How did she do it? A Q&A with Kathryn Schifferle, CEO of Work Truck Solutions

Posted on November 16, 2017January 23, 2020 by Brian Jones

Golden Seeds is focused on investing in the vibrant opportunities of women-led companies. As such, we work with many talented, passionate women entrepreneurs who are doing truly remarkable things. Our “How did she do it?” series shares the stories, challenges and successes of the women behind the companies of Golden Seeds.

Today, Jo Ann Corkran, managing partner of Golden Seeds and board member of Work Truck Solutions, interviews Kathryn Schifferle, CEO and founder of Work Truck Solutions, about how she launched her company and progressed through two investment rounds.

JC: Tell us about the origins of your company.

KS: I got started in the commercial vehicle industry when I was introduced to a mutual contact, who wanted help starting a professional organization and magazine for commercial vehicle sellers. After two years, we launched the National Ford Truck Club and FordPros magazine. I fell in love with the industry and the people in it — they truly are the backbone of the U.S. It was quite a shift from the 19 years I spent in the cable TV industry.

During this time, my colleague was telling me about a plumber who came to buy a plumbing truck from his dealership. He couldn’t help him because he didn’t keep any plumbing trucks on the lot. It would be expensive to stock, and he had no guarantee when it would sell. He needed to call around to other dealers and see if anyone had it on their lots. Hearing this, I told him, ‘Let me go to the Internet, and I’ll find one for you with less headache.’

I quickly found that in a $130 billion industry, it wasn’t possible to search for trucks online.

I wasn’t thinking about building another company. (I had seven companies prior to this.) I was working with the National Ford Truck Club and teaching marketing and entrepreneurship at Chico State. I was content. But at this stage of my life, my kids were grown — the time felt right. My passion for this opportunity was also different than previous companies. It was more about solving the industry problem, and less about my personal motivations. I liked that.

I founded Work Truck Solutions soon after.

JC: That’s a clear market need. How have you addressed it?

KS: I spent a lot of time researching this part of the industry. It turns out only the front end or chassis is built by original equipment manufacturers (OEMs) for commercial vehicles, and a vehicle identification number (VIN) is put on it at that stage. The truck isn’t finished, though, and can go through three to eight more aftermarket companies before it is. Every truck has a different pathway to completion and no one keeps track of what that vehicle has become, which is why no one can search for a plumbing truck. I realized the scope and the potential market and became very interested in solving that problem.

We built an inventory management service to help commercial salespeople save time and sell more trucks. By offering a simple and intuitive search experience for online commercial truck buyers, we help dealerships turn their web visitors into customers.

JC: What advice do you have for early-stage founders?

KS: Before starting a company, understand your motivations and your non-negotiables. I came up with three rules that I wanted to stick to if I were going to commit to building Work Truck Solutions:

1. No jerks.

2. Don’t force everything.
In the past, I was your typical arrogant entrepreneur and thought that I knew everything. So, I decided to flip that: instead, I would let things happen and manage the subsequent flow. It was amazing and it threw a switch in my life. I wish I learned it earlier. Things started happening more easily, in the right way. When we really, really needed our next opportunity, it seemed to magically happen. I’ve coined — and trademarked — this: “truckma.”

3. Control the culture of company.
Everyone is passionate about solving problems and working hard in startups. There’s no reason to work so hard and not have fun — so I wanted to ensure we had a fun environment and a defined culture — and that we would maintain both through growth.

I thought long and hard about what would make for a good culture, and we’ve worked proactively to build it. At the top of the list was transparency. Everyone knows what’s going on — of course maybe not every detail and not HR details — but everyone knows how our company is running, our finances and what’s coming up. We share during our all-hands meetings every Monday.

Second, we make it clear that everyone is important and appreciated. We’re about 65 people now and have kept a mostly flat organizational structure. While we have leadership and managers, we prioritize individual contributions over hierarchy.

As a company grows, you have to work harder to help people communicate. We implemented Compini, a tool to help upward and sideways communication throughout the company. Though many other companies use this to source anonymous feedback from employees, we built our culture on an open environment for everyone to talk and share. We use the tool to keep our culture focused and fresh, the way we want it. If people want to use it anonymously, that’s fine, but we want to focus more on open, easy communication rather than making people feel there’s a need to share things anonymously.

JC: What challenges have you encountered along the way? How have you overcome them?

KS: Since I’m based in northern California, I naturally went to Silicon Valley first when I was ready to raise money. I like to joke that I had two things against me: I’m a woman and I’m pitching work trucks — which are not sexy. In April 2014, I was introduced to Golden Seeds. All of a sudden, I had those same two things working for me.

This is a demographically challenged industry — most customers are older males. We launched in 2013 and tech was not the favorite thing of these older guys. Many didn’t even know how to send an email at that time. They were resistant, and we had to make our product really, really simple, which turned out to be great for us in the long run. It made for a fantastic product.

Being in this industry as a female was not always negative, but it has been a slow process of building trust and consensus in a fragmented industry. Starting as a publisher was definitely an advantage for me. I was viewed as neutral, and of course, everyone wants their name in print. Being female also makes me appear less confrontational, which is the only time in my life that my gender has felt like an advantage.

JC: What’s coming up next for your company? Any big milestones on the horizon?

KS: So many great things. One to share is that we have our first enterprise-level relationship with a manufacturer. We’re providing the data they need to help improve their business.

JC: Tell us about your experience with Golden Seeds. How has the Golden Seeds network been helpful to you?

KS: It’s a fantastic group of smart businesspeople and investors, who are focused on the goal to help build success. That has been incredible — and something I’d never had before. In addition to the financial support, there’s a sense of cheerleading: constant support along with ideas to grow the business. I came from an “I’ll do it myself” lone wolf experience, and Golden Seeds was a welcome change.

Golden Seeds was incredibly thorough in their due diligence. This worked to our advantage because other investors were comfortable using it. Since our close, we’ve gotten such great support working with the Golden Seeds team and network. I’ve been attending Golden Seeds’ annual Summit each year. It’s great to be around other entrepreneurs and investors, and tap them for advice.

Here’s one example: when we raised our A round, I didn’t plan to raise another. And we were successful — we reached break-even by our projected date. At that point, however, I realized the trade-off of not raising more capital was slower growth. If we had resources to work on five things rather than just one, what would that do for our growth? I started talking to Golden Seeds and got a lot of support for my plan to raise a B round. I was meeting with investors, but couldn’t find the right fit. We needed a strategic lead investor with deep experience in our industry that would support us with more than just money. It was difficult to find the right partner with experience in not only transportation, but commercial transportation. Again, I turned to the Golden Seeds network at the Summit to source their opinions on doing a smaller raise or an internal convertible note. And again, I got positive feedback and support. Coincidentally at that time, I met Autotech Ventures. They invest in commercial, B2B transportation companies. It was a perfect match, and we quickly closed our Series B.

For more wisdom like this from other amazing female leaders, follow Golden Seeds on Twitter.

What $100 million means to women entrepreneurs

Posted on November 9, 2017January 23, 2020 by Brian Jones

Earlier this year, Golden Seeds marked a $100 million milestone. That’s the amount of funding our network of angel investors has infused into women-led companies since 2005. While it’s a notable moment for our organization, it matters far beyond our doors.

Among the 100 million reasons why this is significant are these:

Angel investors are driving company growth in America today.
A steadily rising number of those angels are women.
More seed investments are reaching promising, women-led companies.

Angel investors drive company growth.

There are approximately 300,000 angel investors in the U.S. evaluating early-stage companies. They put their own capital into about 65,000 companies every year, and they account for $21 billion worth of annual startup investments. Along the way, these seed investors take scores of meetings (ours have participated in thousands of such meetings), and they give generous amounts of advice and support to entrepreneurs — even the ones in which they don’t ultimately invest.

Before 2005, little of that support went to women-led startups. Such companies comprised only 3 percent of those that got funded in 2004. Ten years later, women entrepreneurs accounted for 22 percent of all companies that earned funding. That steady increase correlates with a similar increase happening among angel investors, more and more of whom are women.

A rising number of angel investors are women.

It takes a diverse group of investors to spot a diverse group of promising, early-stage businesses. In the years that Golden Seeds has been working toward its $100 million landmark, we were also pulling more women into our network and into the broader world of angel investing.

Eighty percent of our investors are women — most of whom had never invested in startups before joining Golden Seeds. The opportunity to invest with the purpose of creating an environment that highlights high-potential, women-led companies unleashed considerable capital for female entrepreneurs.

In the years since Golden Seeds’ creation, women grew from 5 percent of angel investors nationwide to 26 percent. This means that there are nearly 80,000 women angels in the US. This is a substantial, positive development for all entrepreneurs, but for women entrepreneurs, in particular.

More seed investments are reaching women-led companies.

Women entrepreneurs are everywhere, in every sector, leading businesses that warrant investment. However, they previously did not have the opportunity to present their plans for the serious consideration of angel investors.

The men and women of the Golden Seeds network — 650 of them over the years — have changed that reality for the nearly 150 women-led companies in which we’ve invested, as well as for more than 3,200 companies overall that have applied to Golden Seeds for investment consideration.

Perhaps the greatest benefit of $100 million worth of investment for these companies is the leverage they gain to raise more money in later funding rounds and accelerate their growth. The companies that are included in the $100 million have gone on to raise more than $750 million more in capital, thanks in part to Golden Seeds’ due diligence, which enables syndication, as well as the post-investment support of introductions, advisory and board positions, and follow-on capital from our investor network.

Early money and leadership creates momentum, and it’s been very satisfying to know that Golden Seeds has played a role in the initial stages of so many promising businesses.

Learn more about Golden Seeds companies and how women entrepreneurs are achieving success with Golden Seeds.

What we’ve learned from evaluating more than 3,000 women-led startups

Posted on November 2, 2017January 1, 2020 by Brian Jones

Since Golden Seeds opened its doors in 2005, we’ve evaluated more than 3,000 women-led startups. While those evaluations have led to more than $100 million invested in 143 companies, they’ve also taught us quite a bit about the work of female entrepreneurs.

Below are seven of our key learnings:

1. Great women entrepreneurs exist all over the country.

Women don’t pick up and move to startup hotspots, but they are all over the country. From New York to Boston to Silicon Valley to Texas and beyond, women are starting companies. This is a primary reason why our network of angel investors is also nationwide. We want to find the best women entrepreneurs, wherever they are.

2. Women entrepreneurs often start companies after they have had five to 10 years of experience in their fields.

When women start or lead companies, they often bring with them the perspective of experience. We’ve certainly seen women who are still in college or are recent graduates, but the trend leans heavily toward women turning to the idea of entrepreneurship later in their careers.

3. Women entrepreneurs often focus on solving problems.

Perhaps because so many women leaders have worked in their fields for a number of years, they are less likely to create products simply because they realize it’s possible or that the technology suddenly exists to do it.

Rather, they focus on addressing real issues or problems they’ve observed. And the issues they tackle are significant — health care, clean technology and cybersecurity are examples. Many times, these companies are finding solutions to problems where they have streamlined a solution that adds efficiency and speed — and saves money.

4. Women entrepreneurs are capital efficient.

Despite great advances in the past 12 years of women entrepreneurs successfully raising capital, women are still likely to raise less money than their male peers. Women know this — that they most likely will start with less capital and may also need to scale their companies with less funding than men. This is a difficult reality for women entrepreneurs, but it often makes them more efficient and focused on the most effective use of their resources.

5. Women create more diverse company cultures.

There is a perception of startup cultures that trends toward 24/7 workstyles and homogenous teams. These are not the kinds of cultures women leaders are fostering. The entrepreneurs we’ve assessed design their companies for the diverse needs of diverse workforces. They create policies that are good for everyone, and they are likely to be collaborative, inclusive and consultative with their teams.

6. Women entrepreneurs are active in every sector.

If you’ve assumed that women start businesses mainly in one sector or another, think again. The teams we’ve evaluated over the years work in enterprise technology, healthcare and life sciences, financial services technology, artificial intelligence (AI) and more. Women entrepreneurs have the skills, education and talent to start businesses in every sector.

7. Women are increasingly becoming serial entrepreneurs.

Angels invest their own capital, so they are naturally risk averse and tend to value serial entrepreneurs with measurable track records. When Golden Seeds first started, we rarely saw serial entrepreneurs among the women we evaluated.

That is changing.

Thus far in 2017, serial entrepreneurs have comprised one-third of the women-led companies in which we have invested.

The rise of women who have founded multiple businesses is a significant shift. These entrepreneurs have the swagger of successful exits — or even unsuccessful ones, through which they’ve learned critical lessons and acquired the grit that will contribute to their future success.

How “big chill” of harassment scandals hurts women entrepreneurs

Posted on October 27, 2017January 23, 2020 by Brian Jones

Much has been written over the last few days and weeks about the stories of men behaving badly with female colleagues, staff and junior associates. From Hollywood to Silicon Valley to TV networks and beyond, the common theme is that women have much at stake in getting along with powerful men, and therefore stay quiet about this behavior — until a high-profile case spurs a social media outpouring that illuminates the breadth of the problem.
But another alarming problem that has emerged amid these scandals is that men are increasingly hesitant to meet alone with women. Recently, Claire Cain Miller wrote in the New York Times that, “Men describe a heightened caution because of recent sexual harassment cases, and they worry that one accusation, or misunderstood comment, could end their careers.”
What a sad state of affairs, no pun intended.
Mentorship key to success for startup foundersMost of us, men and women both, can recount a meal or meeting with a colleague or boss that was game-changing for our career.
For much of our careers, women have been in such a minority, that these mentors were likely to be men — men who saw potential and nurtured our talents. It was only natural that we met with male colleagues, shared travel, had meals and bonded as teams. As we became more senior, we women had the similar opportunity to mentor men — all a natural and productive development.
At Golden Seeds, we focus on women-led companies and have invested more than $100 million in nearly 150 companies over the past 12 years. Along the way, we have evaluated more than 3,000 businesses founded by women entrepreneurs. These founders benefit mightily from the close relationships they forge with their advisors, board members and investors. These are people who have much to offer entrepreneurs — their business acumen, financial expertise and professional experiences.
And many of these trusted mentors are men.
The growth of women entrepreneurs in the U.S. (and elsewhere) is a great story of the past decade — women now represent 38 percent of all business owners in this country. Many of them have the vision, grit and talents to grow substantial companies, often because they attract the capital they need and surround themselves with the people who can provide guidance as they grow. This guidance is often provided in informal settings, spontaneously as needs arise and build on mutual trust.
In defense of the one-on-one mentoring meetingIn a world where McKinsey tells us it will take 100 years to get to gender parity in corporations, the last thing we can afford is for women to be even more distanced from the critical bonding that executives must form as leaders.
And yet, it appears that is what could happen in response to recent news.
That New York Times story quotes an anonymous tech investor, who reportedly said, “A big chill came across Silicon Valley in the wake of all these stories, and people are hyperaware and scared of behaving wrongly, so I think they’re drawing all kinds of parameters.”
The writer notes, “Some [investors] are avoiding solo meetings with female entrepreneurs, potential recruits and those who ask for an informational or networking meeting.” And she quotes her unnamed source as saying, “Before, you might have said, ‘Of course I would do that, and I will especially do it for minorities, including women in Silicon Valley…‘Now you cancel it because you have huge risk of reputation all of a sudden.’”
As we learn of some men sidestepping meetings with women entrepreneurs to avoid the appearance of impropriety, we must note that this creates a new problem, rather than solving an existing one.
We hope the spate of recent high-profile stories will not discourage the very productive relationships that must exist for startups to succeed. If you are a mentor or advisor to a woman entrepreneur, remember how crucial you are in the ultimate success of her company, and don’t let any “big chill” stop you from playing your role.
Learn more about Golden Seeds companies and how women entrepreneurs are achieving success with Golden Seeds.