Fundraising while Pregnant: An interview with the founder of Archer Roose.
In 2023 less than 25% of all Venture funding went to female lead teams and only 1.8% went to companies with all-female leadership1. We've all heard the stories of an investor trying to figure out if a founder is or may become pregnant without asking directly. Or the VC who says your company might be "more fundable" if you had a male co-founder. Where do these biases come from?? They certainly don’t come from the data!
The numbers show that investors tend to miss the superpowers that women and maybe mothers in particular bring to leadership. Businesses with lots of women tend to outperform companies run by men on sales and return on equity2. A Harvard Business Review showed that women outperform men in most leadership skills including resilience, bold leadership, results driven, inspiring and motivating others and striving for self-development3!
The following conversation with Pilea client and Archer Roose founder, Marian Leitner, highlights some of the bias women experience as founders, reveals the powerful edge moms have that investors may overlook and includes some practical tips for anyone fundraising while pregnant!
Marian has raised capital for Archer Roose during not one but two pregnancies, first with a bridge round in 2020 and just recently closing her Series B while pregnant with her second child. Pilea asked her to share a bit about her experience with our community.
Pilea: Give us a quick plug about your company!
Marian: Archer Roose is the fastest growing wine company in the U.S. and the preferred wine for Gen Z and millennial consumers. Built upon the values of quality, transparency and sustainability, we are bringing a global portfolio of wines to consumers in formats to fit their lifestyles. Our investors and partners include Hollywood powerhouse, Elizabeth Banks and Constellation Brands. You can find our wines on JetBlue and in Target, Kroger, Regal Cinema, Dave & Busters, Sprouts and stadiums around the country.
Pilea: How did you think about disclosing or not disclosing your pregnancy with investors and other stakeholders during your raise?
Marian: To me, this is the same as any medical condition and the question of disclosure is in direct correlation to your ability to provide business continuity. If you've built a strong support system around you, you're not planning on a long leave, and you have strong people in leadership positions that will provide said continuity, then it's less of an issue. I was very visibly pregnant while raising but I only discussed it when addressed directly.
Pilea: What are the most common questions you got from investors regarding your pregnancy?
Marian: How long would I be gone? Would I come back? (Which was crazy - Archer Roose is my first child… of course I am coming back!)
Pilea: What kinds of reactions or concerns did investors express upon finding out you were pregnant?
Marian: Look, as a woman raising, people are always looking for a reason to say "no." Pregnancy is just another reason. Fatherhood is considered a bonus for men, it makes them seem more stable. Investors do not extend the same benefit to women though I can assure you there is not a single thing that women wouldn't do for their children. And given how seriously I take the opportunity to provide financial security to my children I can assure you that having children has made me dig deeper and push harder than I could have ever imagined.
Pilea: Did you make any changes to your fundraising strategy or logistics due to your pregnancy? (Timing of meetings, online vs. in person etc.?)
Marian: I did not - although I would advise people to avoid raising while postpartum in particular as much as possible!
Pilea: What other challenges have arisen in your business due to your pregnancy and how have you addressed them?
Marian: We are not meant to raise children alone. Nor are we meant to handle newborns alone. Especially while running companies. Get as much support as you can for yourself. You need to heal and you need sleep to do so.
Pilea: Did you take mat leave? How do you prepare yourself and your team for that?
Marian: I took one week of mat leave but took no external meetings for five weeks. I tried to get all strategy work done before I left and had the team report out to me in a standard template each week I was on mat leave.
Pilea: Any advice for other founders in your position?
Marian: You're not crazy. It is hard. But you will be able to do things you never thought you could do because you're not doing it for just yourself anymore.
Pilea: What would you candidly wish you could tell investors who are hesitant to invest in women and particularly those who may become pregnant?
Marian: I think most startups fail because founders live in a fantasy world. They hold out for ridiculous valuations, they get stressed and are not able to make decisions. Issues that arise when you lose all perspective. I have never found a working mom to suffer from this brand of narcissism. You become extremely pragmatic and will figure it out because you're able to creatively problem solve in a way that feels super human. Harness the power of the mama bear. You'll be shocked by what she can deliver.
Marian’s experience mirrors the reality for many women in the workplace whether you are a founder or not. She spoke to several factors that make women great leaders. They are pragmatic, resilient and are on average more effective at harnessing a team and cooperating in service of a shared vision. And that mama bear energy may just be the edge every investor is looking for in a founder that will take their company to a successful exit.
What do we think? Is it time to give women the place at the table they have earned?