Phenomenal Ventures will provide funding and support to entrepreneurs who are working on projects that improve the lives of others. The goal is for Phenomenal Ventures to become a resource for those looking to leverage their creative talents in order to make a positive impact on society.
Early in their careers, Kamala Harris and her business partner Helen Min became close friends and tech operators who shared notes on everything from grad school to angel investing. In 2021, months before the downturn began, Harris explained that the idea for a joint VC firm materialized. Inspired by their mutual experiences and expertise in technology, they started PiggybackVC with the goal of building successful businesses. The venture firm is already making a major impact on the Silicon Valley community, helping to fund startups such as e-commerce platform Threadless and artificial intelligence company MindNotes.
One job seeker expressed confidence in her ability to succeed, but also wanted to start modestly and just do the work, despite some of the uncertainty around the economy. Despite this uncertainty, these job seekers remain optimistic about their future and are determined to get started on their careers even though there are a few bumps in the road.
Phenomenal Ventures is a leading early stage venture capital firm with a history of success, and they continue to raise money for their debut fund. Around 38% of the LPs are founders or former founders, with nearly half of the investors self-identifying as women. The firm’s aim is to invest in startups that have the potential to become industry leaders and make a positive impact on society.
Phenomenal Ventures has seen rapid growth over the last year due to their focus on early stage investment. The firm is excited to be able to invest in pre-seed to Series A rounds, averaging check sizes around $100,000-$500,000. Their newest partner, Zabreen Khan, is an experienced investor who started her investment track at Andreessen Horowitz and Lead Edge Capital. This partnership will give Phenomenal Ventures a stronger presence in the early stage startup sector and allow them to make even more impactful investments in future companies.
One of the benefits that Minstra has found with their investee companies is that they tend to be innovative and have a strong sense of mission. This adaptationability helps the firms weather tough times and remain attractive propositions for investors. Additionally, all thirteen companies have been built by underrepresented founders, which proves that there is a demand for these companies and gives Minstra additional confidence when considering investments.
Min said that she doesn’t think one’s network, specifically their networks of founders from companies not typically invested in BYD, makes a lot of sense when trying to access funds. She believes that venture capital should be focused on the unique access and relationships that an individual has rather than their past company connections. This understanding is likely why Min is hesitant to join any startup accelerator programs where they would be required to partner with other startups in the program in order to gain access to investment.
There are a number of explanations for the timing of the launch. The tech industry is going through a reset, as shown in public market struggles and sector-agnostic layoffs. Funding for female founders is dropping. Harris said that there are funds of all sizes still being raised, but not many of them are led by solo GPs — even fewer are led by women, let alone women of color, or people like us who are women of color and aren’t career venture capitalists.
Phenomenal Ventures is an impressive venture capital firm that is known for its high-quality investments. The process of fundraising for the firm was lengthy and took around a year, but it ultimately closed the first half of the fund within three weeks. However, due to slowdown in the investment market, this process was slowed down significantly. This has made it difficult for Phenomenal Ventures to attract top-tier LPs and acquire new investments.
The first cut-off for fundraising was actually rather difficult to determine. Harris and Min evaluated how much time they would be able to devote to their company as well as the number of potential deals that they were able to work on. In the end, they decided that after close two, their focus would solely be on deal flow and helping portfolio companies. This proved challenging because there was a real tradeoff between their time spent fundraising and their time spent working with founders and mentoring new businesses.
Metro is starting its own fund-raising campaign in order to help offset the uncertain economy. Officials are confident that they can succeed and remain modest, despite the current conditions. This message is reassuring to donors who may be feeling discouraged about giving during these tough times.
Phenomenal Ventures is often described as a “tech” venture firm, while Phenomenal Media focuses on e-commerce. However, the overlap between the two firms isn’t just marketing-driven; because Phenomenal Media is rooted in the e-commerce space, it gets pitched a lot more often for physical products. While Min says they never categorically say no to the DTG+ category — which has been through tumultuous times over the past few years — they tend to invest in what they know: which are software enterprise companies, fintech and future of commerce.
While the Phenomenal women’s clothing brand is known for being feminist and forward-thinking, its founders are now focusing on ventures with high potential returns. The team is excited about developing new products and appreciates the opportunity to help others achieve their goals.
One of Harris’ primary motivations for joining the firm is to continue her mission-driven impact on the tech industry. She sees venture as a key starting point in that goal, as it is home to companies whose values align with hers and who are working on projects that could have a large impact.
Venture is all about creating change. You can make an impact on your LPs, GPs, founders or portfolio companies down to employee culture and the end users that they serve. Additionally, venture offers the opportunity to learn and grow in new and challenging environments. This can be valuable in your career path.
