Not Telling Investors About Pregnancy: My Experience

Navigating Fundraising While Expecting: A Founder's Perspective

During my time leading Dandelion Energy, a geothermal energy startup, I successfully completed two significant funding rounds while pregnant. Notably, I chose not to disclose either pregnancy to my investors throughout these fundraising efforts.

I felt entirely comfortable with this decision, and I advocate for other founders to have the autonomy to maintain their privacy regarding pregnancy if that is their preference.

Double Standards in Fundraising

A male founder who chooses to withhold personal health or family information during initial investor meetings would not face scrutiny. In fact, such discretion would be considered perfectly normal and even expected.

This disparity highlights a potential double standard that female founders may encounter.

Dandelion Energy's Early Stages

For background, Dandelion Energy originated from Alphabet’s X in April 2017. We secured our initial external funding that same summer.

Our primary objective at this stage was to establish a commercial pilot program. This involved selling and installing heat pumps to validate our product’s functionality and demonstrate market demand for accessible geothermal solutions.

Proving the business viability of our concept was paramount before pursuing a larger funding round.

The First Pregnancy

It was during this pivotal summer of 2017 that I discovered I was pregnant.

This personal development occurred concurrently with the critical early stages of building and securing funding for Dandelion Energy.

Navigating Pregnancy During Fundraising

The transition from summer to autumn brought with it the challenge of managing a pregnancy alongside the process of securing Dandelion’s second funding round. Fortunately, I had the agency to decide when, or if, to disclose my pregnancy, as it didn't become physically apparent until around the seven-month mark. Even then, strategic clothing choices allowed me to remain discreet.

Lacking a precedent from others who had faced similar circumstances, I needed to determine how to present myself as a pregnant founder to potential investors.

Initial Concerns About Disclosure

Initially, I felt a sense of unease about potentially concealing information by not revealing my pregnancy. However, I was hesitant to do so. As a first-time entrepreneur without a substantial history, and as a woman navigating a largely male-dominated investment landscape, I had concerns.

Early in a startup’s development, investors often evaluate the founder as much as the business itself. Creating a strong impression is vital, and I didn’t believe that being “pregnant” would enhance my ability to make the kind of impression needed to secure funding. I acknowledge this perception may evolve, but it accurately reflected my assessment at the time.

The Practicalities of Timing

Furthermore, I considered the logistical challenges of bringing up the topic. Most of these meetings were initial introductions, and time was limited to discuss crucial details like payback periods and vapor compression refrigeration cycles. At best, disclosure seemed neutral; a net positive outcome felt improbable.

Considering these factors, I opted not to discuss my pregnancy. This strategy proved effective. As I began to show, around the seven-month point, many investors entered their holiday break, postponing the need for a direct conversation.

The Inevitable Conversation

However, this approach had a drawback. Delaying the disclosure meant that when I eventually did tell them, the conversation was somewhat delayed and required a more direct approach.

Thankfully, their reactions were overwhelmingly positive and supportive. Their gracious acceptance even led me to question whether my initial anxieties about informing investors were justified. My daughter’s birth coincided remarkably with the arrival of the funding – literally the day after the wire transfer completed.

Key Takeaways

• Strategic Disclosure: Carefully consider the timing of disclosing personal information during fundraising.
• Investor Perception: Be aware of potential biases and how they might influence investment decisions.
• Prioritize Business Focus: Maintain a focus on the business and its potential during investor meetings.

Securing the Next Funding Round

As time progressed, it became evident that our company was positioned to pursue another round of investment. Simultaneously, I discovered I was expecting another child.

The majority of the fundraising process coincided with the initial phases of my pregnancy. This occurred before I had broadly shared the news, leading me to refrain from disclosing my condition to potential investors during initial meetings.

Having navigated a fundraising process during a previous pregnancy, the decision to manage this round similarly felt more straightforward.

Previous Experience Informed the Approach

The experience gained from the first fundraising round while pregnant proved invaluable. It allowed for a more considered and comfortable approach this time around.

The decision to not immediately disclose the pregnancy to investors was based on a desire to maintain focus on the business and avoid potential biases. Funding and personal life were carefully managed in parallel.

Reflections on Entrepreneurial Experience

Considering my journey, I believe building rapport with my investors throughout fundraising proved beneficial. By the time I shared news of my pregnancy, they already possessed a strong understanding of my character and my established entrepreneurial capabilities.

My pregnancy was simply a personal life event, not a defining characteristic in their eyes. This highlights a benefit of later disclosure: my identity was already well-defined through prior interactions.

Navigating Identity and Perception

In many respects, my profile aligns with the typical founder archetype. I hold a computer science degree from Stanford University, previously worked in product management at Google, and possess a strong engineering foundation.

However, during fundraising, my focus centered on aspects of my identity that deviated from the norm, with my gender being the most prominent consideration.

Given the documented disparity in investment funding received by women, I anticipated that being a woman might present a disadvantage. Pregnancy, undeniably, further emphasizes this aspect of identity.

Positive Experiences and Future Outlook

I am now fortunate to be connected with other founders who successfully secured funding while visibly pregnant, demonstrating its feasibility. However, a pregnant founder isn't required to reveal this information.

My hope is that women will routinely launch and fund businesses at all life stages, including during pregnancy.

The moment a pregnant woman and a male founder in casual attire are viewed with equal probability as potential startup leaders, the question of disclosing a pregnancy will become significantly less critical.