea, I want to start a venture fund to invest in women.’ And I originally told her that I had absolutely no interest in that because I’ve never felt limited by my gender, and I wasn’t sure that I wanted to narrow my focus only to women. But Sue is a former federal prosecutor, and she’s quite persuasive. She said, ‘You know, I really think you should take a second look at the data and talk to the people you’ve been investing with and see what they think about the idea.’ The data was very clear that gender diversity did increase returns. Since starting MergeLane, I and I have now met thousands of people who have told me their stories of why they believe that investing in women makes good business sense.”
What VC needs now:
“We have this army of people who are willing to Give First to entrepreneurs, which is incredible. And I think it’s much easier today for entrepreneurs to find answers to their questions. There’s a lot more content than there used to be, and there’s also a lot more capital in the ecosystem. One of the things that I’ve recently realized is that every question that an entrepreneur might have is pretty Google-able these days. That’s not the case for venture capital funds. That’s one thing that I’m interested in working on now: we don’t have the same resources for venture capital fund managers as we have for entrepreneurs.”
What is Give First?
“To be honest, at first Give First seemed a little counterintuitive to me, that I would volunteer my time to help a for-profit businesses achieve a greater return. However, I remember Nicole Glaros saying to me that she was hesitant as well, and that David Cohen kept saying, ‘Just trust me, this is going to come back to you in spades.’ And that was her experience and that has 100% been my experience as well.”
David and Brad’s superpower:
“Being able to give really hard to hear feedback from a place of love.”
Companies, people, and resources mentioned in this podcast: