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This Oklahoma VC raised $2 million from women in the Midwest and South to fund female founders post-Roe v. Wade

By
Emma Hinchliffe
Emma Hinchliffe
and
Jessica Mathews
Jessica Mathews
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By
Emma Hinchliffe
Emma Hinchliffe
and
Jessica Mathews
Jessica Mathews
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July 21, 2022, 9:24 AM ET
Erika Lucas smiling while standing in an office
“They're telling me they're not moving here. They're not applying to our programs,” says Erika Lucas of conversations she is having with female entrepreneurs in Oklahoma City. Courtesy of Erika Lucas

Good morning, Broadsheet readers! We’re bringing you a special edition from Fortune sister newsletter Term Sheet. Term Sheet, by senior writer Jessica Mathews, is Fortune’s daily newsletter covering everything you need to know about deals and dealmakers. Today, Jessica is covering a first-time VC in a red state, who raised $2 million in two months to fund women after the overturn of Roe v. Wade. See a preview below, and subscribe to Term Sheet here. 

– In between the coasts. Erika Lucas wasn’t planning on launching a venture fund two months ago.

Lucas, who runs mentorship and accelerator programs for women and entrepreneurs of color in Oklahoma City, has made about 30 personal investments in startups with her and her husband’s own money over the years—but she didn’t want to be a GP.

“I had shied away from raising a fund for multiple years,” she says. For one, Lucas had already been a partner at a private equity firm in the past. But more importantly, she’s maintained that it’s important to lay out all funding options to founders, such as lending-based financing or traditional bank loans, depending on their needs. Venture capital isn’t for everyone, she says.

But then May 2 rolled around. Politico published a groundbreaking report that the Supreme Court was close to overturning Roe v. Wade. Two days later, Lucas was getting on the phone to fundraise.

The unprecedented reversal of the Supreme Court’s 1973 ruling on abortion hit Lucas a little differently than some of her other peers in the venture capital and startup industry. After all, Lucas lives in Oklahoma, a state that promptly moved to pass antiabortion legislation shortly after the leak. There may be funds focused on women founders out there, Lucas acknowledges, but there aren’t many in the middle of the country, and particularly in states that will be impacted most by the Supreme Court’s recent ruling.

“Decisions continue to be made for us, instead of by us,” Lucas says. “And that’s only going to change when women are in those positions of power in the private sector—so that they can drive the solutions that are part of developing the future of work and fixing our care infrastructure.”

“They’re telling me they’re not moving here. They’re not applying to our programs,” says Erika Lucas of conversations she is having with female entrepreneurs in Oklahoma City.
Courtesy of Erika Lucas

Lucas began making calls to women within her circle of female executives and high-net-worth individuals from accelerator program StitchCrew and private network VEST Her. She is calling her new firm VEST Her Ventures, and she plans to back women-led pre-seed or seed startups in the future of work or care economy space. In two months, Lucas closed $2 million from individual limited partners, all high-net-worth women who live in the middle of the country. Now she is turning to institutional capital, and is seeking to raise another $18 million by the end of the third quarter.

Last week, VEST Her Ventures closed its first investment with some of the new capital—backing Byrdhouse, an Illinois-based app that uses artificial intelligence to provide real-time translation on video chats.

As for Lucas’s track record, it’s still early, as she only started angel investing about four years ago. Thus far, she had a 5x return on her investment in From Seed to Spoon, an app that teaches people how to grow their own food, which was acquired by gardening e-commerce company Park Seed earlier this year. She’s also been an angel investor in reproductive health startup Noula Health, which just raised $1.4 million in pre-seed funding. About 30% of Lucas’ personal portfolio companies have already gone on to raise their Series A, she says.

Lucas says the new fund will back women wherever they are, but she plans to focus on companies in the middle of the country, as she says those deals often aren’t getting as much visibility.

“I feel like if we want to really see a change, and we want to see it faster, we’re going to have to start funding women,” Lucas says. “And not just women entrepreneurs—but women who are focusing on delivering solutions that are redefining the way we work and integrate life.”

Jessica Mathews
jessica.mathews@fortune.com
@jessicakmathews

The Broadsheet is Fortune’s newsletter for and about the world’s most powerful women. Subscribe here.

ALSO IN THE HEADLINES

- Earning their Truss. Liz Truss is a leading candidate to succeed Boris Johnson as U.K. prime minister. She'll compete against Rishi Sunak to earn the Conservative Party's support in September. Truss has served as foreign secretary and would be the third woman from the Conservative Party to ever serve as PM, following Margaret Thatcher and Theresa May. Washington Post

- Plea for help. Ukrainian First Lady Olena Zelenska addressed Congress yesterday, asking the U.S. for more weapons to fight Russia's invasion of her country. She said that she spoke to U.S. lawmakers "not as a first lady, but as a daughter and a mother," before showing images of children who were seriously injured or lost parents during the war. New York Times

- Rocky raise. The European Central Bank is preparing to raise interest rates for the first time in more than a decade. ECB president Christine Lagarde is tasked with introducing that rate rise and convincing investors that the institution can protect the economies of Southern European countries. Wall Street Journal

- Not a light load. Lightspeed Venture Partners became a power player in venture capital under the leadership of Jeremy Liew, with investments in Snap and the Honest Company. As Liew takes a step back, what's next for the firm? Senior consumer partner Nicole Quinn is one of the VCs navigating that future. Fortune

MOVERS AND SHAKERS: Former longtime Goldman Sachs exec Margaret Anadu is joining the $8 billion private investment firm Vistria Group to lead a new real estate venture. The New York Mets hired Nancy Elder as chief communications officer. Maria Raga is stepping down as CEO of the resale platform Depop, to be succeeded by Etsy chief product officer Kruti Patel Goyal; Etsy acquired Depop a year ago. CNN promoted Virginia Moseley to EVP of U.S.-based editorial; named Johnita Due EVP of integrity and inclusion; and hired Washington Post alum Kristine Coratti Kelly as EVP and head of global communications. Coratti Kelly fills a role that had been vacant since Allison Gollust departed amid the network's investigation of its handling of Chris Cuomo's ouster. Webflow hired Linda Tong as COO. Ovia Health hired Jenny Carrillo as chief growth officer and general manager. Macquarie named Sarah Hindlian-Bowler managing director and head of technology research Americas. Local business platform Podium hired Pauline Reader as CMO. 

IN CASE YOU MISSED IT

- Remembering Ivana. Friends and family of Ivana Trump gathered in New York yesterday to mourn the businesswoman and ex-wife of former President Donald Trump. Ivana died at 73 last week. Ivanka Trump remembers her mother as "brilliant, charming, passionate, and wickedly funny." CNN

- From the top. Since the overturn of Roe v. Wade, patients have reported being denied prescriptions for medications they take that can possibly induce abortions, like the drug methotrexate used for autoimmune disease treatments. The New Republic reports that CVS Health instructed pharmacists to deny such refills. A pharmacist told the publication that the company, led by CEO Karen Lynch, sent staff in "high-risk states" a memo about new checks required before dispensing such drugs. CVS confirmed that the company has instructed pharmacists "to validate that the intended indication is not to terminate a pregnancy" before providing certain medications. The New Republic

- Business or pleasure. One benefit of work conferences these days? For parents, the chance to travel without their kids. Recent conference attendees report having a "blissful" time traveling on their own. "I didn’t have anyone to be responsible for—or to answer to," one mom said after attending an interior design gathering. Wall Street Journal

- Ban is back. Georgia's abortion law banning pregnancy terminations as early as six weeks, when a "heartbeat" is detected but before most people know they're pregnant, will be allowed to take effect. A federal appeals court yesterday overturned a lower court ruling blocking the ban. ABC News

ON MY RADAR

Audrey Gelman on life after the Wing Vanity Fair

You can now text Michelle Obama. Here’s what happens when she responds Fortune

The constant loneliness of navigating infertility as a Black man Vice

PARTING WORDS

"Can you imagine what we’d be capable of if we didn’t feel bad about aging?"

- Writer Mira Jacob in a Harper's Bazaar piece, "A message to the millennials about to turn 40."

This is the web version of The Broadsheet, a daily newsletter for and about the world’s most powerful women. Sign up to get it delivered free to your inbox.

About the Authors
Emma Hinchliffe
By Emma HinchliffeMost Powerful Women Editor
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Emma Hinchliffe is Fortune’s Most Powerful Women editor, overseeing editorial for the longstanding franchise. As a senior writer at Fortune, Emma has covered women in business and gender-lens news across business, politics, and culture. She is the lead author of the Most Powerful Women Daily newsletter (formerly the Broadsheet), Fortune’s daily missive for and about the women leading the business world.

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Jessica Mathews
By Jessica MathewsSenior Writer
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Jessica Mathews is a senior writer for Fortune covering transportation, defense tech, and Elon Musk’s companies.

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