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Episode 31: "Less Than 2% of VC Funding" | SWITCH CEO Kate Brodock on Untapped Founder Talent, The Arbitrage Opportunity in Women-Led Ventures, and Equipping New Angel Investors

Insights from a twenty-year tech ecosystem veteran creating pathways for women angel investors

Today's episode explores three ideas that caught my attention:

  1. Capital distribution defies logic - Kate highlighted that less than 2% of VC funding goes to women-led teams, yet data shows they're 3x better at capital efficiency. Wild.

  2. Education activates capital - Confidence gaps, not capability gaps, often prevent qualified individuals from angel investing. Kate's focus on education first, then group formation, flips the traditional model brilliantly as this is something I’ve seen many investor communities struggle with.

  3. Unconscious bias has measurable patterns - Research shows identical pitches get forward-looking questions when delivered by men versus backward-looking questions for women. The awareness of this tendency alone is a key step to evolving our approach.

I explore these ideas and more with Kate Brodock, CEO of SWITCH.

Kate brings nearly two decades of leadership in the tech startup ecosystem as CEO of SWITCH and General Partner at The W Fund, focusing on addressing funding disparities for women and underrepresented founders. Her dual perspective as both investor and educator positions her uniquely to identify market inefficiencies, having created pathways for hundreds of new angel investors through her "Angel Sessions" programs. Kate combines academic knowledge with practical investment experience to address systemic challenges in the venture capital landscape.

During our conversation, Kate shares:

  • Specific examples of portfolio companies positioned to thrive through challenging market cycles - from agricultural data solutions to community-focused fintech platforms serving traditionally underbanked populations.

  • A framework for recognizing unconscious bias in due diligence by comparing how investors typically approach male versus female founders with identical pitches.

  • Insights on the "feminine versus masculine" leadership traits that impact how founders are perceived, along with strategies for founder coaching that strengthens leadership capacity beyond Series A.

What We Cover:

  • 00:00 Introduction

  • 01:41 Excitement in the Investing Space

  • 03:27 The Case for Women-Led Ventures

  • 05:25 Portfolio Success Stories

  • 08:23 Unique Diligence Process

  • 12:02 Leadership Coaching for Founders

  • 18:52 Challenges in Evaluating Founders

  • 23:56 The Angel Sessions Program

Listen now on Spotify, Apple Podcasts, and YouTube.

Connect with Kate

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Stuff We Reference

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All opinions expressed are personal and may not reflect the views of the individual’s organization or of The Diligent Observer. Not investment advice.