Her Capital co-founder Gail Wong
Last Monday, Singapore-based Her Capital’s co-founder Gail Wong sent an email to inform us that the seed fund targetting female founders in Southeast Asia was shutting down. As per a Deal Street Asia report of August, there were differences between Wong and her co-founder Tanya Rolfe.
“I am entering the last quarter of 2021 with the optimism and possibility of new beginnings, having filed the paperwork to close Her Capital’s doors last month formally. I wholeheartedly believe in the hard decisions taken and give thanks for the many lessons learned,” she said in the email.
“I am excited to continue building my original vision of inclusive finance — investing for a better world, bringing women/ feminine energy into the economy’s centre, and the conversations needed to facilitate that,” she added.
Also Read: Her Capital invests into AI video interviewing platform Neufast
e27 spoke to Wong to know what exactly led to the shutdown of Her Capital and about her new projects.
Edited excerpts:
You announced the launch of Her Capital with a target size of US$10 million in July 2020. However, you couldn’t raise funds for this. Why was it hard to raise money and was there a reluctance among Limited Partners to support a female VC fund in general?
Launching a fund as a first-time manager amidst the COVID-19 pandemic was never a slam dunk. Much has been written about the challenges — lack of track record and entrenched investment requirements like ticket size/fund size, etc. Some of these do not favour female general partners who are a minority in the industry.
I was prepared to move forward on the basis that first-time funds raise and invest simultaneously in the early years.
Her Capital had seen investor interest and was working towards a first close earlier this year. The decision to stop was driven more by concerns around the partnership’s ability to deliver on our commitment to LPs and founders. Fiduciary obligations and integrity are paramount to me, and sometimes that involves hard choices.
As per the Deal Street Asia article, there were differences in working styles and views on the fund management and investment process between the co-founders/general partners. What is your comment on this?
Over time, it became clear that the partnership was not aligned around Her Capital’s thesis and other fundamental operating principles. With every yin/yang partnership, there is a fine line between being complementary and untenable. There were stark differences in abilities, working styles and opinions about making the fund a success.
Aside from the fund thesis and vision, there were also investment process and team culture issues.
What will happen to your existing portfolio companies?
“The fund was never established, and no capital was called. Her Capital was a fund manager that ceased operations before the fund (usually a separate entity from the fund manager) was formally established to take in external capital. The two investments (e.g. Neufast) announced under the Her Capital brand were initially privately funded, with the intention to transfer those investments to the fund entity at a future date. The investments remain and will be supported like other angel investments in my portfolio.
What is your next project? Do you plan to set up a new fund with a new team?
I remain committed to direct and mobilise capital inclusively. Starting a fund is not the only way to drive that — setting up a fund requires the right partner(s) and strategy. This is an opportunity to refine that and identify other capacities within the ecosystem to tackle that mission. I will keep you posted on this.
Do you think there is a conducive environment for female-led startups to survive and thrive in Asia?
In my opinion, there is a healthy supply of education, raw talent, and startup support (incubators and accelerators) in developed economies in Southeast Asia.
Also Read: These four women are changing the venture capital landscape across Southeast Asia
There are countries where network, connectivity and access are more challenged, especially for female founders. But the pipeline is there. The data has been there, too, for some time.
Along with the supply of capital, a conducive environment comes about through a willingness to shift mindsets. You cannot do what you cannot see — I believe the onus lies on the investors to awaken to the opportunity in examining their investment frameworks/lens. It’s not an easy fix, but those who do the work will reap the spoils.
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