Meet Venture Capital’s First Woman Billionaire

Terresa Gao: Venture Capital's First Woman Billionaire

Key Concepts: Venture Capital, Diversity, Equity, and Inclusion (DEI), Early-Stage Investment, Assets Under Management (AUM), Fund of Funds, Silicon Valley, Venture Capital Funding, Public Offering (IPO).

1. Introduction: Terresa Gao's Achievements and Background

• Terresa Gao is recognized as venture capital's first woman billionaire, with an estimated net worth of $1.2 billion.
• Heather Fernandez, co-founder and CEO of Solve and former executive at Trullia, describes Gao as "smart, opinionated, and the only woman in the room."
• Gao's journey includes being the first in her high school to attend Brown University, the first female partner at Excel, and co-founder of one of the first female VC firms in Silicon Valley.
• Born in Indonesia to parents of Chinese descent, she immigrated to the US at age three.
• Gao considers the "American dream" central to her personal story.

2. Source of Wealth: Excel and Facebook (Meta) Investment

• Much of Gao's wealth originates from her 15-year tenure at Excel, where she was part of the team that made an early and lucrative investment in Facebook (now Meta).
• Forbes estimates that Gao held around 8 million shares of Facebook at its 2012 IPO.
• The value of those shares at the IPO was estimated to be worth more than $5 billion today, had she not sold any.

3. Acrew Capital: Focus and Investment Strategy

• Gao co-founded Acrew Capital in 2019, an early-stage venture capital firm.
• In October, Acrew raised $700 million to invest in data and security, health, and fintech startups.
• Acrew's assets under management (AUM) total $1.7 billion.
• Acrew invests between $1 million and $20 million in startups, with smaller amounts for earlier-stage companies.

4. Diversity, Equity, and Inclusion (DEI) Initiatives

• Acrew emphasizes diversity, particularly through its Diversify Capital fund.
• The firm's founding investment team is 83% women or people of color.
• Acrew spearheaded an initiative to involve Historically Black Colleges and Universities (HBCUs) in the VC world.
• Gao co-founded First Close Partners, a DEI-focused fund of funds with approximately $35 million in assets.
• She also co-founded All Raise, a nonprofit that supports female founders and investors in Silicon Valley through networking and mentorship.
• The vast majority of Diversify Capital Fund investors come from "diverse backgrounds and communities," including women, people of color, and immigrants.

5. Challenges to DEI and Gao's Response

• Women comprised only 17% of VC decision-makers (partners, managing directors, and principals) in 2024, according to a PitchBook report.
• Firms with at least one female co-founder captured approximately 22% of VC funding in 2024, down from 25% in 2023.
• President Trump's executive order mandating the termination of federal DEI programs poses a challenge.
• Some major companies, including Google, Meta, and Goldman Sachs, have rolled back their DEI initiatives.
• Gao has been a strong advocate for DEI, doubling down on the practice through Acrew's initiatives.

6. Personal Details and Early Life

• In 1971, Gao's family moved from Indonesia to a town near Buffalo, New York.
• She learned math by watching Buffalo Bills football games with her father, who explained the statistics.
• In December, Gao bought a reported 2% stake in the Buffalo Bills, worth approximately $100 million.

7. Career at Excel

• In 1999, Gao joined Excel, a Silicon Valley-based venture firm, where she worked for 15 years.
• She rose to become a managing partner at Excel.

8. Potential for Even Greater Wealth

• Had Gao not sold any of her Facebook shares and diversified her stake over time, she would likely be worth even more.
• Her divorce in 2013 in California, where assets are typically split evenly, also impacted her net worth.

9. Conclusion

Terresa Gao's success as the first woman billionaire venture capitalist is a testament to her acumen, strategic investments, and commitment to diversity. Her journey from immigrant to VC leader highlights the potential of the American dream and the importance of DEI in the venture capital landscape. Despite challenges to DEI initiatives, Gao continues to champion diversity through Acrew Capital and other ventures.