VC investment screening process creates more exits and fewer failures
A screening process that removes bias in VC investment decisions identifies more successful exits and fewer shut-downs than traditional methods, according to a new white paper that has analysed thousands of companies over 25 years.
In "The Astia Expert Sift: An Innovative Approach to Investing in Innovation," Astia, the global VC that invests in companies that include women leaders, analysed a quarter-century of deals using the Expert Sift, its unique investment screening model. It found that the Sift consistently identified more exits (16%) than shut-downs (11%), compared with a 65-75% failure rate in the broader startup market.
Historically, only 2-3% of venture capital dollars have been invested in startups with women CEOs, and just 22.7% to teams with at least one woman. This means over 77% of VC dollars are still invested in all-male founding teams.
Astia estimates that it has now evaluated 16,450 entrepreneurial businesses representing more than $220 billion in early-stage investment opportunity; conservatively translating into 206,600 jobs. In 2024 alone, over 600 high-growth companies submitted materials to Astia for investment consideration, representing nearly $2 billion of investment opportunity. With more than $50 million in AUM invested across 66 companies, Astia’s multi-sector portfolio includes companies driving the future of health, climate, and prosperity. Over the course of Astia's investment experience, the firm has been on par with top quartile venture metrics, validating the Sift as a deal sourcing and screening tool.
“Since inception, Astia has sought to carve its own path to source, screen and invest in top-performing start-ups that include women leaders,” commented Sharon Vosmek, CEO & Managing Partner, Astia. “As investors, we recognise the critical role of proprietary deal flow to fund performance. Over 25 years, we have proven that our thesis and methodology is robust across market cycles, from the tech boom and bust to the 2007 financial crisis to today's post ‘Zero Interest Rate Policy’ (ZIRP) period, we provide our investors with the returns they look for.”
“At JPMorganChase, we recognise that a strong venture capital ecosystem helps to create opportunity and drive local economic growth,” said Shaolee Sen, Head of Small Business Philanthropy at JPMorganChase. “Astia’s research highlights the role investors have to identify and support innovative ventures, as well as generate strong economic returns while fostering meaningful change in the venture capital ecosystem.”
“Mastercard shares Astia’s commitment to supporting innovative ventures that drive strong growth and economic opportunity for all,” said Sherri Haymond, Co-President, Global Partnerships at Mastercard. “This latest research underscores the role of Astia’s Expert Sift model in elevating and creating more opportunities for the high-performing companies they serve, helping to uplift and empower a more balanced venture capital ecosystem.”
Astia has always pioneered new programs and methodologies to increase VC investment in companies with women leaders. The development of the robust, data-driven methodology behind the Astia Expert Sift is a testament to its efforts to leverage best-in-class tools and wisdom-of-the crowd to eliminate bias in the investment process.
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