Jesse Draper, Breaking Ground As Los Angeles' First Female Solo G.P. - D.F.A. #8
Also, how Lead Zeppelin's creating heavy demand for investment firms and profitable companies in summer 2023, and How to Get LPs and Investors From Shipping Manifests!
In this seventh newsletter:
An interview with 4th-generation VC Jesse Draper
How Lead Zeppelin is Driving Demand For VC Firms and Profitable Companies
How To Get LPs and Investors from Shipping Manifests
And We’re Back: It’s been a while, and we’re back with a bang! It’s been nearly 6 months since our last newsletter (Paris Hilton & Carter Reum), but we’ve been busy raising a fund (D.F.A. Capital Fund I)! We expect to do first close on the fund around 10/1/23.
Lead Zeppelin: There have also been a number of other new developments. I’ve had the chance to meet with probably 100 other VC and private equity firms over the last 6 months, and I’ve learned from chatting with them that it can be really challenging to do cold outreach in the current economic climate. That was part of the reason that our team started a new entity, Lead Zeppelin.
Coming Soon: In the coming weeks, we have interviews coming up with some of the brightest minds in investing, including Precursor Ventures’ Charles Hudson!
Jesse Draper: Making Her Own Way
It’s kind of funny that our first two female investors that we’ve interviewed are probably the two best-known female investors in L.A. - Paris Hilton and Halogen Ventures Jesse Draper, who’s also L.A.’s first female solo G.P. When I first began learning about venture capital, 16 years ago, I learned about Jesse’s father, Tim Draper, who founded DFJ, and was an early investor in Skype, Tesla and SpaceX. I’ve been fortunate enough to chat with a little bit over the last few years, and nearly 700 companies have been through Draper University, their pre-accelerator program.
The reason I tracked Jesse Draper down for an interview was because I could not think of a single female investor in recent memory who has advocated so strongly and so clearly that it’s a smart business move to invest in female GPs. The way she’s articulated her argument her fund thesis strongly resonates with me. I hope to showcase other female GPs and investors in upcoming interviews.
I didn’t know you were the first female solo GP in Los Angeles - that’s amazing. At this rate, you’ll probably also be the youngest female G.P. to hit 100 portcos as well. To what do you attribute your success, specifically around fund construction and working with LPs?
There is no “perfect” science for collaborating with LPs. We currently have 85 LPs and 72 portfolio companies. It’s A LOT of conversations to manage with a lean team. We have built an incredible LP community and many are also involved in our portfolio as well. When I started Halogen, our focus was initially to invest more generally in consumer technology oriented female founders, and as we’ve raised additional funds, our focus has evolved. We have identified opportunities like the $7.5 trillion dollar “Future of Family” category, which is anything supporting families at work or at home. In terms of fund construction, we are always trying to iterate on better ownership and while we are early stage investors we also focus on getting into the best deals - an example of that is our investment in Babylist , the largest baby registry, now doing $900 Million on the platform. They were later stage and we still participated by raising an SPV.
2. If female founders are exiting twice as fast for 2x the return, let’s talk about some of the reasons that conventional VC firms, or even micro VC or super-angels just refuse to invest. You spoke to a lot of this in your great Medium piece 3 years ago - has *anything* changed since then?
Systematically, we are still facing the same issues and not much has changed unfortunately. We have actually gone from women getting 2% of venture funding to 1.9%.
I do think there is more awareness about this today than when I wrote that article (out of frustration). Those statistics are very well known within the VC community, however, outside of the insular world of VC, very few people realize how grim the numbers are. This is why we launched our recent #investinwomen campaign in May. We featured founders in all different industries from finance to climate to healthcare to childcare. Many investors don’t realize that investing in women is not a charity play, it is the biggest overlooked investment opportunity of our time. We need to break the mold and do something dramatic to change the trajectory and simultaneously make a lot of money. Investing in women will do this. The system will change when we fund more female GPs and continue to raise awareness about the trillion dollar market we are overlooking. If we fund more women GPs at the earlier stages, more female founders will get funded, more equitable workplaces will be created and more diversity will be incorporated organically into the corporate ecosystems of the next 10 years.
3. Let’s talk about the deal flow and founder side of Halogen; was the decision from the get-go to be 100% female founders, or was that an evolution, something that came about naturally? Will the firm always be consumer-focused?
I used to shy away from sharing this, but I’m a 4th generation venture capitalist. There are a lot of preconceived notions when you say you are a fourth generation of anything. I didn’t think I could go into Venture Capital because I was the first female in line even thought it is all I knew. I started in entertainment because my aunt was a successful actress and that’s what I thought women did. I then combined these 2 worlds and created the first tech talk shows where I interviewed Elon Musk and Eric Schmidt in a silly way before they were on the cover of magazines. I realized there was a big issue here so I created an initiative to interview 50% women in tech. Through this, I saw the huge funding gap in women and I quickly realized there is no shortage of women starting lucrative businesses and solving big problems, the issue was getting capital to those women. It started with interviewing female founders, then I started angel investing, and eventually raised my first fund and the pipeline has been built from there. Halogen will always be focused on investing in women, of course if there are other opportunities outside of the consumer space, we are open to hearing about those too.
4. I’m raising my first fund right now as a single dad of 2- what would you say is the biggest parenting hack you’ve picked up in the last 5 years?
As a working mother of three, you think I would have great advice but quite frankly, I do not. It sucks. Our childcare system is completely broken. Working families are suffering from this issue. This is the exact problem we are trying to solve with our new fund and honing in on “The future of family.” We are addressing the biggest issues facing families today, including the childcare crisis. Check out our incredible companies Weecare, the technology supporting 66,000 affordable childcare locations or Binti solving adoption or Hopskipdrive getting kids to school. We are working on this. We need more funding going towards these problems.
Let’s chat in about 10 years after we’ve made progress with solving childcare. : ) That said, I stick to the 5 mile radius rule. All school, work, kids activities and home need to be within 5 miles while your kids are young. While I travel a lot for work, this makes things a lot easier to be around for when I am home.
5. D.F.A. has always had a big music focus - I’m a former punk rock promoter - when you’re “in the zone,” whether it’s at the office, or in the gym, what tunes are cranked up loud, these days?
As a child of the 80s, 80’s pop 100 percent of the time. Also, I have a sizable butt so ‘Baby Got Back’ is like my theme song.
6. What advice would you give to female founders and also to female co-founders (i.e. with a male co-founder) in the current fundraising environment, who are probably facing a really challenging time right now?
You are not alone. Everyone is having a hard time raising. You just have to keep going. You can’t stop. You just have to meet with more people. It is not ever over. You will find the money. It’s a numbers game and a grind.
How Lead Zeppelin Is Driving Demand For Investment Firms (VC and PE)
After extensive conversations with numerous investment firms, including venture capitalists and private equity firms, we discovered a common refrain: while they relished meeting with Limited Partners (LPs), the prospect of cold calling and conducting large-scale email marketing and LinkedIn outreach campaigns to attract new LPs was far less appealing. This shared sentiment was the spark that ignited Lead Zeppelin.
We're thrilled to unveil Lead Zeppelin, a trailblazer in AI-infused lead and demand-generation strategies, designed specifically to alleviate this pain point for investment firms. Our services harmonize with your unique rhythm, orchestrating a powerful crescendo of connections that resonate.
Our offerings include meticulously planned LinkedIn services, a suite of comprehensive demand-gen services, and focused consulting sessions. We believe in the power of preparation, ensuring each interaction hits the right note for maximum impact.
We're not about quick, discordant gains; we're about a slow, powerful build, much like a legendary LZ track building to its climactic finale. Importantly, we are committed to full compliance with FINRA and SEC guidelines. You can learn more about our commitment to compliance in our Do's and Don'ts section.
Join us on this exciting journey and experience the transformative power of AI-enabled lead and demand generation. Let Lead Zeppelin be your stairway to lead generation heaven.
Our values:
1. No Contracts: We believe in the power of our services, not binding agreements. Our relationship with you is based on trust and results. Since you're only paying for one month at a time, you have the freedom to leave at any time.
2. Pay for Results: We're committed to delivering value. With Lead Zeppelin, you pay for tangible results and nothing else. Lead Zeppelin’s pricing reflects this commitment, ensuring a return on your investment.
3. LinkedIn Etiquette: We strongly believe that LinkedIn and similar social networks are platforms for community building, not for hard sales. We stand against using these platforms as a venue for selling. We understand that trust is the foundation of any successful business relationship. No one wants to buy anything until they deeply trust the company. We respect the community and prioritize building meaningful, trust-based connections over aggressive sales tactics.
4. No Setup Fees: We believe in transparency and fairness. That's why we don't charge any setup fees. You only pay for the services you receive.
5. Real-Time Analytics: We believe in empowering our customers with data. Our real-time analytics ensure you can see precisely how all of your campaigns are performing at any time.
Feel free to reach out, and grab a time to meet with the team here.
How To Get LPs & Investors from Shipping Manifests
When I first read that this was possible, I thought it was some hocus-pocus, and frankly didn’t even believe that it was real. Then, after doing quite a bit of research, I realized that shipping manifests are probably one of the coolest untapped sources of LP data out there.
Ever heard of shipping manifests? No? Well, let me tell you, they're treasure troves of data that often go unnoticed by most investors. Shipping manifests, the underrated gems of international trade, are full of helpful information – think details of goods, shippers, receivers, and the like.
Why am I, a VC, so jazzed about shipping manifests, you ask? These unassuming documents can act as a gold mine for finding potential Limited Partners (LPs) for a VC fund or other type of investment fund. Yep, you heard it right! They can reveal who's doing big business and shipping high-value goods across the globe. In this piece, I'm going to tell you how to tap into the wealth of info in these manifests and identify potential LPs. Buckle up - it's going to be an interesting ride!
Understanding Shipping Manifests
So, let's dive a bit deeper into these under-appreciated gems called shipping manifests. Every international trade item, be it the latest smartphones or grandma’s secret salsa recipe, generates a manifest detailing what's being shipped, who sent it, and who's the receiver.
Basically, it's the 'who'’ 'what'’ and 'where' of global commerce. Now, why should we care? Well, this data is practically a billboard announcing business trends and showcasing entities with serious capital. There's a good chance that a company regularly sending out or receiving high-value shipments has deep pockets. And guess what? Those deep pockets could potentially become LPs for your fund!
So, here’s how to get the data or even subscribe to it on a regular basis:
III. Obtaining the Data:
Alright, so now you're thinking, "This sounds great, but how do I get my hands on these manifests?" Great question! First, let's establish that this isn't a pirate movie – all data acquisition needs to be 100% legal and above board.
Generally, shipping manifest data can be sourced from government databases OR bought from third-party providers, who will save you time by doing the heavy lifting of data collection and cleaning. Costs? Well, they can vary, so it’s wise to shop around a bit. Always remember the investment is typically worth the potential rewards these data sets can yield.
Spot on, you're all set to grab this data! But where to start? Fret not; there are several legal avenues to obtain shipping manifest data. Let's look at some reliable resources:
1. Government Databases: IF you're willing to put in a little elbow grease, you can get your hands on this data directly from the government. The U.S. Customs and Border Protection's Automated Manifest System (AMS) is a goldmine. Here’s the tech requirements for submitting a request to that database via their Automatic Broker Interface. If you want to work with the government to review this data, here are the steps that you’ll need to take:
Obtaining the Data: U.S. Customs and Border Protection's Automated Manifest System (AMS) via Automated Broker Interface (ABI):
Securing shipping manifest data through the CBP's Automated Commercial Environment (ACE) using the Automated Broker Interface (ABI) might sound intimidating, but don't sweat it. Here's the breakdown of how to do it. (By the way, if you don't feel like doing all of this, if you’re working with Lead Zeppelin, we can refer you to a third-party team that can help you do this.)
Step 1: Register for an ACE Account: You’ll start by establishing an ACE Secure Data Portal account. You can do so through the CBP's website. You'll need to provide some essential information about your organization there.
Step 2: Apply for ABI Access: To access AMS data, you'll need to become an ABI participant. This requires completing CBP form 5106 and 7501, which can also be found on the CBP's website. You'll be asked for details about your company and the type of data you're interested in accessing.
Step 3: Undergo a Review Process: The CBP will review your application. This step could take a few weeks to a few months, depending on the CBP's backlog and the completeness of your application.
Step 4: Complete the Test Phase: If your application is approved, you'll enter a "test phase". Here, you'll connect your system to the CBP's ABI and send dummy transmissions to ensure everything's working as expected.
Step 5: Get Certified and Access Data: Once you pass the test phase, you'll be certified as an ABI participant. From here on, you can access AMS data in real time, right as it hits the CBP's systems.
This method requires time and patience but offers the most direct, comprehensive, and up-to-date access to shipping manifest data. Just remember to abide by all data privacy and confidentiality rules laid out by the CBP and be respectful of the data you're handling. This isn't a quick fix; it's about playing the long game.
2. Paid Data Providers: Third-party companies like ImportGenius, Panjiva, or Datamyne collate and clean this data for you, providing an easy-to-use interface. It’s the quicker, albeit costlier, option. If you’re in a hurry, this is the way to go.
3. International Trade Sites: Websites such as the International Trade Centre (ITC) or United Nations Comtrade Database also provide access to this data, albeit with less granularity.
[This is kind of a long article, so if you’d like to read the entire thing, the rest of it can be found here.]
Is she related to Tim?