Emerging Fund Managers Need Branding That Stands Out
Unless you like attracting run-of-the-mill SaaS startups
When it comes to reaching more underestimated founders, venture capitalists and investors need to meet them where they’re at. VCs can’t rely on traditional pipelines to find underestimated talent, let alone founders on the cutting edge of emerging markets.
Yet we still see the same institutions invest in the same founders—seemingly regardless of their history of being irresponsible or not profitable.
But there are some investors out there who get it. For example, I’ve seen some very cool funds that clearly brand themselves to attract women. Funds like Female Founders Fund have certainly paved the way for Esme of Considered Capital and Carrie Colbert of Curate Capital.
They use colors, messaging, and marketing tactics that many women entrepreneurs are already familiar with. They look nothing like the established VCs such as Sequoia or a16z, who have been investing in the same hoodie-clad bros for decades.
Their visual identities communicate an unwavering conviction to their theses and identities.
When I look at their messaging and branding, they aren’t just appealing to women. Their marketing communicates that they understand the founders who need a little extra explanation in order to make confident decisions they know they can execute.
Their marketing says “We know what it’s like to be in a room that doesn’t look like you.”
It says “We love a curated Instagram feed, because building and investing can still be aesthetically pleasing.”
It says “You might think you have to have everything figured out, but you really don’t.”
The fund knows exactly who they’re talking to.
Why VCs Should Care About their Brand
The majority of VC branding doesn’t communicate much about personality or conviction. Maybe it’s because the fund managers themselves lack a bit of spice. Maybe it’s because fund managers carried over their dry, bland sense of style from their traditional finance backgrounds.
And maybe that’s why so many of them love investing in the same archetype. “Oh wow! The guy is wearing a hoodie to a meeting! Look at how contrarian this guy is!”
…wow?
Yes, I’m making a lot of assumptions here about the rooms I haven’t been in. But in the year 2022, how many VCs have bold brands that target founders (and possible LPs)?
I get it: SaaS certainly has a look. Sans serif, soft edges around the font. Probably a shade or gradient of blue. Banking and finance has a look too: serif font, neutral colors, and the logo may be the fund name itself.
I’m sure there’s all kinds of psychology and UX/UI design principles that go into creating these logos. And they’ve attracted the same, “correct” people for decades.
Emerging fund managers can certainly follow that proven path. But if they want to differentiate themselves outwardly, they will need to put more consideration into their visual branding.
Considered Capital and Curate Capital, for example, use design techniques that signal a female friendly vibe. Both use mustard yellow and dusty rose pink in their branding and on their websites. The language on their website and social media focuses on collaboration and learning, instead of finances and self-congratulations.
However, compared to the websites of a handful of female-focused business coaches’, anyone might mistake these funds for another six-figure influencer. But that’s the power of branding. These women have uprooted a familiar branding style that communicates a desire for a balanced, beautiful lifestyle and planted it firmly in the world of early stage investing.
It’s like a beacon for first time female entrepreneurs. Their branding says:
“Hi there, female founder! Are you struggling to balance your mental health with your desire to build a gamechanging company? Not sure what a post-money valuation is? Has your curiosity been overlooked in Zoom webinars with ‘founder-friendly’ investors? Are you building a solution that can help half the world population thrive, but you’ve been told it’s too niche? You’ve come to the right place.”
The Big Picture
I’m not saying VCs can’t successfully reach female founders, underestimated founders, or niche founders without beautiful branding. There are all kinds of ugly and plain VC brands that do just fine. And there’s no guarantee a flashy, beautiful brand will receive more funding or see greater returns.
But at least it feels authentic. When I look at Esme and Carrie and their funds, I know exactly who they are and what they care about. It’s rare to find such clear, assertive messaging in VC brands.
Maybe VCs don’t want women and underestimated founders to find them, and that’s why they haven’t bothered to update their messaging or branding. Maybe they’re hoping to attract the same, run-of-the-mill SaaS company that does an average amount of world-changing. Maybe they’re comfortable investing in companies and founders that are well-established and well-networked.
But if emerging fund managers truly want to attract gamechangers, contrarian thinkers, and people who don’t look like them, they need to make themselves stand out in the big, vast VC sea.