Mastersfund Newsletter: January 2025
Happy New Year from all of us at Mastersfund.
As 2025 begins, Gillian Muessig and Anne Kennedy, managing directors at Mastersfund, shed light on why they remain driven, how they are changing the norms of venture capital, and some moments from 2024 that surprised them.
A New Year, A Look Back: Reflecting on 2024 with Anne Kennedy and Gillian Muessig
Interview by Nhã Vuong, Financial Analyst, Mastersfund
Nhã: Hi Gillian, hi Anne. You spent a lot of 2024 on the road and in the air, meeting investors, identifying high value investment opportunities, and driving the mission of Mastersfund forward. Thanks for sharing your story and the moments that made 2024 memorable for you.
My first question is this: You both could easily be enjoying retirement anywhere in the world. Instead, you choose to stay in the game and build Mastersfund. What drives you in this work?
Gillian: Anne and I have a strong sense that the world is better off when there is good balance. In the world of venture capital, there remains a massive imbalance of the flow of capital. Mastersfund exists to increase the flow of capital to women, which enables women to solve pressing problems and build scalable corporations. From 1946 to 2023, women were awarded merely ~2% of venture capital. In 2024, early reports indicate that women received ~5% of venture capital – a 2.5X increase in one year! We’ve been working to improve balance in the flow of capital for a decade. Seeing this jump is gratifying.
Nhã: I often hear people say to you, “I want to be like you.” For those who aspire to follow in your footsteps, what does it really take to be like you?
Anne: Being Anne and Gillian takes indefatigable energy, a positive attitude under all circumstances, and a reliable partner in whom we have complete faith and trust. We trust one another without reserve, which provides each of us the ability to put 100% of our energy and efforts into what we are doing, never worrying about whether the other partner is doing the same.
In order to fuel that energy required to pursue our goals, we take good care of ourselves when we travel. For example, this year, we circumnavigated the world three times, with an extra round trip to Singapore and several domestic trips thrown in for good measure. While travel can take the stuffing out of you, especially as we have both been at this for many decades, we set a cadence that includes one day of self-care in every four. We land in a city, tend to meetings for two days, set the third day aside for a massage, a long walk or other down time, and the fourth day is a travel day. We make it a habit to rest on airplanes. Since we are both patient and don’t fuss about “bumps in the road” (or in airports), travel days are pleasurable and relaxing.
And finally, neither Gillian nor I take ‘no’ for an answer. We’ve set our minds to many things in our time and have worked until we achieved those goals. At Mastersfund, we have set our sights on raising $100 million to invest in women-led innovation companies. Capital in the U.S. has been somewhat stagnant for the past few years. So, Gillian and I identified where money was being actively invested. That, in turn, led us to travel outside the country to raise Mastersfund II.
Nhã: You mentioned that you traveled several times around the world. What were your most memorable moments?
Anne: The cities of Singapore and Dubai have stunning architecture. Both cities have changed dramatically in the last half century. And both cities are leading the way in developing cities that address the changing climate and nature of the world to enable people to live in that new world.
Nhã: Mastersfund focuses on investing in women-led innovative companies. Were there any particular founders, pitches, or companies that made you stop and think, ‘This is the future’?
Gillian: Mastersfund invests in women who are building better ways to live and work together. So, in essence, every one of our investments begins with the statement, “This company is addressing the future in a positive way.” We’ve seen a company working to improve the baseline health and vigor of women and men who are trying to conceive babies. They come at the fertility issue from a different perspective than a pharmaceutical company, a surgeon, or a clinic. Rather than ask, “What can we do to run around the problem?”, the company asks, “How can we improve the baseline health of people so that their bodies can conceive naturally?” We think that’s a better way to live.
We’re already invested in a company that democratizes access to legal services, another company that improves the delivery of services for victims of abuse through clandestine communication technology, and yet another which can predict the effects of climate and nature risks so companies can make wise choices about where, what, and how to build, insure, maintain, and protect assets. Again, we see each of these as better ways to live and work together. When there is hope for a better future, everyone wins.
Nhã: As we step into 2025, what excites you the most? Are there any trends, predictions, or opportunities you believe investors should pay close attention to this year?
Anne: I expect to see a continuing increase in the flow of capital to women-led startups. Investors should be looking at different ways to capitalize startups. Conventional venture equity is designed to capitalize the early stage growth of a tiny percentage of startups. Most companies and investors will do better if they deploy different investment strategies. These can include venture debt, dividend models, and more.
Gillian: In addition to looking at new investment models and instruments, investors should be mindful of AI. Look beyond the hype to understand how companies are leveraging machine learning and AI to improve the quality of their products and services, reduce the costs of acquiring customers, improve retention rates and lifetime value per customer, and reduce the costs of delivery. When businesses leverage new technologies to effectively improve their business metrics, investors will see better investment outcomes.
Portfolio Highlights
Looped Solutions: Supporting Survivors with Secure Assistance
Looped Solutions has launched a new app that helps domestic violence victims access support and resources in a safe and discreet way. CEO Kara Wasser describes how this tool empowers users to seek help without fear of detection. Watch the interview to learn more.
They’ve also partnered with myPlan and announced a multi-year sponsorship with Wheatland Tube/Zekelman Industries to expand their efforts to help more people and build safer communities. Details here.
Bold Reuse: Making Reusable Packaging Work
Bold Reuse continues to grow its impact with projects focused on reducing single-use waste:
A reusable cup program launched with PepsiCo and Aramark at the University of Washington, providing fans a way to participate sustainably. More about the program.
Reusable cups introduced at Soldier Field in partnership with the Chicago Bears, reduce plastic waste and increase sustainability. Read the full story.
For more about founders Heather Watkins and Jocelyn Quarrel’s journey, listen to their conversation on the Invested Podcast with Margaret Weniger. Watch the episode.
A highlight at the 2025 Major League Baseball Operations and Security Conference, they shared how their solutions work at large venues. See what they’ve been up to.
Earth Knowledge: Solutions in Action
Earth Knowledge was featured on Microsoft’s blog, highlighting their use of data-driven solutions on Azure Marketplace. They are one of three partners spotlighted for their efforts in tackling big challenges with innovative tools. Check it out.
Sherisse Hawkins: One Question That Changed Everything
Pagedip founder Sherisse Hawkins shared how a single, unexpected question became a game-changer for her business approach. Hear her story on the Entrepreneurs on Fire Podcast. Listen here.
Team Member Highlight
Gillian Muessig and Maureen Gilbert Shared Insights on AI, Brain Health, and Venture Capital at B.E.L.L.E. Seattle Event
Gillian Muessig and Maureen Gilbert recently spoke at “Shaping the Future: AI, Brain Health, and Venture Capital”, an event in Seattle hosted by B.E.L.L.E. The discussion explored the evolving role of venture capital in advancing groundbreaking fields like artificial intelligence and brain health, highlighting the transformative potential of innovation and strategic investment. More here.
Gillian Will Speak at TechArena Stockholm in February
Gillian will be speaking at TechArena 2025 in Stockholm alongside an impressive lineup of speakers, including Sir Richard Branson, Marc Randolph, and Sanna Marin. She will discuss emerging trends in technology and venture capital investment model she has created at Mastersfund to better serve investors, entrepreneurs, and the communities in which their startups thrive. Details here.
Closing Thoughts
The Roman god Janus looked back and forwards at the same time, as do we on the brink of this new year. Looking back, we are grateful for everyone who participated in our adventure at the vanguard of the evolution of venture capital — Mastersfund’s LPs, Venture Partners, Advisors, our leadership team and, of course, our portfolio company founders. We continue to gird our companies with all that they need to stay on track on the roller coaster ride that is entrepreneurship. Our founders continue to display the resilience and vision and Mastersfund’s leaders will continue to stand by them at every turn.
Wishing you a very good 2025,
Anne, Gillian, and the Mastersfund team