Women in start-ups

Zdena Macháčková

December 22nd, 2023

Reflex Capital → Blog → Women in start-ups

The feminist movement has been fighting for more than a century and these issues are still relevant. One can either go on strike or go one’s own way. That is my case. I have never known gender disadvantage and have gone my own way, career-wise and salary-wise. Maybe that’s why I’m part of the predominantly male management of Reflex Capital. I don’t go on strikes.

And on the days when women are on strike, Reflex Capital is closing a handshake for the first time in a long time about joining a start-up where the founder is a woman. Karin Fuentes and her DIGITOO.

I’m proud of that!

A 2009 research conducted by researchers at the Institute for the Study of Labor (IZA) in Bonn showed that startups that have a low proportion of female employees compared to the industry average have a significantly shorter survival rate = they end their operations approximately 18 months earlier than companies with an average proportion of women.

What is the average of the Czech start-up scene? I think this is hard to measure and according to our portfolio I would say that the lifespan of a truly aggressive startup before it is successfully exited or absorbed by a corporation is around 5 years. It’s usually led by a male brain. This gives me the answer to why there are so few women in this industry. Women usually have other priorities and 5 years plus another 18 months is a long time. Suddenly there’s a real child in place of the startup kid and your life becomes a battle of priorities.

Brain and hormones or man and woman.

Regardless of gender, the most important attribute that matters first and foremost to an investor when joining a company is the personality of the founder. Of course, there is always a great or truly unique product with high growth potential, scalability, etc. But it’s always the founder who builds a professionally balanced, capable and ambitious team, as well as the mutual chemistry between the investor and the startup. It is that relational chemistry that is important in Reflex Capital’s decision-making process.

A typical interview of a founder – regardless of gender – in Reflex takes place in such a way that Ondra Fryc asks questions that take people out of their comfort zone. And he responds in kind. Uncomfortableness, even a certain incorrectness, is not the norm in today’s world, is it? It’s actually quite socially unacceptable. In fact, you’re not even allowed to wander outside of generally non-confrontational topics, let alone ask about personal life, marriage, vacations, or how a woman can single-handedly invent, organize, and pull off a start-up and have three kids at the same time? Is she even a woman? And why does he even care, shouldn’t it be more about the company I’m presenting? Well, it shouldn’t. It’s always about the people. An investment partnership is like a marriage. It’s long term, you have to know each other, you have to understand each other. On a date with a life partner, I’m also interested in everything. But mostly, it’s not even about the personal issues, it’s a certain amount of breaking the social norm and generally accepted rules of social conversation that brings you to a level of honesty and truth in conversation. For it turns out that it is in that discomfort zone of honest questions that the personality of the founder gradually emerges. And the founder’s personality in turn shows the potential of the startup!

I have to admit, the discomfort works. What I observe is that when the interview with the founder, aka the informally frank conversation, ends, the same thing happens every time. You get flooded with feelings! The brain doesn’t work, but the feelings of the first date come. Either nothing. And that’s it. Or the endorphins wash over you, everything turns pink, serotonin levels rise until they hit the spotlights in your brain, which suddenly flash as if to say – well, that’s it! This is what we’ve been looking for.

This time it’s not him, it’s HER! Karin, welcome to the Reflex Capital family! And best regards to Iceland!

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