Joining me on the show today is Catharine Dockery, the founder behind Vice Ventures.
A fund that invests in early stage startups from non-traditional verticals including cannabis, alcohol, CBD, e-sports, addiction recovery and sextech.
Catharine was going through a series of interviews for new jobs in the world of VC and was pitching in an alcohol brand only to be met with the same feedback on repeat; every fund has a vice clause.
And basically that meant that whether or not the opportunity was major, they couldn’t invest. And that’s how Vice Ventures was born.
In the fast-paced world of venture capital, raising funds can feel like a wild rollercoaster ride. Picture this: a founder successfully raising around $25 million in just five months. Sounds impressive, right? But what comes next? Do they start scouring the market for potential brands to invest in, or do opportunities come knocking at their door?
For this founder, the journey started long before the official fund closure. With a supportive legal team guiding them through the intricate maze of regulations, they managed to create buzz around their venture even before it was fully operational. Thanks to some media coverage—albeit a bit early—they found themselves in a unique position within the industry. Imagine the excitement of having numerous founders reach out, eager to share their innovative ideas and seeking investment.
The Initial Surge of Interest
Once the fund officially closed on June 27, 2019, the floodgates opened. Founders started approaching her with their projects, and she quickly found herself immersed in discussions about innovative ideas that had been struggling to secure meetings with established CEOs. The sheer volume was staggering, with over 2,000 companies reviewed in just the first year. Talk about a whirlwind!
During those initial months, she was a one-woman show, balancing meetings and calls from dawn till dusk. It’s wild to think about managing that much communication—averaging several pitches a day from passionate entrepreneurs. From those 2,000+ meetings, about 25% piqued her interest, leading to investments in a handful of standout brands.
What Catches a VC’s Eye?
When it comes to what stands out in a pitch, she emphasizes the importance of attention to detail. It may sound trivial, but getting the investor's name right is crucial. If a founder can’t even manage that, it raises red flags. Once that basic courtesy is checked off, the next step is to evaluate the strength of the brand itself.
A compelling example she shared is the sparkling water brand, Resource. With its nostalgic branding—a throwback to childhood recesses—it struck a chord with her. In a matter of hours, she knew she wanted to invest. The emotional connection the brand created made it an easy choice.
Another notable brand in her portfolio is Parade, a clothing company that has captured her heart. The founders are not just business partners; they’ve become friends, sharing calls at all hours to brainstorm and strategize for success.
Building Relationships
Her approach to investing goes beyond just financial support. She fosters strong relationships with founders, believing that collaboration is key to success. A recent gesture of sending a cake to celebrate an employee's first week perfectly illustrates the importance she places on culture and connection within her team.
So, what if she finds herself interested in multiple brands at once? There isn’t a strict quota guiding her investment decisions. Rather, she emphasizes the importance of the brands’ growth potential and how her fund can help amplify their reach.
The Challenges of Venture Capital
Of course, the road isn’t without its bumps. Navigating the regulatory landscape can be daunting. For instance, early investments in companies like Resource came with uncertainty due to evolving laws. However, with founders who are determined to succeed and willing to engage in dialogue with policymakers, there’s hope for positive change.
Advice for Aspiring Investors
For those looking to dip their toes into angel investing, her advice is clear: ask questions. Understanding a brand's distribution plans, sourcing methods, and consumer testing processes can provide crucial insights. Investing is inherently risky, but gathering as much information as possible can help mitigate that risk.
Empowering Women Entrepreneurs
When it comes to supporting women in business, she recognizes the importance of networking and mentorship. There are countless funds dedicated to investing in female-led ventures, and finding the right connections can open doors. She encourages aspiring women entrepreneurs to research their industry and reach out to founders for advice.
An Empathetic Approach
What truly sets her apart is her empathetic approach to investing. Rather than dismissing pitches outright, she takes the time to meet with founders, even if their ideas fall outside her fund's usual parameters. Her goal is to offer support, whether through direct investment or by connecting them with other investors.
In a world that can sometimes feel transactional, this founder proves that empathy, connection, and a willingness to listen can create a positive ripple effect. And that’s a beautiful thing, don’t you think?
