Gayle Jennings O’Byrne’s, CEO of Wocstar Capital and cofounder of the Wocstar Fund, is defying the traditional venture capital model by investing in companies led by underestimated founders, particularly women and people of color. Despite facing initial skepticism and funding challenges, Wocstar’s approach—combining financial backing with hands-on support and a commitment to diversity—has already yielded a significant return with the successful acquisition of portfolio company Audigent by Experian. This early success validates Wocstar’s investment thesis and highlights the untapped economic potential waiting to be unlocked by investing in diverse and often overlooked founders.

Investing in Underserved Founders

Wocstar Capital, founded by Jennings, is not your typical venture capital fund. Jennings’ background in technology, Wall Street, and angel investing—coupled with her personal experience as a cancer survivor—instilled in her a sense of urgency to positively impact the world. “I really came into this to be of service to founders,” says Jennings. This combination of experience and a deep-seated desire to give back makes her uniquely suited to the role of a venture capitalist focused on women of color.

Jennings began by conducting a ‘listening tour,’ engaging with founders of color and investors to understand the challenges and opportunities in the market. She discovered that many diverse founders were struggling to secure meaningful investments, while investors were eager to support high-potential, diverse companies but lacked the means to find them.

Based on these findings, Wocstar developed its investment thesis focused on three pillars:

1. Consumption: Recognizing women’s significant influence on purchasing decisions, Wocstar invests in companies that solve problems within the consumption ecosystem. This includes sectors like retail tech, media, and entertainment.
2. Resources: This pillar targets companies that provide the resources necessary for consumption, such as clean energy, agriculture, and supply chain solutions.
3. Transactions: The final pillar focuses on the financial and operational technologies that facilitate consumption, including FinTech solutions.

Early investors in Wocstar were primarily high-net-worth individuals and family offices, with institutional investors like JP Morgan joining later. Jennings carries a deep sense of responsibility to her LPs, viewing her role as more than just a fiduciary duty but a personal commitment to ensuring their investments are financially and socially impactful.

“What I’ve learned from managing money for decades is that often the best returns come when you conduct independent research and investment in sectors, companies, or individuals others overlook or underestimate,” explains Valerie Mosley, founder and chief visionary officer of BrightUp. “I’m so proud of the Wocstar team and the returns and success they are delivering to investors like myself.”

Investing In WOC: Overcoming Diverse Founders

Funding Obstacles

Securing funding proved a significant obstacle for Wocstar, particularly in the early stages. Despite public commitments to support diversity and inclusion, many investors remained hesitant to invest in a fund focused on underrepresented founders.

Jennings overcame this by building trust and demonstrating the viability of her investment thesis through strong performance, which has now resulted in a successful exit. “We want investors [limited partners in the fund] who are coming at this because of the economics of it,” says Jennings, “not because of the impact the social [impact] messaging diversity sends.”

Another challenge was the limited check size Wocstar could offer compared to larger funds. Jennings differentiated Wocstar from larger-size VC funds by providing extensive support to portfolio companies, including operational and technical assistance, introductions to potential customers and investors, and acting as a “big sister” to founders, offering guidance and advocacy to young companies.

Jennings prefers not to take a board seat in portfolio companies, believing it creates unnecessary formality and hinders open communication. She prioritizes creating a safe space for founders to be vulnerable and seek help without fear of judgment.

First Exit Shows The Impact of Investing In Diverse Founders

Jennings met Jon Gosier, co-founder of Audigent, through a mutual friend in Atlanta. Audigent analyzes how people appear on social media and provides that intel to marketers. Following Gosier’s company founding and initial fundraising rounds, cofounders Drew Stein, Brian Brater, and Shelton Mercer joined the team. Shortly thereafter, Gosier stepped down as CEO and left the company to pursue venture capital and film financing. Stein became the CEO.

Although a woman didn’t found Audigent, Wocstar invested in the company because of its strong female leadership and commitment to diversity. “We are female-forward,” says Jennings. “We want to invest in really good companies that understand having women in leadership is a competitive advantage.”

“Having investors like Wocstar is ideal because they understand our business objectives and are willing to get involved with more than just a check,” said Drew Stein, CEO and cofounder of Audigent.

Audigent was recently acquired by Experian, providing Wocstar with a significant exit and demonstrating the success of its investment strategy. This exit is particularly important for Wocstar as it validates the potential of investing in diverse and underrepresented founders to other VCs.

Audigent’s performance has been exceptional, with Experian recognizing its innovative data activation and identity platform as a key driver of growth in the advertising industry.

Audigent’s exit isn’t just financial rewarding to its founders and employees: It demonstrates that underinvestment in underestimated founders has resulted in significant lost economic potential. Wocstar’s success highlights the opportunity to unlock this potential and contribute to economic growth.

Wocstar’s ability to generate wealth for its investors, many of whom are first-time investors in this asset class, further underscores the importance of its mission. The success of Wocstar’s first fund suggests a promising future for the firm and its potential to inspire other investors to adopt a similar approach.

Wocstar Capital’s success with Audigent’s acquisition serves as a powerful testament to the profitability of investing underestimated founders, paving the way for a more inclusive and impactful venture capital landscape. By challenging traditional investment norms and prioritizing both financial returns and social responsibility, Wocstar is not only generating wealth but also fostering innovation and driving positive change in the world.