Rupa Popat is an entrepreneur and the driving force behind Arāya Ventures, a venture capital firm dedicated to supporting visionary founders who are revolutionising our world. She is also an influential angel investor in over 40 start-ups and venture capital funds.
Beyond her professional endeavours, she is the founder of AVA Angels, a transformative initiative aimed at introducing more women to the world of angel investing. Recognised for her outstanding contributions, Rupa has been honoured as one of Forbes' Top 15 Investors in Underrepresented Founders for 2022 and was a finalist for the UKBAA 2023 Angel Investor of the Year.
Here, she talks about her entrepreneurial journey, investing in women and the need for diversity in the field.
What motivated your transition from building businesses to becoming a venture capitalist?
I really enjoyed building businesses and found them to be quite rewarding, However, after I sold my company, I felt a strong desire to give back and realised that mentorship, along with financial support was one way to do so. As an investor with an entrepreneurial background, I believe I can provide valuable insights and guidance to the founders I invest in. I was inspired by the many impactful businesses being built by talented entrepreneurs, I wanted to contribute to their success as well. Moreover, as a female founder in 2013, I faced challenges in raising capital. At that time, there were few female investors to be found and now, nearly a decade later, I am proud to be one of those women.
What advice would you offer women entrepreneurs seeking funding for their ventures?
Firstly, I would strongly encourage you to pursue entrepreneurship if it's something you've been considering. I was in banking for a long time before taking the leap, and looking back, I'm glad I did. It's important to follow your passion and take calculated risks. Secondly, I received some valuable advice a while back, which was to build my network before I needed it. It is crucial to have a strong network of investors, fellow entrepreneurs, and mentors who can provide invaluable support, guidance, and opportunities. If you're new to entrepreneurship, there are numerous accelerator and incubator programs offering mentorship, resources, and networking opportunities. Lastly, not every successful business requires external investment, so assess your needs and resources carefully. Explore alternative funding options, such as loans, angel investors, or bootstrapping.
Why is it vital to involve more women in investing, and what strategies can empower more women to participate?
Over 70% of women are more likely to be asked about their weight than about their investments and part of the reason for this is that women tend not to discuss investments among themselves. I believe it all starts with awareness. We need to raise awareness that anyone can be an investor; everyone should be thinking about their financial future and considering which asset classes they want to invest in. Secondly, education is crucial, which is why we've developed a course called "Angel Investing for All" to empower more women to learn about angel investing. By providing accessible education, we can demystify investing and make it more inclusive. Next comes collaboration and community. There are many opportunities for angel investors, regardless of gender, to join supportive communities that assist them in their investment journey, helping them learn from one another and build confidence.
What do you believe, can be done to support women's advancement in the business sector?
Firstly, the government's tax relief programs, such as the Seed Enterprise Investment Scheme and the Enterprise Investment Scheme, offer phenomenal incentives for investors supporting early-stage companies. These initiatives encourage investors to participate and recently saw increased tax relief thresholds, making them even more attractive. Secondly, the government's efforts in providing resources and educational support for aspiring entrepreneurs are commendable steps in the right direction, most recently with their launch of the Help to Grow hub. However, to truly address the funding gap for women entrepreneurs, we need a fundamental shift in how capital flows. While existing venture capital programs are valuable, more investment in diverse funds managed by diverse managers is crucial. Research shows that diverse fund managers are three times more likely to invest in diverse entrepreneurs, therefore we need to accelerate capital and support to emerging diverse managers. This will impact the flow of funding to women entrepreneurs and other underrepresented groups.
What are your aspirations for your role in fostering innovation and diversity within the startup ecosystem?
Personally, my mission revolves around two key initiatives. Firstly, with Arāya Ventures, our fund strives to channel more capital into the hands of diverse entrepreneurs. In an industry where only 2% of venture capital typically goes to female founders, our portfolio has already allocated over 60% to female entrepreneurs. While we invest in all entrepreneurs, our approach is underpinned by a commitment to diversity. Secondly, through the AVA Angels course and community, I aim to bolster diversity among investors, ensuring a more inclusive investment landscape in the UK.
Fund website: www.araya.ventures
Angel Investment course: www.araya.ventures/ava
Government’s Help to Grow hub: www.helptogrow.campaign.gov.uk
