The Purse

Welcome to our #113 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on a recent survey by Fidelity International which highlights that only 45% of women ‘feel financially independent’.

We know that a woman’s life trajectory is different to a man’s but women are exposed to far more financial risk which makes them vulnerable to financial shock.

Staying engaged around finances and investing for the long-term is crucial for women.

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

And don’t forget to listen to The Purse Podcast interview with Dr Louann Brizendine. We talk about the menopause, how the female brain gets stronger and better in midlife and how to stay on track with your finances.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

45% of women ‘feel financially independent’

Survey highlights the harsh financial reality for the majority of women

Based on a survey by Fidelity International, the majority of women (55%) do not feel financially independent, as reported by Yahoo Finance.

Here are the key findings from the survey:

* 45% of women feel financially independent

* 38% of those who do not consider themselves financially independent feel unable to make their own life choices

* 11% of women are doubtful they will ever achieve financial independence

* 48% of women cited the high cost of living as the biggest barrier to improving their finances

* 19% of women are worried about their ability to support themselves or their family

* 28% are free from money worries

* 32% feel confident about reaching their financial goals

* 31% are expecting to live comfortably in retirement

Fidelity also found women in the UK were more likely to feel financially secure than those in Germany (33%) and Japan (38%) and financial security was at similar levels in Singapore (46%). Those in China (69%) and Taiwan (72%) tended to report feeling more secure.

Maike Currie, investment director at Fidelity International said:

“Low income levels, fears about job security and the compromise many women are forced to make between work and caring responsibilities are all named as barriers to achieving financial independence…

We all have a central role to play in breaking down the barriers which are currently stacked against women and impact their financial wellbeing.”

Women still earn less …

…than men regardless of whether they have children and on average have one fifth of the pension pot men do when they retire.

They are more likely to have career interruptions and do far more unpaid childcare work than men do.

Women who are divorced or separated have less savings than their ex-partners and are more likely to suffer from a mental health condition which can become a barrier to work especially as women get older.

And 9 out of 10 women will be the sole decision-maker in their household about their finances at some point in their life.

Not only is a woman’s life trajectory different to a man’s but women are exposed to far more financial risk, which makes them vulnerable to financial shock.

In reality, women need to…

…save and invest far more than men to build financial resilience, financial security and secure their financial future.

Engaging around finances and investing for the long-term is critical for women.

If married, in a partnership or a couple, it is not a good idea to ‘handover’ responsibility to your partner.

Always stay engaged. And be involved in all key financial decision-making.

At the very least women should arrange a weekly ‘money date’ with their partner to review the finances and discuss long-term investment goals and decisions.

And if single, women can schedule weekly or monthly check ins with a friend or accountability partner, join a community of like-minded women or work with a financial adviser or a financial coach.

What next? (Re) Listen to:

* Marriage and divorce: how to manage your money with Mary Waring

* The equities market: ETFs, sectors, cyclical vs value stocks and responsible investing with Rebecca Chesworth.

News in Brief

Financial news

* The biggest bond bubble in 800 years continues to deflate after the latest inflation numbers shake up the bond markets. The value of global bonds has dropped by another $493bn this week, bringing total loss from the all-time high to $7.94tn.

* The Nasdaq plunged 4.5% on Friday into bear market territory again. Now down 22.5% from Nov 2021 high. (The Nasdaq fell 13% in April which is the biggest monthly drop since 2008).

* Russia appears to be on track to avoid looming sovereign default after tapping its domestic Dollar reserves to make payments on 2 foreign bonds.

* The US Federal Reserve 2022 hawkishness hit another all-time high. Now more than ten 25bp Fed hike moves priced in for 2022, so markets see Fed Fund rate of 2.9% by Dec 2022.

* US Economy unexpectedly shrank in Q1, the first contraction since 2020. as GDP fell at 1.4% annualised rate after a 6.9% pace of growth in Q4 2021.

* The Bank of England (BoE) is set to raise interest rates again on Thursday to their highest level for 13 years. The Bank’s policymakers are predicted to increase rates from 0.75% to 1% – a level not seen since early 2009.

* Cathie Wood’s Flagship Fund Ark Innovation fared worst-ever month with a 29% drop.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin climbs above $40,000 but struggles to stay above that level. ‘There has been particularly heavy selling pressure ‘at the $40,000-$40,500 price levels’ (see the current price of bitcoin).

* Bitcoin: market senitment is not as strong as on-chain activity.

The state of Bitcoin can be demonstrated with on-chain metrics that paint a more bullish picture than the current derivatives market sentiment.

* Swiss National Bank not ready to hold bitcoin as reserve currency. They currently do not believe ‘ bitcoin meets the requirements of currency reserves’.

* Goldman Sachs offers its firm bitcoin-backed loan. Goldman has reportedly offered its first ever lending facility backed by BTC as the Wall Street giant deepens its bitcoin offerings.

* Fidelity to allow retirement savings allocation to bitcoin in 401(k) accounts. The family controlled asset manager said MicroStrategy, a major bitcoin corporate backer, will be the first employer to use the new product, which will be made available to other employers by the middle of the year.

* State of Ethereum Q1 2022: network revenue increased 46% from $1.6bn to $2.4bn, ETH Staked rose 111% from 5.2m to 10.9m, DeFi TVL increased 82% from $49.1bn to $89.5bn.

* Beeple: next era of NFTs will focus on 'emotional connection and utility'.

The Purse Podcast

We cover the following in our conversation:

* The menopause aka ‘the upgrade’

* What happens to the female brain as we transition

* Why women over 50+ are more likely to ask for a divorce

* How these changes affect a woman’s financial life

* And how to make sure your well-being and finances stay on track.

Please enjoy! Listen here on Apple podcasts and Spotify+

Coffee Break? Read This

* How the best bosses interrupt bias on their teams

* How will we count the cost of having a baby during the pandemic?

* My mother was a ruthless ditcher of friends – should I dump my most annoying mates?

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #112 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on recent surveys by etoro and Fidelity Investments which highlight that more women have started investing since the pandemic.

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

And don’t forget to listen to The Purse Podcast interview with Jill Pay who leads The Gender Index, the largest ever study into female entrepreneurship in the UK. 

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Survey: 42% of women started investing during the pandemic

Recent surveys indicate that more women are engaged around their money and invest.

According to a recent survey by eToro, two in five or 42% of women started investing in either 2020 or 2021, as reported by CNBC.

Whilst half of all women said they have become more interested in investing during the pandemic, based on separate research by Fidelity Investments.

Key findings:

* 50% of women investors in the etoro survey plan to hold their investments for 6 years or longer.

* Separately, 67% of women are now investing outside of their retirement savings, up from 44% in 2018, according to Fidelity. 

Whilst the pandemic has forced women to focus on their finances, investment platforms and mobile apps also have made it easier to invest.

And social media has helped to demystify how to invest with the rise of ‘finfluencers’, memes and general availability of information.

Here is a summary of how women invest (data from 2021, Fidelity Investments):

* Cryptocurrencies: 23%

* ESG/sustainable investments: 24%

* Money market funds or CDs: 50%

* Mutual funds or ETFs: 63%

* Individual stocks or bonds: 67%

Investing: what women should consider

* Investing goals: why are you investing?

* Time horizon: you should invest for at least 5-7+ years

* Risk tolerance: if you are investing with a longer time horizon, you can afford to invest in more risky investments. If you may need the money in say 3 years time, invest in less risky investments or in a savings account with high interest.

* Diversified portfolio: spread your risk across different asset classes. Professional investors tend to more concentrated, however it makes sense to diversify as a retail investor.

* Tax incentives: there are tax efficient ways to invest. For example, investing in a stocks & shares ISA (UK) means you can invest up to £20,000 tax free.

* Speak to a financial adviser or a financial coach.

What next?

* (re) listen to The Purse Podcast interview with Heather McGregor on how women take charge of their money.

* (re) listen to The Purse Podcast interview with Dr Kate Levinson on how women can build a healthy relationship with money.

News in Brief

Financial news

* IMF cuts global growth forecast to 3.6% (by 0.8%) as Ukraine war hits neighbours hard. The global economy growth will suffer with higher inflation than expected.

* The value of global bonds has dropped by another $524bn this week, bringing total loss from ATH to $6.9tn.

* US stocks fall in a dramatic reversal as yields surge. Nasdaq 100 drops 2% as US 10 year yields jump by 7bps to 2.9%.

* The European corporate bond market’s ongoing sell-off has reached historic proportions, with high-grade bonds losing a record 8.6% in total return terms since their August peak.

* US Federal Reserve Chairman, Jay Powell signals a 0.5% raise in interest rates in May. The US has the highest inflation in 40 years.

* A perfect storm of surging fuel and food prices, Fed rate hikes and mounting debt is pushing emerging markets to the brink. Turkey, Egypt & Vietnam head the Bloomberg list of major emerging markets vulnerable to fallout from the war in Ukraine.

* Russia is on course for its first external default in a century after its payment of rubles on two dollar bonds was ruled a ‘potential failure-to-pay event’.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Crypto prices dived along with most major stock markets after Federal Reserve chair Jerome Powell said a 50 basis point interest rate hike is ‘on the table’ for May.

* Bitcoin’s supply is more distributed: retail investors (entities holding less than 10 BTC) increasing their share of circulating supply from 1.51% in 2012 to 13.9% in 2022 on average (see the current bitcoin price).

* Morgan Stanely says that bitcoin is close to becoming a currency (report). Morgan Stanley said the integration of Strike and BlackHawk Network lets bitcoin enter physical locations, which makes up 85% of U.S. transactions.

* Michael Saylor says MicroStrategy stock is (essentially) serving as a spot bitcoin ETF as investors wait for the first one to be approved. (MicroStrategy has spent $4bn on bitcoin to date).

* Ethereum earned global investors $76.3bn in realised gains in 2021 thanks to DeFi (report) (see the current ETH price).

* Ethereum foundation reveals 80% of treasury holdings are held in ETH. ‘The EF believes in Ethereum’s potential, and our ETH holdings represent that long-term perspective,’ said the non-profit, which oversees the development of Ethereum, in a treasury disclosure report published April 19.

* Despite the cooling of the NFT market, on Wednesday, Coinbase- the largest crypto exchange in the U.S., launched its long-awaited marketplace for digital collectibles.

* Moonbirds shatter OpenSea records with $240m traded within four days of launch. The profile-picture collection now boasts a floor price of 20 ETH ($62,000) – eight times its launch price of 2.5 ETH ($7,800).

* Nike and RTFKT reveal CryptoKicks—their first Ethereum NFT metaverse trainers. The digital shoes can be altered via collectible ‘Skin Vials’, which can be swapped to enable varying styles.

* Weekly NFT sales jump 20% to $246m. These were the 5 best-selling digital collections: Bored Ape Yacht Club, Cool Cats, CryptoPunks, Doodles, The Sandbox.

The Purse Podcast

We cover the following in our conversation:

* Female founders

* The Gender Index

* The Rose Review

* Closing the gender funding gap

* And more

Please enjoy! Listen on Apple podcasts and Spotify+

Coffee Break? Read This

* Women are voting-with their wombs

* Why do so many incompetent men become leaders?

* Mental time-travel is a great decision-making tool

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #111 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on European VC and female founder data for Q1 2022. The numbers indicate a fall in capital invested in female (co-)founders which seems to correlate to a deteroriating economic environment.

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

And don’t forget to listen to The Purse Podcast interview with Kisha Mays. Kisha is a successful serial entrepreneur, an angel investor and a philanthropist. We talk about how female founders can generate $1m+ business.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

European VC: a look at female (co-)founder data in Q1 2022

Venture capital investments to female founders has dropped compared to Q1 2021.

Female founders struggle to raise capital from venture capital (VC) firms.

This is despite female founder outperformance, their startups exiting earlier at higher valuations per dollar invested, and VC funding surging in recent years.

Last year in Europe, only 1% of VC funding of total capital invested was allocated to startups founded solely by women, as per Pitchbook.

Here are some key stats for Q1 2022:

* Female (co-)founded VC deal count %:

* Female founded only: 4.9%

* Female & male founded: 15.8%

* Female (co-)founded VC capital %

* Female founded only: 0.9%

* Female & male founded: 9.9%

* European venture capital deal flow by female (co-)founded companies

* Capital invested: €2bn (vs €3.3bn in Q1 2021)

* Deal count: 434 (vs 607 in Q1 2021)

We’re seeing a drop in VC investments going to female (co)-founders globally..

…which seems to correlate to a worsening economic environment. Inflation is running hot, central banks are raising interest rates and investors are anxious about whether or not a global recession is imminent.

If female (co)-founded startups are (wrongly) regarded as ‘more risky’, mostly male VC investors will allocate capital to ‘what they know’; specifically investing in male-founded teams during times of uncertainty.

It’s why female investors are key…

…because we know that women tend to invest in female founders at least 2x the rate men do.

They also apply a new lens to investing and represent the lived experience and perspective of 50%+ of the population.

Female founders are not only up against gender bias, but they have to spend more time educating the majority male investors on their market and product.

It follows that female entrepreneurs have less resources to run their company for longer, so when they do raise capital (for their startup), they tend to be more effective money managers and generate a better return on investment.

As more female founders exit their companies and generate higher exits, we’re likely to see more capital flow back into women.

Women (and men) investing back into women is a crucial part of diversifying the money flow, backing female founders, growing entirely new industries and companies. And ultimately driving higher returns on investment.

What next? (Re) read this:

* Investing in female founders of colour

* Activitist investors, women-led hedge funds and women launching their own VC funds

News in Brief

Financial news

* Russia may be in default, Moody's says. Russia paid roubles on dollar bonds. Russia defaulted on foreign bonds after 1917 revolution, and defaulted on domestic bonds in 1998. Russia's economy facing worst year since 1994.

* Lithuania's inflation has jumped to almost 16% but the European Cnetral Bank (ECB) will print another €90bn by June and probably even more.

* The Euro depreciated by almost 10% against the dollar in the past 12 months due to an inactive ECB. This puts the Euro in a worse position than the Russian Ruble, which has lost only 8%.

* The ECB's Christine Lagarde has said: the Eurozone is in different place than US economy. Therefore it is premature to talk about quantitative tightening. (see graph here)

* The ECB leaves all rates at record low as expected. Plans to buy €40bn in April, €30bn in May, €20bn in June. Asset purchases should be concluded in third quarter but this is not set in stone.

* US inflation jumped 8.5% in past year, highest since 1981 and higher than expected. But core CPI rose slower than expected w/6.5%.

* UK inflation hits 7% in March as fuel prices surge. March reading is the highest in 30 years and increases pressure on Bank of England to raise interest rates again. It is expected that UK households’ real income will contract this year at the sharpest rate since records began in the 1950s.

* Big Short investor Michael Burry warns US stocks are heavily overvalued and poised to tumble. Noted the S&P 500's price-to-sales ratio has nearly doubled in 10yrs. Price-to-sales ratio compares market cap to its revenues, instead of its profits or net assets.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin price nears $41,000 as US inflation jumps to 8.5%. Bitcoin decoupled from the Nasdaq as inflation numbers were revealed. The Nasdaq traded down 2.35% (see the current bitcoin price).

* Bitcoin-backed mortgages and pristine collateral discussed at Bitcoin 2022 (conference). Bitcoin as an asset is a perfect form of collateral and will likely be used to provide financial backing for mortgages and other forms of debt.

* Traders move ETH out of centralised exchanges and into DeFi. On a percentage basis, Ethereum’s centralised exchange balance is at its lowest level since July 2016 — when ETH traded for just $10. Investors are bullish about ethereum ahead of ‘The Merge’ (see the current ether price).

* Ethereum’s ‘Merge’ delayed despite successful ‘Shadow Fork’ test. It is anticipated that The Merge will now take place a ‘few months after June’.

* MetaMask’s institutional arm makes push for DAOs with new custody deals. The ConsenSys-owned wallet provider says it want to bring ‘all organisations on planet earth into Web 3.’

* Sotheby’s to host an NFT auction for generative art this month. Sotheby’s generative NFT art auction intends to include pieces spanning the history of generative art, beginning in the 1960s through present day, and is set to occur between April 18-24.

* Michael Saylor, CEO of MicroStrategy, is bullish on crypto regulation. Saylor calls US Treasury Secretary’s speech on digital assets last week a ‘green light’ for the crypto economy. Saylor said that the bitcoin price could eventually be $10m+.

The Purse Podcast

We cover the following in our conversation:

* female founders

* how to generate a $1m+ revenue startup

* Kisha's $100m global initiative investing in female founders

* and more

Please enjoy! Listen on Apple podcasts and Spotify+

Coffee Break? Read This

* How mums shape the world

* ‘A seat at the table’ is not the solution for gender equity

* Being childfree: 5 women on why they chose not to have kids

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #110 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on bitcoin and ether.

In a note written by Bloomberg analysts, ether is ‘massively undervalued’ and bitcoin is heading to $100,000. They claim that the ‘war is enhancing bitcoin's value as a global digital-reserve asset, while ethereum evolves into the collateral of the internet.’

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Ether is ‘massively undervalued’ and Bitcoin heading to $100,000, according to Bloomberg

Market analysts from Bloomberg Intelligence indicate a bullish sentiment.

Bitcoin and ether are outperforming most assets, as per Bloomberg Intelligence/Coin MarketCap. And this is at a time when central banks are reducing money printing (QE) and raising interest rates.

And according to Bloomberg Intelligence, Russia's invasion of Ukraine marks ‘another milestone for the merits of cryptos.’

Analysts Mike McGlone and Jamie Douglas Coutts claim that the ‘war is enhancing bitcoin's value as a global digital-reserve asset, while Ethereum evolves into the collateral of the internet.’

Whilst cryptocurrencies were exposed to volatility at the start of this year, ‘the war and disruption in markets like nickel is adding to the narrative that Bitcoin is the most fluid, 24/7 global trading vehicle in history and well on its way to becoming digital collateral’.

Bloomberg Intelligence also claims that it is just a matter of time before the price of bitcoin is $100,000 due to its limited supply (21m units only).

(Investors such as Cathie Wood, predict the bitcoin price to be $500,000 within 5 years and others expect bitcoin price to hit $1m+ by 2030).

Since Russia invaded Ukraine, bitcoin has gone up by 20%, which is double the gains of crude oil.

According to McGlone and Coutts, gold’s poor performance during the invasion indicates ‘the diminishing use of the old-guard analog collateral versus the digital upstart.’

And they consider ether to be undervalued ahead of the merge between the network's Proof-of-Work and Proof-of-Stake blockchains (expected to complete this summer).

They suggest that ether should be valued at $6,100, up 70% from current levels. (Investors such as James Wang, who is ex analyst from Ark Invest predict the ether price to be $150,000 by 2023).

Ether, like bitcoin, is becoming a deflationary asset. As per the note:

‘The upcoming merge, shifting ethereum from a Proof-of-Work model to Proof-of-Stake, will convert ether into an equity-like instrument with elegant supply/demand dynamics that could drive significant interest in the asset.’

As long as adoption and demand for ether and bitcoin continues, the price will go up.

What next? Read:

* (Re) read Women: why NOT investing is risky

* (Re) read: Women: why invest in crypto

News in Brief

Financial news

* Global bond rout deepens with US 10 year yields jump to 2.72%, German 10 year yields rise to 0.72% sparked by aggressive Fed rate hike fears. Goldman’s Hatzius sees chance Fed may need to hike rates past 4%.

* The Pound weakens under $1.30 for first time since November 2020.

* Russia’s Ruble recovers to pre-war levels even as sanctions pile up and default is looming. Foreign oil and gas buyers offer Putin’s government a lifeline.

* Commodities could surge by as much 40% (far into record territory) if investors boost their allocation to raw materials at a time of rising inflation, JPMorgan says. Raw materials hit record last month following Ukraine invasion.

* The European Central Bank (ECB) balance sheet hit another ATH at €8,754bn. Total assets rose by another €43.4bn mainly driven by the quarterly revaluation of #Gold reserves. ECB balance sheet now equal to 83% of Eurozone GDP vs Fed's 37% and BoJ's 136%.

* ECB introduces a new word into the eco lexicon in the latest minutes - not ‘stagflation’, but instead ‘slowflation’, meaning positive GDP growth, which is losing momentum & at the same time inflation.

* Peter Thiel says a ‘finance gerontocracy’ — Warren Buffett, Jamie Dimon and Larry Fink — is keeping Bitcoin from reaching $100,000. Billionaire calls Berkshire CEO a ‘sociopathic grandpa.’

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin and ether fall (4% & 7% respectively) as the Fed moves to shrink the balance sheet by $95bn a month and increase interest rates. (See the current bitcoin & ether price).

* MicroStrategy’s Michael Saylor and ARK Invest's Cathie Wood aren’t worried about bitcoin and regulation.

* Bitcoin is Robinhood’s top ‘buy’ asset, ethereum and dogecoin also make the top 10. There are also plans for Robinhood to integrate the Bitcoin Lightning Network into its technology stack.

* Ethereum gas usage was up 13% in March from the previous month amid greater demand for block space, according to DeFi analytics firm HashEx in a note shared with CoinDesk.

* Ethereum Layer 2 networks hit ‘critical mass’ as The Merge approaches.

* Stealth NFT drop triggers record ether burn. Ultra Sound Money tweeted that 4,436 ETH burned over an hour. The record-breaking blocks have been attributed to a stealthy NFT drop from social media influencer and entrepreneur, Gary Vaynerchuck. 

* Cash App now offers 'Paid in Bitcoin' feature, 'Lightning Receive' coming soon. The company statement said: ‘Soon, customers will also be able to receive bitcoin via the Lightning Network by simply sharing your QR code or payment request. This new feature furthers Cash App’s mission to make bitcoin usable as a currency’.

Coffee Break? Read This

* What’s your happiness score?

* The war in Ukraine could change everything

* 4 lessons the pandemic taught us about work, life and balance

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #109 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on female-founded startup called Chief which has raised $100m in Series B investment, and achieves unicorn status.

12,000 female leaders are registered on the platform and an estimated 60,000 women are on the waiting list.

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

And don’t forget to listen to The Purse Podcast interview with Jordan Dargue. Jordan is a founding executive, NED, investor and talent & growth consultant.

We talk about investing in women in the UK & the north of England, female angel investors and more. Please enjoy!

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Chief: female-led startup raises $100m and achieves unicorn status

A platform and community aimed at women leaders is growing fast

Chief, a private network for female executives, has raised $100m in Series B investment. And has become a female-led unicorn valued at $1.1bn, as reported by Crunchbase.

Founded by CEO Carolyn Childers and Lindsay Kaplan in 2019, the company has achieved significant growth during the pandemic.

12,000 female executives and C-Suite women are registered on the platform and an estimated 60,000 women are on the waiting list.

CEO Caroline Childers has said in a statement:

‘Women have always been powerful, and our goal is to magnify and cross-pollinate that influence so women executives have a global network to support them’.

Chief’s growth comes at a time when..

..in the US, just 41 of the Fortune 500 companies have female CEOs as of last year, a record at 8.1%.

In the UK, as of 2021, only 18 women were in the position of chief executive officers (CEOs) at FTSE 100 and FTSE 250 companies.

Women continue to be underrepresented as female angel investors, venture capitalists as well as in private equity.

This in part explains why female founders struggle to access the capital for their startups and, on average, generate less revenue than their male counterparts.

The impact on women’s purse or their net worth is also significant whether we consider this from a female investor or female founder point of view.

In 2021, 83 startups founded or co-founded by women…

… became unicorns, or private companies valued at $1bn or more.

That was also a new record, but still represented just 13% of the 595 new unicorns minted in 2021, as per Crunchbase data.

Read more:

* (re) Read The Purse article about Beyond The Billion and closing the gender funding gap

* Listen to The Purse Podcast with Shelly Porges about closing the gender venture gap

News in Brief

Financial news

* Recently the Bank of Japan started printing money again (QE) to keep long-term interest rates low. Meanwhile, BoJ's balance sheet now equals 136% of Japan's GDP. In comparison, the ECB and the Fed look like ‘amateurs’.

* IMF warns Russia sanctions threaten to chip away at dollar dominance as the dollar's share of global FX reserves has dropped to 58.8%, a fresh all-time low, at end-2021 and so even before the war in Ukraine and the Western sanctions.

* US jobs market in March remains hot. Unemployment rate drops to 3.6% near pre-pandemic low. And job openings outnumber unemployed.

* Eurozone inflation accelerates to another all-time high. March consumer prices jumped 7.5% year-on-year vs 6.7% expected. Overshoots in Spain and Germany have spurred rate-hike bets as even core inflation tops 2% target by 50%.

* In the UK, energy costs increased 54% on Friday, 1 April, meaning providers can charge up to £1,971 a year for customers with average use who have a direct debit set up.

* More firms expect to raise prices in the UK than at any time since the 1980s. Sales are stagnant and last month, data showed consumer confidence fell back to levels last seen in November 2020, just before the second national Covid-19 lockdown.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin ends closely following the S&P 500. Bitcoin closed the quarter down 2%, tightening the correlation with the S&P to nearly 0.9 (1 is perfect correlation, -1 is perfectly inverted).

* Bitcoin reached highs of $48,000 this week, before dropping down to $45,000. It is currently trading at circa at $46,000 (see the current price of bitcoin).

* The 19th million bitcoin has been mined. With less than 2m bitcoin left to be mined, Bitcoin’s limited supply has just gotten even more limited.

* Bitcoin mining revenues climb back up to $1.21 billion in March. After falling consecutively since October, bitcoin mining revenues had a month-over-month increase of 14%.

* A post-merge ethereum could attract institutional investment: staked ETH could be an ideal investment vehicle for major institutions looking to dip their toes into crypto holdings. ‘The Merge’ is due to take place in June (see current price for ether).

* Tesla Taps MakerDAO-Powered Lender for $7.8M real estate deal. The $7.8m loan will be used to finance a new repair and collision centre for Tesla.

* Bored Ape Yacht Club drives NFT sales to $300 million over the past week. NFT sales had a breakthrough year in 2021, and over the past 12 months, volume has hit $24bn.

* Shiba Inu's Metaverse will feature more than 100K land plots. Developers have decided to use ether, as a land pricing token. Land buyers will be able to generate passive income, gather in-game resources, and generate rewards, which the team said it will reveal soon. (See the announcement here).

The Purse Podcast

We cover the following in our conversation:

* the startup ecosystem in the UK/north of England

* how the pandemic changed investing

* female founders

* female angel investors

* how female founders can raise seed investing

Please enjoy! Listen on (including) iTunes and Spotify+

Coffee Break? Read This

* The ‘authority gap’ between men and women hurts us all

* 4 misconceptions about PoW vs PoS

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #108 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on the rising cost of living and the steps you can take to protect your money.

April could be the toughest month for UK household budgets. It’s important to understand how your income will be affected and plan what you can do.

Check out the Spring Statement calculator created by The Guardian to work out how your income will change.

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

Don’t forget to listen to The Purse Podcast with Anna Raptis who is the Founder and CEO of Amplifica Capital. Amplifica Capital is the first female focused VC firm in Mexico. Please enjoy!

I hope you enjoy this week’s newsletter.

Until next week,

Jana

The cost of living is going up: how can you protect your money?

April could go down as the toughest month for UK household budgets.

A combination of higher prices and tax changes - means that April 2022 could possibly go down as one of the toughest months for UK household budgets.

According to the Financial Times, it’s ‘rough weather ahead’ based on Rishi Sunak’s Spring Statement which he delivered this week.

Whilst Sunak highlighted support he is providing to hard pressed households, most people will suffer a financial battering in the years ahead.

After-tax household disposable incomes in the 2022-23 financial year will see ‘the largest fall in a single year since records began in 1956-57’. This is based on research by the Office for Budget Responsibility.

Here’s a summary of what you can do, as per Fidelity International:

* Income tax:

With more money potentially being taken away in tax, it makes sense to invest more money into a pension where contributions benefit from tax relief. This will allow you to avoid some of the income tax freeze.

It’s also worth noting that Gift Aid relief - the tax relief available on charity donations - will remain at 20%.

* National Insurance:

National Insurance will increase for those earning £50,000+ will pay £108 more and higher earners, such as those earning £100,000, will pay £6,611 per year, which is £730 more than at present.

Some employers allow their employees a process called Salary Sacrifice; to give up a fraction of their salary and to spend it on work benefits such as childcare vouchers, bike-to-work schemes or pension contributions.

This can add real value but importantly it reduces your income and therefore how much tax you pay.

* Fuel and energy bills

The Ukraine War has put upward pressure on prices, and the price cap for gas and electricity bills will rise in April from £1,277 to £1,971 per year, an increase of £693.

And another big rise in forecast is expected in October.

The surge in oil prices means that petrol and diesel prices have risen to record levels, with the average price for a litre of unleaded now at 167.3p after rising 18p in the past month alone. Rishi Sunak announced a 5p per litre reduction in fuel duty in the Spring Statement, but this does little to elevate the price increase.

A few financial incentives are available for those willing to invest in renewable energy measures or efficiency improvements.

New measures like wind and water turbines will now qualify for the 5% VAT discount.

This could cut the cost of installing solar panels by £1,000, and the cost of annual energy bills by £300.

* State pension and other benefits:

Whilst the State Pension will rise by 3.1%, this is still below the 6.2% inflation rate, which is expected to rise to 8% in the second quarter (Q2) and closer to 10% by the end of the year.

That means that State Pension and other benefits will fall in real terms.

Make sure that you are entitled to the maximum state pension possible. In order to get the full state pension you will need 35 years of National Insurance Contributions.

* And invest as much as you can, monthly

If you are able to cut back on unnecessary spending, consider investing that money into a low-cost index fund, a thematic ETF and/or in crypto such as bitcoin or ether.

Consider allocating a set amount of your monthly pay cheque or income to your investments. Even if this is 1-5% of your monthly income, that is ok.

But your target should be at least 20%+.

Remember, the important point here is to create the habit, continue to invest, even if small amounts. Just keep going. Being consistent pays off.

Your investments will compound over time and your future self will be glad you did.

What next?

* How will Rishi Sunak’s Spring Statement affect you?

* Cost of living saving tips with Martin Lewis

* Check your National Insurance Record here.

* Use the Spring Statement calculator to work out how your income will change.

News in Brief

Financial news

* The US Federal Reserve balance sheet hit a new all-time high at $8,962.5bn as they bought more mortgage-backed securities and US Treasuries in the past week. Total assets now equal to 37.3% of US GDP.

* Russia plans to demand Ruble payments for natural gas purchases from European nations, deepening its standoff with the West and potentially aggravating Europe’s worst energy crunch since the 1970s. European gas prices surged 30%+ after the news.

* The markets price in 7+ rate hikes by the US Federal Reserve this year.

* UK Chancellor, Rishi Sunak announced the Spring Statement which he said ‘delivers the biggest net cut to personal taxes in over a quarter of a century’. However it has been heavily criticised. The majority of people will be worse.

* UK inflation jumps to 6.2%- a new 30-year high as soaring energy costs, fuel bills and food prices drive the worst cost of living squeeze in decades. (Inflation is expected to rise to 8% in Q2).

* The Office for Budget’s Responsibility warns that living standards will fall at the fastest pace on record (UK). Real household disposable income is forecast to fall at the fastest annual rate since 1956.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin tops $44,000 amid rumours of Terra’s Foundation focused on UST, the world's fourth-largest stablecoin, is accumulating the top cryptocurrency as a reserve asset. (See the currency price). Bitcoin has rallied more than 10% since the U.S. Federal Reserve (Fed) raised borrowing costs by 25 basis points on March 16.

* On Tuesday, Ether (ETH), broke the $3,000 mark for the first time since March 2.

* Spot ETFs (US) could see approvals by 2023. A proposed change that would require crypto exchanges to register with the SEC may be key to future approvals.

* UK will reveal crypto regulations in the coming weeks. The announcement will focus in particular on stablecoins, digital assets that derive their value from existing currencies like the U.S. dollar.

* BlackRock looks to offer crypto services to clients as demand rises. The Russia-Ukraine conflict will push countries to reassess currency dependencies, Fink said in a letter to shareholders.

* NFT market shifting into a new growth phase. The proportion of minted and profitable NFT projects recently hit an all-time high, according to a graph provided in Nansen’s Minters Report.

* HaunVentures: a firm built for the next generation of the internet led by Kathryn Haun, has raised $1.5bn across two funds to invest in web3.

The Purse Podcast

We cover the following in our conversation:

* the LATAM startup ecosystem

* investing in women in LATAM

* women investors

* emerging female fund managers

* and more

Please enjoy! Listen here on iTunes and Spotify+

Coffee Break? Read This

* Top led women unicorns startups in 2022.

* How to make progress in your long term career goals.

* Feeling stuck or unfufilled at work? Here are 3 ways to help you get unstuck.

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #107 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on how you can invest responsibly.

We know the vast majority of women want to invest in ESG, so how do you ensure your ESG goals align with your investments?

The good news is, this is a fairly straight forward process.

Don’t forget to (re) listen to The Purse Podcast interview with Merryn Somerset Webb: we talk about what share owners can do to reclaim their power, the fund industry and stakeholder capitalism.

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

A brief guide: how to invest responsibly

What do you need to consider to ensure your portfolio meets your ESG goals?

Research shows that women want to invest responsibly. In fact, according to a study by Morgan Stanley, over 80%+ of women have said they do.

There is much debate about whether it is better to divest from fossil fuel and other non-sustainable investments or how to influence the fund industry and companies directly with your vote, as per This is Money.

So what steps can you take to make sure your portfolio is made up of sustainable investments?

Step 1: review your current investments-ask these questions

* What do you personally consider important (from an ESG perspective)?

* Do you (still) want to invest in the companies in your fund?

* How transparent are fund managers being about how active they are in encouraging companies to be ‘sustainable’?

* Have fund managers (eg BlackRock, Vanguard) held companies to account eg via implementing policies and voting?

* Which companies do you want to altogether exclude? eg tobacco, oil and gas.

Review the fund’s fact sheet. According to Investment Direcor, Maike Currie from Fidelity International: ‘these will provide an in-depth look into the fund, including information on the top holdings, regions and sustainability ratings and characteristics’.

Make sure to review the goals of the fund and assess how they align with your goals.

Step 2: understand the context of the global economy & financial markets

* ESG funds (UK assets under management) has grown from 2.7% in the first quarter of 2020 to 5.6% in the fourth quarter of 2021.

* In the near term, ESG funds are facing a few performance challenges.

* The average ESG global equity fund also has around 21% in technology stocks, which have struggled since the start of year.

* Long term investors continue to be interested in ESG investing.

Step 3: review your options via your investment platform or pension. And/or write to your fund

* Determine what funds and companies you no longer want to invest in and review alternative ESG options.

* Check the various definitions used by funds and companies including ethical, responsible, green and sustainable.

* If you are invested in a fund via eg BlackRock and lack visibility or require more information regarding ESG, write to your fund manager requesting this information. As a share owner, you are entitled to attend the AGM (annual general meeting), raise a resolution or vote on other people’s resolutions.

* It is worth keeping in mind that a lot of ESG funds have short track records.

Step 4: be clear on the level of risk taking

* Funds adopting ESG and focusing on responsible investments may be more volatile in the short term.

* Fossil fuels and mining have been more resilient to unstable markets and in this current climate, are likely to benefit from rising commodity prices.

* Investing in sustainable funds (only) may mean your investment portfolio is more concentrated ie is not as diversified. This exposes you to more risk.

Step 5: keep reviewing your holdings

* Continue to check your investments and regularly review performance.

* And make sure your ESG goals align with the funds you have invested in (over a given period).

What next?

* (Re) Listen to our The Purse Podcast interview with Merryn Somerset Webb about how share owners can reclaim their power from the fund industry and stakeholder capitalism.

* Read the article based on the podcast interview.

News in Brief

Financial news

* The US Federal Reserve has introduced its first interest rate hike (up to 0.25%) in 3 years to ‘fight’ inflation. The Fed expects to begin reducing balance sheet ‘at a coming meeting.’ (The 7 interest rate hikes priced in for this year seem very high). US & European stocks rise in response.

* Global exodus from Chinese markets prompts Xi to change tack. Beijing appeals to international investors after equities collapse. Top officials pledge more transparent and predictable policies after country was lumped in with Russia as an ‘uninvestable’ destination.

* US-listed Chinese stocks jump as Beijing pledges policy support. Hang Seng Tech index gained 22%.

* Nasdaq closes up 2.1% and rises 8.4% for the week. This is the best week since November 2020.

* European stocks have recovered from the shock of Russia’s invasion of Ukraine. Stoxx 600 dropped 10.6% from before invasion on 24 February to the low point on 7 March. It is now right back where it started, after the biggest weekly rally since November 2020.

* US February producer prices jump 10% year-on-year, another sign that inflationary pressures remain intense at all levels of the economy. Consumer inflation rose in February at the fastest pace in 40 years.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin mirrors stock rebound on Jay Powell’s (Federal Reserve Chairman) upbeat economic tone. Bitcoin has been trading in the narrowest range since 2020. The price jumped above $41,000 for the first time in a week. (See the current price of bitcoin).

* On Wednesday, crypto investors shrugged off Fed rate hike as bitcoin and ether post modest gains. Bitcoin ticked up 2.6% to $40,600, and ether rose almost 3% in mid-afternoon trading New York time, according to data from CoinGecko. 

* Ukrainian President Zelensky has signed a bill making bitcoin and other cryptocurrencies legal, establishing regulatory agencies and investor protections.

* Ethereum outflows from exchanges hit 2022 ($500m) peak as ETH price surges. (ETH has increased approximately 17% over the past week). Investors look to hold on to their crypto in anticipation of bullish price action. (See the current price of ETH).

* Ethereum 2.0 is coming in Q2 and 'will lay to rest' energy concerns, according to the co-founder of Consensys, Joe Lubin.

* Ethereum merge takes place on Kiln testnet. Kiln is the final public testnet before Ethereum’s transition to a proof-of-stake network. Ethereum’s multi-stage shift to a proof-of-stake consensus mechanism would validate transactions using nodes run by ‘stakers’.

* Crowdfunding has been supercharged as weapon of war. Ukraine has raised $100m+ through cryptocurrencies; tech has made it more convenient. Crypto transfers take seconds not days.

* 'ApeCoin' tied to Bored Ape NFT ecosystem debuts with planned community airdrop. Key to the token is a dedicated decentralized autonomous organization (DAO) as well as a supporting foundation.

Coffee Break? Read This

* Melinda French Gates: Courage is ‘using your voice’ to push for necessary but controversial change.

* Rebecca Minkoff goes back to the metaverse with an NFT collection for crypto fashion week.

* Bitcoin-friendly mayors view blockchain as a way to boost equality, diversity.

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #106 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on the launch of the Future Female Fund Managers Programme by the Diversity Project.

Some of the biggest institutional investors have joined a plan to double the number of female fund managers to 20% (of the total) by 2026.

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

And don’t forget to listen to The Purse Podcast with Sharon Vosmek. Sharon is the CEO of Astia and Managing Partner of the Astia Fund. Astia is a global organisation that works to level the investment playing field for startups that include women.

We talk about investing in black female founders and eliminating bias in the  investment screening process. Please enjoy!

I hope you enjoy this week’s newsletter.

Until next week,

Jana

UK investors aim to increase the number of female fund managers to 20% by 2026

The Diversity Project has announced the launch of the Future Female Fund Managers Programme.

On International Women’s Day (8 March), the Diversity Project announced the launch of the Future Female Fund Managers Programme to ‘move the dial on diversity’, as reported by Reuters.

The Diversity Project was founded in 2016 by a group of leaders in the investment and savings industry, including Baroness Helena Morrissey who is the Chair.

Some of the biggest institutional investors have joined a plan to double the number of female fund managers to 20% of the total by 2026 (currently only 1 in 10 portfolio managers are women, according to industry tracker Morningstar).

The following investors have already signed up:

* HSBC Asset Management, Schroders

* BGF

* JO Hambro Capital Management

* Fidelity International

* Newton Investment Management

* abrdn

* Aviva Investors

* Artemis

* Columbia Threadneedle.

The programme will support women…

“..in learning digital skills, how to navigate through cultural barriers and life events how to create allies and long-term sponsors, and overcome challenges when the only woman in the room..”

Trainers will include current and former female fund managers, executive coaches, and male allies – who are key in championing change.

According to the Diversity Project blog, the programme will offer a mix of online and in-person training, and will be suitable for both recent entrants, or women with more experience - working as an assistant, alternate or junior fund manager.

News in Brief

Financial news

* The price of oil soared to $140 a barrel, its highest price since 2008, in early trading on Monday, after reports that western countries were discussing a possible embargo on crude supplies from Russia, the world’s second-biggest exporter.

* S&P 500 loses 2.9% for worst week since January 2021. Russia continues to escalate its invasion of Ukraine.

* The Nasdaq China Index has collapsed another 8% to the lowest level since 2016. Global funds rapidly reducing China exposure. Country’s stocks among world’s worst since the Russian invasion.

* On Wednesday, European stocks closed up 4.7%: the best session in nearly 2 years as commodity prices ease.

* US inflation rate jumped to 7.9% in February and hits a 40 year high even before oil spike. (This was the biggest since 1981).

* The European Central Bank (ECB) increases inflation in 2022 to 5.1% vs. 3.2%. Sees 2023 inflation at 2.1% vs. 1.8%. And in 2024 inflation at 1.9% vs. 1.8%.

* Russia is on the brink of defaulting on its debt. Rating agency Fitch warned on Wednesday (the sanctions imposed since the Ukraine war are damaging the economy).

* BlackRock, the world’s largest asset manager, has taken about $17bn in losses on its Russian securities holdings because of the attack on Ukraine.

* Institutional investors to shift trillions from bonds to equities. Equity inflows could reach $230bn in the coming weeks as funds rebalance their portfolios, says JPMorgan. Cash holdings by large investors have increased sharply in recent weeks, rising above the level reached in March 2020.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin drops below $40,000, almost wiping out gains from Biden’s crypto executive order that requires US government agencies to assess the benefits and risks of creating a central bank digital dollar and other cryptocurrency issues (see the current bitcoin price).

* Nearly 30K BTC leaves Coinbase Pro in 3 transactions. If confirmed, someone could have made a serious commitment to BTC worth over $1bn at around $39,000.

* A vote by the Monetary Committee of the European Union's parliament on the EU's Markets in Crypto Assets (MiCA) legislation will take place on Monday, March 14. As it stands, it definitively condemns the future of crypto-assets in Europe. By banning Bitcoin and Ether, by complicating the use of NFT and DeFi, the European Parliament is mortgaging our monetary and financial sovereignty.

* 10m ether now locked on Eth 2.0 staking contract. The landmark figure represents over $26bn worth of the asset at current prices.

The Purse Podcast

We cover the following in our conversation:

* investing in black female founders

* gender & racial bias

* standardising the fundraising process

* the VC industry (and what needs to change)

* how black female founders can raise funding

Please enjoy! Listen here on iTunes and Spotify+

Coffee Break? Read This

* Harnessing the power of age diversity

* What you should follow instead of your passion

* Companies with female leaders outperform those dominated by men, data shows

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #105 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

Join us for our online event. We hope to see you Tuesday, 8 March at 630pm (GMT).

From The Purse

In this week’s newsletter, we focus on Serena Ventures raising $111m for its inaugural fund. Led by founding general partners, Serena Williams, the tennis champion and investor and Alison Rapaport Stillman, the team is mostly women who come from diverse backgrounds and lived experience.

76% of their investments are in solo female founders and/or Black founders in an ecosystem which chronically underestimates and underfunds women and founders of colour.

***

You can review the news in brief so you stay on top of global financial, economic and investing trends.

And don’t forget to listen to The Purse Podcast interview with Ella Chase Hyland. She is the co-founder of Wellth Works, which cultivates and develops authentic feminine leaders, showing women that they create success while integrating balance and fun. We talk about female inheritors and their relationship to money.

***

And we hope you can join us for our first live online event on Tuesday, 8th March at 630pm (UK) on International Women’s Day.

Dr Kate Levinson and I will be talking about how women can change their relationship with money.

Please register for the event here.

Until next week,

Jana

Serena Ventures raises $111m for inaugural fund

Investing in underestimated and underfunded founders is integral to Fund I’s strategy

Serena Williams is considered one of the greatest tennis players of all time. But her talents extend beyond sports to the world of business, entrepreneurship and investing.

Serena launched her early-stage venture capital (VC) firm, Serena Ventures, in 2014 with the mission to champion diverse, creative founders who are changing the world with their ideas and products across a wide array of industries.

This week, Serena Ventures confirmed they have raised their inaugural fund of $111m to continue their mission, as per their blog.

Today, Serena’s VC firm has:

* 9 years of angel investing under their belt

* invested in 60+ portfolio companies

* their successes include 13 unicorns and 6 exits

* and their investments include fintech disruptors Propel and Cointracker, edtech giants Masterclass, and consumer product innovators Billie and Daily Harvest.

76% of their investments are in solo female founders and/or black founders…

…in an ecosystem which chronically underestimates and underfunds women and Black founders. Women receive 2% in venture capital funding versus 1.2% for Black founders (US).

And their Fund I strategy is based on the following premise, as per their blog:

* We bet on founders who are not only obsessed with what they’re building, but whose passion is informed by their lived experience

* We invest in overlooked, underestimated, and fledgling markets - we are a non traditional investment team and our perspectives give us an edge

* Our network is unmatched and we are uniquely positioned to add value in ways other firms simply cannot

* We have skin in the game for our founders, and we’ll answer every call and make every effort to help them succeed

Their conviction in overlooked markets extends beyond demographics to legacy industries.

Serena Ventures team is made up of…

…mostly women who come from diverse backgrounds and lived experience, (are) used to looking at problems differently than most in their industry.

The data shows that women invest in female founders at 2-3x the rate of men. And if they share a similar background or lived experience to the founder, gender and racial bias is often reduced, if not altogether eliminated.

They are led by their founding general partners, Serena Williams and Alison Rapaport Stillman, who’ve built an impressive team of operators, marketers, and investors.

As per their blog, Serena Williams knows what it takes to win, and personally understands the founder journey in a way that few people in the world can.

Alison Rapaport Stillman has over a decade of experience, having previously worked at J.P .Morgan, Wasserman, and Melo7 Tech Ventures. She’s a seasoned venture capitalist with deep expertise in and passion for healthcare, consumer, e-commerce, and fintech investing.

The social impact of investing in female founders and Black founders..

… is vast because the markets they address have been ignored or marginalised by investors for so long. And these underinvested markets are also underserving their customers.

It follows that the startup valuations for female founders and Black founders are often below market value. Therefore traditional investors can buy in at a huge discount.

This is despite female founders having a higher return on investment than their male peers. Why? They often have to bootstap their startup for longer and become better money managers in the process.

Simply put: they do more with less. And generate a higher return on investment.

News in Brief

Financial news

* The US Federal Reserve is prepared to push ahead with a series of interest rate hikes from March, despite the economic uncertainty surrounding Russia invading Ukraine.

* The Euro drops <$1.10 for the first time since 2020 as global investors flee Europe.

* Stoxx Europe 600 fell to 52 week low, a sharp contrast with US peers, which have a more limited exposure to Russia and Ukraine. This is a major shift from expectations at beginning of the year when strategists said that European stocks would outperform the US in 2022, according to Bloomberg.

* Oil rose to its highest level on Thursday since 2008 ($118 per barrel) as Russia invasion upends the market. A decision by OPEC+ to continue its plan to gradually increase output on Wednesday also did little to calm investor's nerves.

* Wheat spikes to fresh 14 year high on deepening supply fears. Russia and Ukraine are major suppliers.

* Gold climbed (to $1944) after reports show that Russian troops are shelling Europe’s largest nuclear power station in Ukraine. Risk aversion back on after report of fire at this nuclear plant.

* Eurozone inflation hits yet another all-time high. Inflation unexpectedly accelerates to 5.8% year-on-year in February.

* According to Bank of America: the Ukraine war means a bigger inflation shock, smaller rates shock and a bigger recession shock. The US Federal Reserve and the European Central Bank (ECB) trapped between deflation on Wall Street and inflation on Main Street.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Crypto is set to get a big boost from the rubles’s collapse and the growing market share in stablecoins, according to JP Morgan. A potential further surge in bitcoin lines up with improving technicals. (See the current bitcoin price).

* 2022 global inflationary pressure drives up demand for bitcoin in countries like Brazil, Argentina and Russia. Bitcoin has gained over 13% in the last one month and inflationary pressures seem to have spiked this demand.

* Bitcoin hodlers unfazed by macro and geopolitical risks as they continue to accumulate, according to blockchain data from Glassnode.

* Ukraine DAO’s flag NFT sells for $6.75m. The auction of the non-fungible token depicting the Ukraine flag raised 2,258 ETH.

* NFT market cools as trading on ethereum and solana dips. Overall NFT trading volume fell after January’s record-breaking month, but some networks are seeing gains amid the wider slump.

The Purse Podcast

We cover the following in our conversation:

* the definition of wealth

* female inheritors and their relationship with money

* key dynamics and challenges in families

* ownership vs control

* investing in female founders

* being agents of change

Please enjoy! Listen here on iTunes and Spotify+

Coffee Break? Read This

* Recruiting women takes more than just competitive pay

* Research: how bias against women persists in female-dominated workplaces

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #104 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

Join us for the first live online event. We’d love to see you there!

Click here to register for the event.

From The Purse

In this week’s newsletter, we consider Russia’s invasion of Ukraine, the impact on the global economy and what this means for your money.

Russia’s invasion of Ukraine signifies substantial risks for a global economy which is still reeling from the pandemic shock.

You can review the news in brief so you stay on top of global financial, economic and investing trends.

***

And we hope you can join us for our first live online event on Tuesday, 8th March at 630pm (UK) on International Women’s Day.

Dr Kate Levinson and I will be talking about how women can change their relationship with money.

Please register for the event here. Early bird tickets are available.

Until next week,

Jana

Russia’s invasion of Ukraine: how will this affect the global economy? And what does this mean for for your money?

The global economy is at risk and what does this mean for your money?

Russia’s invasion of Ukraine signifies substantial risks for a global economy which is still reeling from the pandemic shock.

The conflict looks to be the most serious since WWII (1945) in Europe. The Ukrainian capital Kyiv may fall at any time (although, at the time of writing, the Ukrainians have resisted the Russian military offense).

On Thursday, natural oil prices soared by 70% in Europe and crude oil exceeded $105 a barrel for the first time since 2014.

Western governments are taking steps to punish Russia by introducing sanctions including cutting off multiple banks from the SWIFT payment system.

Leading global financial markets plunged on Thursday (including the crypto market), however the outcome could have been more extreme. As the sanctions were introduced by Western governments, the markets rebounded.

However, we simply have no way of knowing how bad things can get. How long will the war go on for? How severe will the sanctions get? Will the war extend beyond the borders of Ukraine?

Therefore global markets could fall even further after they rebound.

What does this mean for the global economy?

The increased geopolitical tensions are set to exacerbate high inflation, supply chain bottlenecks and volatility in financial markets.

If energy prices continued to soar this could easily tip the global economy into recession. And aftershocks from the invasion could make the situation even worse.

All of this will affect corporate and household wealth, global sentiment and household consumption.

This threatens household growth…

…as households spend an increasing amount of their incomes on fuel and heating with less to spend on goods and services.

This is likely to weaken global economic growth, beyond what had previously been forecast.

Central banks, like the US Federal Reserve and the Bank of England, will have to rethink how they approach the interest rate hikes planned and longer term.

The question then remains: how high will inflation go? If the central banks have to remain cautious in tightening monetary policy, will they be able to control (or contain) inflation?

In the UK, fear of the ‘cost-of-living’ crisis looms…

… when the cap on energy prices rises and national contributions increase (to 1.25%) in April of this year.

Real pay levels are already stagnating as inflation outpaces the growth in wages.

By the end of 2024, real wages would still be £740 a year lower than if Britain’s ‘already sluggish’ pre-pandemic pay growth continued.

What does this mean for investors?

Volatility in the global financial markets is expected.

The market is already down from its highs: investors have been selling ‘risk-off’ assets such as tech stocks (and crypto too) and directing capital to value stocks, away from overpriced markets.

According to Du Jun, the chief executive of one of the world's largest cryptocurrency trading platforms, Huobi, the recent downturn could be the beginning of a chilling new crypto winter. A bear market that could see the price of bitcoin and ethereum fall 90% from their all-time highs.

A market downturn is often the ideal time to invest.

Many tech stocks (for example) have dropped 20%, some as much as 50%+. The crypto market is also down approximately 50% from its all-time high in November. And prices may drop further depending on the developments in Ukraine.

Conventional thinking is that when the market drops 20%, it is a good time to start buying (more). And to apply ‘dollar-cost averaging’ which is where you invest a set amount on a monthly basis.

The price of equities or crypto (such as bitcoin or ether) may drop even further, which simply means you can buy more of the stock or crypto at a bigger discount.

When the price goes up, you buy less. However, over time, this will give you an average price for the equity or crypto.

As Warren Buffet says, it is not timing the market, but time in the market that counts.

The key is to avoid selling your existing investments when the market drops-if you can at all help it. You only realise a loss when you sell at a loss. The losses investors make when they ‘panic sell’ can be difficult to recover from.

Disclaimer: everyone’s financial situation is different. You may wish to consult with a financial adviser or financial expert who can review your financial situation.

News in Brief

Financial news

* Russia invaded Ukraine (Thursday) and starts war in Europe. In response, the West has imposed a series of sanctions including cutting off multiple Russian banks from the SWIFT payment system.

* European natural gas prices soared by almost 70% and crude oil exceeded $105 a barrel for the first time since 2014 after Russia’s invasion of Ukraine triggered fresh worries about global energy supplies.

* Markets plunge: FTSE 100 fell 3.6% as Russia invaded Ukraine. Mounting losses for UK stocks brought them closer in line with Europe, where the pan-continental Stoxx Europe 600 slipped 3.4%. The S&P 500 fell 1.4% while the tech-heavy Nasdaq Composite slipped 1.1%.

* The Fed’s favourite inflation gauge is up 5.2% which is the biggest annual gain since 1983.

* Bank of England (BoE) deputy governor Dave Ramsden said that there will be further interest rate rises in the months to come as the central bank responds to rising inflation. But is it difficult to predict the longer-term path because of heightened uncertainty, including the Russia-Ukraine conflict.

* UK house (asking) prices surge in February as demand grows. The average cost of a house rises 2.3% to £348,800. This marked the largest monthly increase since the company started tracking national prices in 2001.

* UBS sees short-lived strength for gold, expects prices to drop to $1,600 by year-end.

* Number of women in FTSE 100 boardroom roles up to 39% (from 12.5%) in a decade even as equality charities said progress for women in senior leadership roles was severely lagging.

Crypto: bitcoin, ethereum, DeFi & NFTs

* ‘Big risk-off’ move sweeps the crypto market. Following Russia’s invasion of Ukraine (Thursday), Bitcoin was trading down 7.9% (over the last 24 hours), while ether was trading down more than 10% over the same period. Long-tail assets saw an even steeper sell-off, with Avalanche, Shiba Inu and Cardano falling by double-digit percentage points. The prices later rebound-see the bitcoin & ether price. The crypto market remains down by almost 50%.

* European Parliament delays vote on crypto assets bill over proof-of-work debate because of public outrage. The MiCA Directive is ‘not to be misinterpreted as a de facto Bitcoin ban’.

* Du Jun, the chief executive of one of the world's largest cryptocurrency trading platforms, Huobi- the recent downturn could be the beginning of a chilling new crypto winter. A bear market that could see the price of bitcoin and ethereum fall 90% from their all-time highs.

* $500K of bitcoin (14.5 btc) has been donated to one of Ukraine’s largest organisations supporting the military after Russia invades.

* BNY Mellon scales up crypto ambitions -by tracking customers’ bitcoin. The world’s largest custodian bank is integrating Chainalysis to help with risk management.

* Marvel producer Arad to turn Huxley Ethereum NFT comics into film. Ben Mauro’s post-apocalyptic digital comic tale will become a feature film, alongside interactive metaverse experiences.

* Sotheby’s withdrew a lot of 104 CryptoPunks before its auction was set to begin. The value of the lot had been estimated to be between $20m and $30m.

* DAO treasuries drop $3.1bn over last month. Assets under management controlled by DAOs have dropped by over $1bn in the last week amid a wider crypto market slump.

Coffee Break? Read This

* 7 lessons about finding the work you were meant to do

* When your boss labels you a poor performer- but you’re not

* DEI initiatives are futile without accountability.

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