Serena Williams Invested In 14 Unicorn Companies

Serena Williams’ impact reaches well beyond her remarkable achievements on the tennis court. Following her retirement in September 2022, Williams shifted her focus more toward the investment arena. With over a decade of investment experience, she took a pivotal step in 2014 by establishing Serena Ventures, a venture capital fund specifically designed to champion women and underrepresented founders, with a mission “to invest in us” as she proclaims via TikTok.

“At Serena Ventures, we ignite change by investing in opportunities that make the everyday lives of people better,” states the company’s LinkedIn profile.

The VC endeavor emerged from Williams’ observation of the evident lack of venture capital directed toward certain demographics, which motivated her to become a catalyst for change. As highlighted on its website, the company’s portfolio includes 79% founders from underrepresented groups, 54% female founders, 47% Black founders, and 11% Latino founders.

Williams founded Serena Ventures along with Alison Rapaport Stilman with a vision to support founders “whose perspectives and innovations level the playing field for women and people of colour”. Based in the San Francisco Bay Area, California, the firm actively pursues early-stage, series A, B, C, and seed investments across consumer products and services, information technology, TMT, healthcare, e-commerce, and wellness industries, boasting a diverse portfolio of 85 companies.

Williams estimates that 14 of her portfolio companies have achieved unicorn status.

“I’ve invested in over 85 companies, and I also have about 14 unicorns,” Serena shared via TikTok.

The success of Serena’s investment strategy clearly shows that investing in female and underrepresented founders is beneficial.

Megan Thorp, Portfolio Manager at IgniteIR, adds, “Serena Williams’ venture investing is a testament to her determination, paralleling her athletic career where focus and perseverance were key. Her portfolio of 14 unicorns reflects a strategic emphasis on grit—a quality she personifies. The venture capital landscape in the U.S. reflects power dynamics, where financial autonomy for women can influence which ideas evolve into products. Despite the low representation of female founders, and even less among non-white women, the impact when they do break through is significant.”

Melanie Platt, VC Fundraising Expert, having orchestrated fundraises totaling $750M for founders and venture capital firms, continues, “Serena Williams’ long term success in venture capital highlights her ability to leverage her distinctive perspective as a black female leader in a field where few others exist. This distinct vantage point enables her to see potential in startups where others might hesitate, fostering deeper exploration into ventures that promise growth. Her success stories are not merely tales of celebrity but of a profound ability to identify and nurture startup potential early on. Female investors achieve a 1.8% higher return than their male peers over three years, translating to significantly larger portfolios over the long term.”

Highlighted among her portfolio companies is HUED, a healthcare startup aimed at enhancing standardized healthcare accessibility for the often-overlooked African and Latin American communities. In August 2021, the company secured over $1.6 million in funding from Serena Ventures, Black Founders Matter, Halle Tecco, among others. Other notable investments include Parfait, an AI-driven platform specializing in customizable wig products, and MasterClass, an edtech startup that was valued at $2.75 billion in 2021 according to CNBC.

“I remember finding that company with like eight people in a small room in a garage in San Francisco. And I just fell in love with what they were doing and what they were building,” she explained on TikTok.

Her investment portfolio extends beyond MasterClass, including contributions to Impossible Foods, known for its plant-based meat alternatives; Noom, a subscription-based weight loss app; and Karat, which assists companies in recruiting top engineering talent.

Other remarkable ventures backed by the 23-time Grand Slam champion over the last eight years feature Lolli, Inc., a partnership-based web browser extension and app that offers rewards in cash or Bitcoin for shopping at select websites. Then there’s Tonal, a smart home gym system delivering comprehensive strength training through streamable classes. Serena Ventures played a pivotal role in Tonal’s $45 million Series C funding round in April 2019, led by L Catterton Ventures. Additionally, OURS, an online wellness entity focusing on couples and pre-marital counseling, provides live and pre-recorded sessions by skilled professionals.

Despite female founders receiving only 2% of total capital, BCG’s data shows that women-led businesses generate more than double the revenue per dollar invested compared to male-led ones, despite lower initial investments.

Megan explains, “First Round Capital also found that female-founded companies outperformed all-male teams by 63%. These insights suggest a strong case for investing in women-led and diverse teams, as such inclusivity in portfolios has been associated with higher returns. Take for instance, Portfolia’s Rising America Fund that produced the highest returns among all their funds last year. This trend may be driven by the extraordinary tenacity of underrepresented founders, who often must overcome greater barriers to succeed.”

Another interesting fact to consider is that Serena Ventures’ team comprises solely diverse female representatives involved in making investment decisions and operations. This underscores the belief that a diverse team can make better investment decisions, highlighting the significance of having female representatives as part of the management team in venture funds.

As Melanie explains, “It’s a potent reminder that true venture capital success hinges on innovative thinking, informed by diverse viewpoints. Without this approach, even the most accessible deals can lead to repeated mistakes, highlighting the indispensable value of diversity and innovation in the venture landscape.”

As stated on Serena Ventures’ website, “We believe that investors should act as catalysts for change, which is why we invest in products and ideas that open doors for founders and add value for investors, creating opportunities for an enhanced way of living for us all.”

Platt adds, “With so many VC funds in the market, simply offering capital as a differentiator isn’t enough. As a black female GP, Serena Williams brings a distinct advantage in accessing innovative deals, further enhanced by her unique support strategies for portfolio companies. This involves not just leveraging her expansive network but also cultivating a team of women who contribute unparalleled value. This female-driven approach ensures that startups receive strategic growth support beyond funding, a benefit rarely matched by non-female-led GPs.”

Serena Williams’ foray into venture capitalism through Serena Ventures has significantly impacted the tech and venture capital world, emphasizing diversity and support for underrepresented founders. With a keen eye for potential and a commitment to change, Williams has not only backed startups that solve real-world problems but also demonstrated the immense value of inclusivity in investment. Her portfolio underscores her ability to identify and nurture high-potential ventures, many of which have achieved unicorn status. This venture capital endeavor is more than an investment strategy, it’s a mission to level the playing field, fostering innovation and offering opportunities that might otherwise be overlooked. Through Serena Ventures, Williams is rewriting the rules of venture capital, proving that diversity and strategic support not only yield high returns but also drive meaningful societal change. In line with the company’s mission, “we plan, we play, we win”. It appears this approach is indeed effective.