‘We back founders because they’re good…male or female is secondary’: Pieter Kemps, Principal at Sequoia Capital
During HerStory’s Women on a Mission Summit, Pieter Kemps, Principal at Sequoia India, addressed investments in category-creating startups, and why it is important to create equal investment opportunities.
is a name that needs no introduction. From ecommerce to fintech, and cryptocurrency, they are quite possibly everywhere as a venture capital firm. The mission Sequoia swears by? To help the daring build legendary companies from idea to IPO and beyond.
A Principal in the firm, Pieter Kemps, has been with Sequoia for over eight years advising on key investments in SaaS (software-as-a-service), fintech, and ecommerce. One of the things that stands out while looking at Pieter’s investment portfolio of companies is that several of them are led by women founders.
Something that Pieter was extremely clear about was that he was investing in these companies because the founders were capable, irrespective of gender. Global SaaS platform, Insider, achieved the coveted unicorn status earlier this month, and it is a company that he’d invested in.
An anecdote from the past
“Meeting so many founders every day is something that really excites me.”
In a way, it all starts after he founded his own company, Knowledge Notes. “I asked one of my professors where I could experience the biggest culture shock. And he said that from the Netherlands, the complete other end of the spectrum is Japan. So, I thought that’s where I’ll go,” says Pieter.
He lived in Tokyo for a while when he was doing an internship, and fell in love with Japan and Asia. When he started work in 2000, Pieter’s only objective was to find a job in Asia. In 2005, he moved to Singapore for two years, but the stay lasted for six years eventually. “When it comes to inspiration, that little anecdotal history is a tell-tale of trying to look for new experiences.”
As someone in the field of technology, what he finds most interesting about this space is that it is constantly evolving. There are new experiences, new business models, and of course, new technologies that are adapted over time.
Pre and post COVID impact on the startup ecosystem
Pieter says, “There’s been a flurry of investments in 2020 and 2021…The sheer activity and efficiency because of Zoom is evident. Now, one can have back-to-back calls and meet even more founders. Is it efficient in driving volume of engagement, new companies, and investment opportunities? Yes!”
For Sequoia and everyone else within the ecosystem, the COVID-19 pandemic has been an active time in terms of connecting people. It has had a different impact on different companies. Retail companies have had setbacks due to the lockdowns, so there has been a visible difference in the spike for businesses. As economies open and close, it is followed by both profits and losses depending on this factor.
However, companies involved in technology highlight another perspective. “There’s been this big theme about digital transformation for many years, and a lot of people have talked about it. During COVID, they realised that there has been too much talk and no action. So, they felt that they had to invest more in technology, automation, AI, and machine learning.”
The women vs male founder debate
“We back founders because they’re good founders,” Pieter says. “Whether they’re male or female is secondary.”
He has personally been involved in investments into companies led by founders who are women. And why did they invest? Because they felt that the business was great. Some of the key aspects Sequoia has looked at are – the idea, whether the company has picked the right market, and if they have a unique insight.
While Pieter agrees that the leadership styles are different, and there are strengths and weaknesses at both ends, the crux remains the same: a strong founder.
Despite the push for change, the percentage of women founders receiving funding is smaller than their male counterparts. “It’s not just a bottom of the funnel issue. How many founders do we see that are female? If that is only a small fraction, it’s a broader ecosystem issue that needs to be solved.”
Deterrents that women entrepreneurs face
Biases are something that are prevalent everywhere. It can be gender based or beyond, and has to be grappled with in order to be overcome. “Even when I look at a team of investment partners or advisors, there are some people that like adtech and some who prefer SaaS. The important thing is to be conscious of them.”
Something to note is that biases have to be kept in check. As someone who has invested in and closely worked with women founders through their journey, Pieter reveals that he has heard of them facing issues in the ecosystem. This is either in terms of being asked different questions, or seeing that male founders are able to raise money much more easily.
An open conversation that he has had with the female founders he’s worked with is whether there is a role that they themselves can play in that. He’s witnessed women having to be defensive because of the ecosystem being predominantly male. So, even when women-led businesses are reaping profits, they end up being almost apologetic for numbers that are great.
“Be proud of what you’ve built, have conviction in what you’re building and why you’re building it.”
A shout out to the sponsors of Women on a Mission Summit 2022, an Initiative by HerStory, by YourStory - BYJU’S, the presenting partner, and other sponsors - Kyndryl, Sequoia Spark, Zilingo, Atlassian, Akamai, Freshworks for Startups, and Netapp Excellerator.
Edited by Ramarko Sengupta