I raised $9.75 million for my health and wellness company as a Black female founder. Here's how I did it and found the right investors.
Lauren Anzevino
- Vanessa Rissetto launched Culina Health in February 2020 with her cofounder, Tamar Samuels.
- The duo has raised $9.75 million in VC, a major accomplishment for two Black female entrepreneurs.
- As of 2022, only a few hundred Black or Latina women founders have raised $1 million or more in VC.
Twenty years ago, Vanessa Rissetto didn't know how food could affect a person's health. Growing up, her Haitian mother, who was known for showing her love through cooking, prepared most every meal for Rissetto. So when she moved to college, it was the first time Rissetto was responsible for feeding herself. The nights of pizza and fast food made her wonder how food could potentially harm her health.
Today, Rissetto is the cofounder of Culina Health, a digital platform that connects clients with nutritionists for virtual sessions, which she launched with Tamar Samuels in February 2020. They've raised a total of $9.75 million in venture-capital investments.
This is a significant achievement for Rissetto and Samuels: As of 2022, only a few hundred Black or Latina women founders have raised $1 million or more in VC investments, according to Project Diane, a biennial demographic study on Latina and Black women in entrepreneurship.
Black and Latina female founders in the health and wellness space are getting more funding than in any other industry, according to the Project Diane report, which highlights more than 750 Latina and Black women-founded startups that have received outside funding.
"Startups in this space have been well-funded since the pandemic, accounting for $1.3 billion in investment since 2020," the report says.
In an interview with Insider, Rissetto shared her fundraising experience and the importance of investing in women of color. This is an as-told-to story based on the interview that has been edited for length and clarity.
COVID-19 gave us opportunities to grow
When COVID-19 hit the US in March 2020, telehealth became patients' go-to healthcare option. As a business that uses insurance, it was the first time Culina telehealth services were reimbursed at the same rate as an in-office visit. That allowed us to connect with more clients and scale.
We had a strong conviction that we could raise VC during 2021 because of our 2020 success: $934,000 in sales and $48,000 in profit, all without spending a single dollar on marketing.
There was no shortage of patients who wanted to see us and that's continued today. From the time we launched to today, we have grown from 500 sessions a month to nearly 2,000 sessions a month.
We've since closed pre-seed and seed rounds worth $9.75 million in total, and the company is valued at $21.5 million. Investors include Healthworx, the venture arm of the insurance company Blue Cross Blue Shield.
Our North Star right now is a potential Series A, which would allow us to improve our product and vision, build our team, and expand to more sessions.
Investors can serve different purposes
Lauren Anzevino
When you're raising money for a business, there can be pressure to find strategic partners. While intentional partnerships are important, founders should also recognize that investors can serve different purposes.
Especially if you're in the early stages of the business and you're trying to get something off the ground, you've just got to get the train out of the station. Don't get in your feelings about who's giving you money, because if someone's writing you a check, that's a signal to other people that you're valuable.
Long-term relationships with investors come from those who truly want to see you succeed. And leveraging investor relationships can mean anything from gaining access to their extensive network, bouncing ideas off of each other, or reviewing financial models before a board meeting.
We talk to every investor at least once a month so that there are no surprises. They know what we're doing and we can ask for help. Those constant conversations get them more bought-in to our goals.
The importance of investor support for women of color-founded businesses
In the beginning, fundraising was hard for me because it was something that I've never experienced. I had to learn and not take anything personally.
But the intersectionality of race makes investment opportunities for women of color especially difficult. White men see white women in their homes and they see Black men in the locker room, but they don't see Black women as often. And I definitely felt a lot of that.
Luckily, I have found people who get it — they get what I want to create with Culina, and they get me.
Feeling seen by our women investors and investors of color has made a huge difference. And I hope as the industries become more diverse, more founders can feel seen and represented, too.
There are tons of Black women founders in healthcare. We know how to do this work, we're getting market share, and you can't ignore us anymore.
from Business Insider https://ift.tt/iXrGgeS
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