XFactor Ventures Launches Fund 2: Female Founders Investing In New Female-Founded Companies

By Amit Chowdhry ● June 1, 2019
  • XFactor Ventures announced it has established the $8.6 million Fund 2, which will be used in investing in new female-founded companies
  • The Fund 2 will invest $150,000 into 53 companies in its lifespan.

Last year, venture capitalists invested $109.3 billion in companies with all-male founders while all-female founded teams just received $2.86 billion. XFactor Ventures is working towards closing the gender gap by setting up funds where female founders invest in new female-founded companies

XFactor Ventures is a venture capital firm that is focused on making pre-seed and seed stage investments in companies with at least one female founder that are pursuing billion-dollar market opportunities. Recently, XFactor Ventures announced it launched a second fund with $8.6 million in capital commitments.

This fund is being led by current successful female founders who are leveraging their operating backgrounds, insights, and expertise for providing capital, connections, guidance, and mentorship to the companies in which the funds invests. Collectively, the team has founded more than 28 companies and raised over $550 million in venture capital. Plus they have hired thousands of employees.

XFactor’s “Fund 2” has nearly tripled in size for the $3 million Fund 1 and more than doubled the number of female investment partners from 9 to 22. The Fund 2 will invest $150,000 into 53 companies in its lifespan.

“When we started XFactor, we saw the opportunity to build the largest network of current female founders investing in new female-founded companies pursuing billion-dollar opportunities,” said XFactor investment partner and co-founder Anna Palmer. “We successfully proved this out with XFactor 1 and, given the current landscape of women in VC and limited venture money still going toward female founders, we set out to build Fund 2 on a much larger scale.”

In XFactor’s two years of existence, the firm made 28 investments and the portfolio is already seeing signs of success as many companies are raising follow-on capital at substantial increases in valuation. Some of the notable companies in the portfolio include New York-based Chief and MixLab, San Francisco-based CourtBuddy and Vinsight, Seattle-based The Riveter, and New Orleans-based BATON Financial.

“As founders themselves, each investment partner has the insight to know who has what it takes to succeed, the insights and willingness to take a bet on entrepreneurs at the earliest stage, and the experience to help those companies succeed,” noted XFactor investment partner Chip Hazard. “XFactor 2’s team will increase to 23 investment partners, including myself, and expand across 6 cities. Our Industry expertise ranges from B2B Software, to FinTech, AgTech, Healthcare, to consumer marketplaces and products. This gives us the ability to dive in head first and be helpful to our portfolio companies on a much deeper level.”

XFactor Ventures has three main goals: 1.) make a difference for the next generation of female founders by providing them with needed capital, connections, guidance, and mentorship to build billion dollar companies 2.) increase the ranks of female investors in the venture and angel investing community 3.) generate venture returns by making investments in companies that have the opportunity to build significant scale and create value accordingly.

Palmer also pointed out that XFactor Ventures was built with the belief that if there are more women investors, then more women founders will get funded. “Each of us has been through the funding process and are here with the goal of growing the pool of female investor talent while also opening our unique networks to the wider female entrepreneur community,” Palmer added.

Some of the investment partners involved in XFactor include Aihui Ong (EdgLife), Allison Kopf (Agrilyst), Amanda Bradford (The League), Amy Nelson (The Riveter), Aubrie Pagano (Bow and Drape), Danielle Morrill (Mattermark), Erica Brescia (Bitnami), Heather Hasson (FIGS), Jessica Mah (InDinero), Jilliene Helman (RealtyMogul), Joanna McFarland (HopSkipDrive), Jules Pieri (The Grommet), Kate Ryder (Maven), Liz Whitman (Manicube), Mada Seghete (Branch), Nanxi Liu (Enplug), Natalya Bailey (Accion Systems), Nicole Sanchez (Credit Hero), Ooshma Garg (Gobble), and Trina Spear (FIGS).

Featured photo: Anna Palmer / Credit: XFactor Ventures