The Underestimated - Issue 02
The Diversity X newsletter showcasing the underestimated founders making a positive impact in the world and keeping you up to date on the Diversity X journey.
I have exciting news to share: You can now read The Underestimated in the new Substack app for iPhone.
With the app, you’ll have a dedicated Inbox for my Substack and any others you subscribe to. New posts will never get lost in your email filters, or stuck in spam. Longer posts will never cut-off by your email app. Comments and rich media will all work seamlessly. Overall, it’s a big upgrade to the reading experience.
The Substack app is currently available for iOS. If you don’t have an Apple device, you can join the Android waitlist here.
What’s is coming up in this issue?
📖Industrial Gaslighting
📰 Monthly update on what has been going on with Diversity X
🔦Spotlight on a Diversity X Founders Community member
📆Upcoming events and plans
Industrial Gaslighting
We have all seen the reports relating the VC 💰going to underestimated founders. Depending on which report you read, we are talking single digit percentage of overall VC investments into early stage underestimated founders. You know, investment into the stage of a company which is like a newborn baby, which needs all the help it can get. Each year, there are a number of such reports which clearly state that VC has a diversity issue (in terms of both equitable allocation of capital, and also those making investment decisions). And this has been going of for years.
You’ll also find statements in these reports on the lack of diversity being recogised as an issue. You’ll also find statements around how this needs to change. But this is usually either preceded by or follow something along the lines of, and I paraphrase here “but there is signs of progress as [x] category of underestimated founders have seen investments into them rise by [insert your low single digit number] percentage, and this is a cause to celebrate”. OK - it doesn’t quite say it in so many words, but here is the crux of this issue - the problem is known, understood, and acknowledged. So is minimal percentages increases each year really a sign of progress, or is it just industrial gaslighting……”yes, you underestimated founder, we are making progress so be happy with your lot”. When I lived in the US, I heard similar in terms of “we’ve had a black President, so be happy”. Like one black President wipes out all the other issues around diversity and race.
I founded Diversity X to address an issue on two sides of the same coin. Firstly, the grossly disappointing percentage of VC 💰💰allocated to underestimated founders. Secondly, the lack of VCs with a diverse investment committee representation. Basically the same people backing the same people but telling the world how they find the outliers.
The Diversity X guide for underestimated founders on the signs of VC Gaslighting
Spotting the signs of VC Gaslighting is easier than you might think. Signs (not exclusively) include:
A lack of openness and transparency. This may be with immediate in a one-on-one relationship or it may be at a level involving an entire Investment Committee.
A reluctance to minute meetings or draw-up file-notes. We should not assume this is down to a lack of management skills. It could be intentional and therefore far more serious.
Refusal to follow policies unless it suits the VC.
Drip-feeding information or failing to provide full facts (which we have historically described as ‘setting a person up to fail’) or repeatedly re-scheduling meetings or withholding important information.
Moving the goal-posts or changing elements of normal questioning and requirements compared to those whom the VC money is typically invested.
Springing surprises ie: canceling meetings last-minute, failing to share data or advice in advance on what the purpose of the meeting is and what the likely outcomes may be.
Knee-jerk reactions over minor issues where a discussion or an informal meeting will have resolved any misunderstanding.
Instant dismissals of idea or founder without following due process afforded to the well represented and sometimes, overestimated founders.
Undermining behaviour intended to destroy an underestimated founder’s confidence.
Founders - feel free to share your other identifiers.
News from the Diversity X journey
Highlights over the last month
💥 Our Founder’s Community is growing - 67 (at last newsletter issue date) → 88 today!
💥Spoke +30 founders
💥Announced partnership with Airmeet - this allows Diversity X to host pitch days and other virtual and hybrid events…keep following us for further information.
💥 Given allocation on by 3 startups totalling up to £150k allocation. Building syndicate to support allocation. All EIS eligible.
💥Rebranded(?) the Diversity X Ecosystem to the Diversity X Care Support. Why? Ecosystem just feels so BS. We provide support - let’s just say that.
💥Monthly founders call with lots of discussion on challenges with sales.
💥 243 views of the first newsletter and 110 subscribers (to date).
💥Working on the Diversity X Advisory Board (if interested, email diversityxvc@gmail.com) and working on building the team.
💥And rounding up with a shout out for the people supporting the journey we are on - and being generous with their time: The EUVC Team - David and Andreas; and Andy Ayim and the Angel Investing School team (they have a few places in their April cohort, so if you want to learn how to angel invest then sign up before Wednesday 6th); Flavia Richardson; and most recently, the brilliant and helpful Gautam Kumar (every call with you is like gold). Thank you to everyone who has supported the journey so far.
Meet the Underestimated
Muna Nageh - Circle of Style
The Founder:
Muna is the founder of a subscription business for luxury preowned fashion, Circle of Style.
Prior to founding Circle of Style, Muna led the teams that created the Ad of the Decade, the world’s number one training app for Nike, and turned long-term decline into growth on 3 brands.
Let’s save the planet and look fabulous whilst doing it! If you’d like to be a Circler, sign up at circleofstyle.com.er path
The Startup:
Circle of Style brings stylist expertise together with AI to make shopping secondhand effortless. A subscription model that’s grabbed the attention of customers, investors, journalists and celebrities. They are at the very beginning of an exciting journey to democratise personal styling, bring human expertise together with technology, empower women with fashion that expresses their unique style, whilst not doing harm to the planet.
Within 6 weeks of opening Circle of Style acquired 500 subscribers with no paid marketing. They have been featured in Harpers Bazaar, Stella and Sheer Luxe. Circle of Style is now partnering with Netflix to supply them with meaningful, pre-owned gifts for their talent, producers and directors.
Let’s save the planet and look fabulous whilst doing it!
💥What can you do to support this startup? They always looking for supporters, and advisors and have plans to grow their team soon. If you think you have something to add, particularly if you have a data analytics and AI/ML development background, then contact Diversity X to make the introduction for you. If you are an investor, reach out and Diversity X can make an introduction.
Upcoming Events
Virtual Pitch Day - Tuesday 17 May (founder and investors - email for further information).
And that’s a wrap for this month….
Reach out with any questions to diversityxvc@gmail.com
INVESTORS - let’s chat.
Underestimated Founders - come join a community that is welcoming and a safe space.