Rethink Impact's New Fund Highlights Women Entrepreneurs' Potential

Breaking New Ground for Women in Venture Capital

In a remarkable demonstration of resilience in an otherwise challenging venture capital landscape, Rethink Impact has successfully raised over $500 million for its third and largest fund. This notable achievement marks Rethink Impact as the largest US venture fund committed to backing female-led companies. The firm raised more than $250 million, surpassing its financial targets, signaling a strong commitment to supporting women entrepreneurs during a time when venture capital funding is hitting a decade low.

The Power of Female Leadership in Tech

For nearly ten years, Rethink Impact has concentrated on investing in female-led technology companies that effectively address key societal challenges, such as health, education, and climate change. The portfolio boasts impressive company names like Spring Health, which specializes in precision mental healthcare and has attracted considerable investment, achieving a valuation of $3.3 billion. Similarly, Candidly is transforming financial wellness, promising over $1.2 billion in prospective student debt savings, while Binti is leveraging technology to digitize the foster care system, benefiting nearly one in four children in care.

A Diverse Investor Base Fueling Success

Rethink Impact has garnered a diverse investor base that includes over ten university endowments and foundations alongside limited partners like UBS and Cambridge Associates. This broad financial backing highlights the firm’s position as a prominent institutional platform within venture capital, helping propel gender lens investing into the financial mainstream. Impressively, the firm attracts many female individual investors, encompassing entrepreneurs, global philanthropists, and professional athletes who resonate with this mission.

The Vision for Impact and Change

Jenny Abramson, the Founder and Managing Partner of Rethink Impact, reflects on the perceptions surrounding women in investment sectors. She asserts, "Some may have thought that investing in women was only a passing trend in the wake of the #metoo movement. But this moment makes it clear that investing in women and impact is good business, good for the economy, and certainly here to stay." This statement underscores the firm’s conviction that their approach rebuilds and strengthens the economy by focusing on untapped potential.

Heidi Patel, another Managing Partner, emphasizes the transformative power of their portfolio companies. She states, "Our success to date and the incredible group of funds investing in Rethink Impact portfolio companies along with us are a testament to the powerful work that our talented portfolio CEOs are leading and the massive opportunity associated with addressing the most pressing issues of our day." Their mission carries a promise of empowerment and opportunity that resonates through their investment strategy.

A Collaborative Effort for Community Growth

Rethink Impact believes that activating significant societal change requires collective effort. Erin Harkless Moore, a Managing Director at Pivotal Ventures, echoes this sentiment, stating, "When women have their full power in society, including access to capital to build large and successful businesses, we all thrive. We’re proud to be deepening our partnership with Rethink Impact in this work." The aim is to create a supportive network that fosters success not only for individual women but for society as a whole.

Community Alignment and Shared Values

Organizations like the Children’s Hospital of Philadelphia see Rethink Impact's goals as closely aligned with their mission. Jenny Chan, the SVP and CIO, acknowledges this partnership rooted in excellence and diversity, recognizing Rethink Impact's significant impact in nurturing women entrepreneurs. Noteworthy figures such as Sara Blakely, the Founder of Spanx, also voice enthusiasm for Rethink Impact's approach, celebrating the initiative to support women who are poised to shape the future through transformative enterprises.

About Rethink Impact

Rethink Impact stands as a beacon for those interested in leveraging technology to solve global issues while promoting female leadership. The firm envisions a future where the world's next extraordinary companies succeed through their commitment to mission-driven initiatives, which positively impact communities. Follow Rethink Impact on social media platforms to stay updated on their journey and initiatives.

Frequently Asked Questions

What is Rethink Impact?

Rethink Impact is the largest venture capital firm in the US dedicated to investing in female leaders and supporting technology-driven solutions for global challenges.

How much money has Rethink Impact raised for its third fund?

Rethink Impact has raised over $500 million for its third and largest fund, exceeding expectations in a challenging market environment.

What types of companies does Rethink Impact invest in?

The firm invests in female-led tech companies across various sectors, including health, education, financial services, and climate.

Who are some notable investors in Rethink Impact?

Rethink Impact’s investor base includes university endowments, foundations, and industry partners such as UBS and Cambridge Associates, with a majority being women.

What does Rethink Impact aim to accomplish?

Rethink Impact aims to empower women entrepreneurs, promote gender lens investing, and create positive economic and societal impacts through strategic investments.

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