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“When you look at the statistics on black female founders, I am certainly an anomaly,” says Dennis Woodard, CEO and founder of Partake Foods. “If Mercy Venture Partners hadn’t invested in us, we wouldn’t be here today.”
According to Crunchbase, companies led by Black women typically receive less than 1% of venture capital funding. The diversity tipping point of May 2020, when corporate America acknowledged that Black lives matter, saw significant investment in diversity, equity, and inclusion (DEI) initiatives. This also correlates with increased VC funding for Black-founded and led startups. Then came the DEI backlash, and the investment didn’t last long. According to Crunchbase, lending to Black founders decreased by 45% in 2022.
Since founding her business in 2016, Woodard has raised more than $25 million in funding. Over the past two years, Partake Foods, a consumer goods brand that offers delicious, wholesome snacks free of the top nine allergens, has achieved 69% revenue growth. The company increased the number of doors it sold from 6,000 doors to 14,000 doors. She built an incredible business, received industry accolades, loyal consumer support, secured high-profile partnerships, and even more investors came knocking on her door. But Woodard knows this isn’t the case for many Black women founders.
“It’s clear that in my ecosystem, DEI efforts have been deprioritized in the last year. So, yes, I’m a Black and Korean-American woman who raised $25 million for my startup. We’ve raised more than $1,000, but funding remains overwhelmingly limited. Black and brown people have access to capital,” Woodard said. “Less than 1% of VC funding went to Black and Latinx women in 2022. We are consistently overcoached and underfunded.”
As Woodard continues to grow and scale her company, here’s the advice she has to share with other Black women starting their own businesses:
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1. If you can’t stop thinking about your business idea, give it your all
“If your business idea keeps you up at night and forces you to get out of bed in the morning, it’s time to go all in,” says Woodard. “Building a business can be soul-crushingly difficult, so you have to believe in your abilities and have an unwavering commitment that this business will solve a need and make an impact.”
Image credit: Participate
Woodard was all in when it came to Partake Foods. She maxed out her credit cards, emptying out $401,000, and even sold her engagement ring. Building this business was a dream she couldn’t let go of. She decided to dedicate all of her time, energy and resources to making it happen. She also said she never considered quitting. “If the business concept no longer makes sense or something changes drastically, I’m going to quit. And I wasn’t going to quit just because the going got tough. I taught my daughter that tenacity and perseverance. What I want you to know is that more leaders need to embrace the key, frankly undervalued qualities.”
2. Stay focused – you can’t. all good
During the pandemic, more consumers are baking bread at home. So Woodard and her team decided to launch a line of baking products. She said she and her team are now pivoting to focus on packaged cookies and other pantry staples. She realized that she could have spent more time talking to consumers and studying the entire addressable market.
“It’s easy to get distracted by shiny objects,” Woodard said. “The reality is that you can’t do everything right. The Chobani I look at is a mission-driven company focused on its core product, yogurt. It’s a company that’s slowly testing other things. It’s a reminder to keep building your core business while experimenting with what you might want to build. ”
Partake Foods recently launched Classic Graham, which has resonated with consumers as a snack and food product, Woodard said. In my family, my sister-in-law uses Classic Her Grahams to make dough for delicious pie fillings.
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3. Understand your numbers thoroughly
“Unfortunately, we still see investors who rely heavily on pattern matching when meeting with founders. Investors may use past experiences and patterns to make decisions about future investments.” Woodard says. “They may think this will help them make better decisions, but they risk increasing bias in the process. If they haven’t seen someone solving a problem they don’t have, they may discount it,” and miss out on a great investment opportunity. ”
Woodard encourages the founders he mentors to really understand their numbers. She acknowledges that many founders, like her, wear multiple hats and have a solid understanding of what’s working and what’s not. She had to learn everything from basic accounting, return on marketing investment, and the details of what was happening to different customers. Still, she knows the hurdles are different for Black women founders when it comes to raising capital, growing and scaling their businesses.
“My biggest advice is to use your differences to your greatest advantage. Find investors, customers, and individuals who are aligned with your vision and mission and who believe in your abilities as a founder. Surround yourself with a community that supports you.” Unleash your business potential. ”
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