Investment Hypotheses & Fund Overview
A brief synopsis of Waterfall Holistic Investment Partners' strategy
Market Opportunity
The global economy is missing out on vast reservoirs of talent, innovation and market understanding by underinvesting in women, foreign-born individuals and other underrepresented groups. Our strategy recognises this obvious yet still untapped potential and aims to capitalise on it, driving both financial returns and positive social impact.
Key points:
Women control or influence up to 80% of consumer spending decisions globally, yet they remain vastly underrepresented in business ownership and leadership.
Diverse founding teams are 158% more likely to develop solutions that cater to a broader market base.
Pursuing diversity alone is not enough. A key focus of the work we do with companies is enabling them to harness the strength of their perspectives to develop and execute business strategies that deliver outstanding results.
Investment Focus
Our fund is sector-agnostic, recognising that innovation and opportunity arise in any industry. We provide comprehensive support from pre-seed to growth stages and potential IPOs, offering a continuous pathway for promising ventures to scale and succeed.
Why Invest in Underrepresented Groups?
a) Market Insight: Women-led businesses targeting female consumers often have deeper insights into their needs, preferences and pain points. This intimate market understanding can lead to more tailored, effective solutions with stronger customer loyalty and disproportionate financial results.
b) Untapped Innovation: Diverse perspectives often lead to novel solutions for both existing and emerging markets. By investing in underrepresented groups, we access a wealth of unique ideas and approaches that may be overlooked by traditional funding sources.
c) Capital Efficiency: Historically, businesses led by underrepresented groups have achieved more with less capital due to limited access to funding. This resourcefulness can translate to higher capital efficiency and potentially stronger returns for investors, especially when more optimally funded.
d) Expanding Markets: By supporting diverse founders, we contribute to the creation of new markets and the expansion of existing ones, driving economic growth and opening up fresh investment opportunities.
Our Approach
a) Comprehensive Support: We recognise that access to capital is just one piece of the puzzle. Our partnership provides a holistic support system, including mentorship, crucial networking connections and strategic guidance to help our portfolio companies thrive.
b) Long-term Partnership: By supporting companies from pre-seed to growth stages, we build lasting relationships with founders and can provide consistent support throughout their journey, including follow-on investments into promising team members and their spin-offs.
c) Impact Measurement: We employ robust metrics to track both financial performance and social impact, ensuring our investments generate tangible benefits for founders, their teams, their communities and our investors.
Market Potential
The potential for returns is significant:
Women-owned businesses grow at more than double the rate of all businesses nationwide (US & EU aggregate).
Diverse founding teams have been shown to deliver higher returns on average compared to homogeneous teams.
The untapped potential in underserved markets represents a multi-trillion dollar opportunity globally.
Conclusion
By focusing on underrepresented groups, particularly women and foreign-born individuals, our fund is positioned to capitalise on overlooked opportunities, drive innovation and generate strong returns while promoting community development, social cohesion and economic equality. We believe this approach not only makes good business sense but also contributes to a more inclusive and dynamic global economy.
As we embark on this journey we would love to hear from you or maybe even have you join us. Please drop us an email here to register interest or notify us of your support. Thank you.