Capital Efficient Mindset
Welcome to the Fifty-Sixth edition of Unstoppable Female Founders!
#Unstoppable Female Founder
My Unstoppable Female Founder Spotlight this week profiles a woman who if the definition of perseverance after successfully pivoting her company not once but twice! She is Elisabeth L’Orange, Founder & CCO of Oxolo.
You know those founders who make the startup journey look effortless? Elisabeth L'Orange isn't one of them - and that's exactly why I find her story so compelling. As the co-founder of Oxolo, she's building something pretty incredible in the GenAI space, but what really got me excited about her story is her refreshing honesty about the tough decisions founders have to make.
Let's start with an interesting twist - Elisabeth actually jumped from VC to founder, not the other way around which is far more common. With her background in law and finance, she spent years as a Venture Partner getting an inside look at what makes startups successful and also what causes them to fail.
Speaking of failing, it’s a common saying in the startup ecosystem that we should "fail fast." Elisabeth and her co-founder Heiko have mastered something even tougher - pivoting while you're succeeding. They’ve done this not just once, but twice. Their first product, Tipy - an AI digital companion for children, had 80,000 users when they decided to shift gears. The second and current startup, Oxolo grew to over 600,000 users before they announced in August of this year they would once again pivot the business. Both times, they had paying customers and real revenue on the table.
Why make such a huge change when things are working? New AI regulations were coming down from the EU that would require all AI-generated content to be labeled as such. Elisabeth and her team made the bold decision to discontinue their current product rather than compromise its effectiveness. It's this kind of foresight, the ability to see around corners and make tough decisions that marks truly exceptional leadership.
But what really resonated with me about Elisabeth's approach and leadership style is how she manages her team. I speak a lot about the importance of your team and developing a strong company culture for that team to thrive within. She is known for surprising her global team members with unexpected "just because" gifts and treats, fostering a genuine connection that transcends typical corporate relationships.
‘Culture is lived, it cannot be artificially manufactured’
In Elisabeth's leadership style she puts her team at the heart of every decision. And when it came time for Oxolo’s latest pivot, iInstead of making decisions behind closed doors, she and Heiko brought the whole team into the conversation. They ran a massive session allowing the entire team to ideate and brainstorm collectively, the company's new direction.
It's no wonder Elisabeth has been named one of Germany's 15 leading women in AI by Manager Magazin or that she’s also made OMR's list of top 50 minds in the digital industry. But what I really appreciate is how she's using her platform to push for responsible AI development. She's been vocal about the dangers of misinformation and deepfake content, actively supporting regulation that ensures AI development remains ethical and safe.
Her advice about fundraising? "Watch your reputation. It's all about trust. It's about being someone investors can trust with their capital - being reliable, honest, and not overselling.
Right now, Oxolo is at a fascinating turning point. While most founders might have stuck with a product that was working, Elisabeth and her team are taking a bold step into their next chapter. They're rebuilding with their existing tech stack and talented team, but with a fresh direction. It's a gutsy move, but one that speaks volumes about Elisabeth's leadership style - she'd rather face a temporary setback than compromise on building something that truly matters.
I think what stands out most about Elisabeth isn't just what she's building, but how she's building it. In an industry that often celebrates the quick win, she's playing the long game - making tough calls, keeping her team close and never losing sight of the bigger picture. For anyone building their own company right now, that's a playbook worth paying attention to.
Female Founders Raising Capital
HAUS of HUTCH | Creator Economy | B2B | Pre-Seed
The creator economy has exploded, on its way to being a near half a trillion dollar industry by 2027 according to Goldman Sachs. However creators are running into a problem!
The consumer demand for new content is high, however brands and creators are struggling to keep up with their delivery execution. This is where Haus of Hutch comes in - a content studio, community and lifestyle ecosystem designed to keep innovation, imagination and creativity high.
Haus of Hutch works with creators and SMEs to develop and deliver engaging, high quality content, keeping them relevant, building audiences and driving revenue.
Meet the co- founders:
Sisters, Siena & Elys Hutchinson are serial entrepreneurs with extensive backgrounds in branding, design, marketing and creative direction - including being content creators themselves. Siena the founder & CEO of Hutch & Co. a branding and creative design studio and Elys, a Netflix reality TV personality and influencer with nearly 1 million social media followers combine to bring the perfect mix of experience to Haus of Hutch!
Traction:
To date they’ve worked with creators and brands such as Creed McKinnon x H&M Man, Nathan Soan x FashionNova, Hetty Appleton x Shona Joy (Burberry) and Lucien Laviscount (Emily in Paris) x The Gentleman’s Journal to name a few.
The Raise:
Haus of Hutch is raising a £250K Pre-Seed round to help fuel their community and membership growth, expand into podcasting and secure additional locations for creator studios.
#TheRant
Capital Efficient Mindset
With the fundraising landscape shifting, the ability to achieve profitability through capital efficiency has never been more crucial. In my years of building startups, I've learned a few key strategies that I believe can help you optimize for growth.
For me, it all starts with adopting a capital-efficient mindset. This means thinking lean, getting creative and innovating at every turn - think outside of the box!. Too often, founders get distracted by the "shiny new thing" or sink resources into vanity projects (likes and social media engagement anyone?). But the path to profitability requires ruthless prioritization and a relentless focus on your core revenue drivers.
Here are a few areas to focus on:
1. Revenue Growth is Your North Star - If an initiative or activity isn't directly contributing to your top line, it shouldn't be occupying your precious time and resources. Hone in on the features, marketing tactics and customer experiences that move the needle on revenue. Prioritize the activities that generate the most bang for your buck.
Research shows that companies who take a "revenue-first" approach to product development, where new features are evaluated based on their ability to drive sales, are 2.6x more likely to achieve profitability. Start with a minimum viable product that generates revenue immediately, and let those early customer dollars fuel subsequent improvements.
2. Get your Pricing Strategy Nailed - Too many founders fall into the trap of "growth at all costs," sacrificing profitability in the pursuit of rapid user acquisition. But sustainable growth comes from ensuring each sale contributes positively to your bottom line.
Design your pricing structure with profitability in mind from the start. Understand your true cost-per-user (CPU) and set prices that not only cover those costs, but also allow you to gradually scale your margins. Don't be afraid to experiment with alternative revenue streams or monetization models - things like professional services, subscriptions, or premium features can diversify your revenue without heavy overhead.
3. Maximize Operational Efficiency - One of the hallmarks of capital efficiency is maintaining a lean, agile team. Hire only essential personnel and be creative with your workforce - utilize contractors, part-timers and generalists who can wear multiple hats. A study by McKinsey found that startups with leaner teams grow 2.5x faster.
Automation is also key. Identify repetitive, manual tasks across your business - accounting, marketing, customer support - and leverage tech to streamline them. This not only reduces costs, but frees up your team to focus on high-impact, strategic work. With an abundance of AI and SaaS tools on the market- you can automate just about anything these days!
4. Prioritize Cash Flow Over Profits - In the early stages, your north star should be maintaining a healthy cash flow to cover operations and enable strategic reinvestment. Offer your users incentives like discounts for upfront annual payment, and negotiate extended payment terms with vendors. Every bit of optimized cash flow gives you more runway to grow.
And be mindful of those fixed costs - things like office space, utilities and equipment. Explore flexible, low-cost alternatives like coworking spaces or remote-friendly setups to keep your burn rate low.
5. Drive Growth Through Low-Cost Marketing - As a founder, your most valuable marketing assets are your content and your customers. Invest in a robust content marketing strategy, leveraging SEO, social media and guest posting to build brand awareness and authority. And don't overlook the power of referral programs - incentivize your existing users to spread the word and drive new user acquisition.
Strategic partnerships are another capital-efficient way to expand your reach. Collaborate with complementary brands, influencers and industry experts on co-marketing initiatives that give you access to new audiences.
So rather than feeling as though you’ll need to always be fundraising or securing additional investment to keep your startup alive, focus on the above 5 areas of your business. Become capital efficient as best you can and you’ll not only build a profitable and sustained business, but you’ll likely also come up with a few creative and innovative ways to problem solve along the way!
#HypeCorner
The amazing female founders who have raised capital with their teams over the past week. HUGE CONGRATULATIONS TO THESE AMAZING WOMEN:
🇫🇮 Elli Laukkala Founder & CPO of Happy Plant Protein
🇩🇪 Dr. Kati Meister Co-founder of fija Finance
🇬🇧 Kasia Szostak-Lipowicz Co-founder of MintNeuro
🇩🇪 Sarah Fleischer & Ksenija Milicevic Neumann Co-founders of tozero
🇩🇪 Nina Mannheimer Co-founder & CPO of Klim
🇬🇧 Sam Taylor Co-founder & CEO of Green Power Solutions
🇩🇰 Suzanne Zamany Andersen Co-founder & CEO of NitroVolt
🇮🇹 Elham Hassanzadeh Co-founder & CEO or Arxax
🇬🇧 Giovanna Laudisio Co-founder & CEO of Naturbeads
🇬🇧 Victoria Garcia CEO of BindEthics
🇳🇱 Eva van Rooij Co-founder & CSO of Phlox Therapeutics
🇩🇪 Dr. Hanne Horvath & Dr. Elena Heber Co-founders of HelloBetter
👏 Congrats again to all of these founders and their teams. 🙌🏼
Events for Female Founders
🇫🇮 {Helsinki} On 20-21st of November, SLUSH 24 will host its annual pitch competition, however this year Cherry Ventures and general catalyst are putting up €1 Million for the winning startup. Could that be you? Apply here: https://slush.org/startups/slush-100/
🇬🇧 {London} Women of Silicon Roundabout is the UK’s largest tech event for women and happening on the 27th and 28th of November this year. WoSR is where the leading voices in technology meet.
Do you know of any events or programs aimed at supporting female founders? Send them over to be featured!
Thanks again for taking the time to read this week’s newsletter!
☀️ Have a wonderful weekend! ☀️
JH