Interview with Donna Williamson, Managing Director of Ceres Venture Fund, L.P.

 

BrownHEN interviewed Donna Williamson, Brown '74, Managing Director of Ceres Venture Fund, L.P., Evanston, IL.

1. Donna, how did an Applied Math concentrator at Brown become Managing Director of Ceres Venture Fund?

While still an undergraduate, I initially was interested in operations research; through my summer and part-time work experience I discovered that many technical people were getting their MBAs. I decided to apply to MIT’s graduate program in management and went there directly from Brown.

I subsequently worked in the health care industry, identifying and launching businesses for new products and new markets at both Baxter and Caremark. As these companies moved away from internally developing technology and businesses due to pressures on the bottom line, venture capital seemed like a way to continue to work on cutting edge business opportunities.

2. You held a senior position at Baxter and one of its spin-offs. Ceres invests in information technology and business services, as well as health care. Did you find learning about new industries difficult?

I concentrate on the health care industry. Even within the industry technology and markets are always changing. It's one of the things I like about venture capital. My partners focus on information technology and business services. We each provide a broader business perspective to one another’s areas.

3. Please discuss being an entrepreneur within a large company. How does leading a spin-off relate to being an entrepreneur?

It can be difficult to start a business within a large company environment. Most systems and decision processes are geared to established rather than new businesses. With any new opportunity, a tolerance for risk and ambiguity is required as well as the willingness to champion an initiative and be creative in working with others to make it happen. In a corporate spin-off, one must deal with the establishment of a complete infrastructure and cash requirements rather than relying on existing corporate infrastructure and cash flow.

4. Please give advice to entrepreneurs about how to write a convincing business plan.

A convincing business plan will source as much data as possible about the risks and opportunities for a business. Often entrepreneurs look primarily at the upside scenarios and deal in general terms rather than specific ones. This can be particularly true of technology-driven entrepreneurs. Bottom-up, detailed understanding of the market and the competitors’ strengths and weaknesses help build credibility. Often entrepreneurs claim there is little or no competition for a product, which is highly unlikely. Aggressive forecasts showing high market share or "only 2%" of an ill-defined billion-dollar market typically are not credible. Finally, an understanding of the human and financial resources required to meet key milestones and ability to access them is important.

5. You have managed to have "a life" as well as a very successful career. What advice do you have in this regard to aspiring entrepreneurs?

It's hard to balance as an entrepreneur, particularly when starting out. You really have to love what you do in any field to be successful. However, having children forced me to appreciate a bigger picture and set priorities on a broader basis. I found I was more successful by delegating more and limiting my time to those things I really cared about.

6. What advice do you have, especially for women entrepreneurs, about being a woman in a field dominated by men?

Actually women are starting up companies at twice the rate of men. It has been shown that women are more successful as entrepreneurs than in any other field including medicine, academia, law, and corporate life. I believe it is because they can set the rules more easily in an entrepreneurial environment. Getting the appropriate education and experience gives one the confidence to compete on any basis.

7. Ceres has defied the stereotype that one has to be on the west coast (or at least one of the coasts) to succeed in information technology. Did you do something special or is the stereotype false?

Historically, it has been more difficult to fund technology in the early stages in the Midwest. We are finding, however, that universities are more willing to collaborate and experienced entrepreneurs are more available such that successful ventures are getting established.

8. What are the top five qualities you would ascribe to a business leader / an entrepreneur?

• Vision
• Tenacity
• Adaptability
• Integrity
• High energy

9. Would you speak about fear as a motivation or hindrance toward accomplishment? How has that played a factor in your path, if any?

In order to take risks one has to look at a worst case scenario as well as a best case. Both will motivate you to accomplish your objectives.

10. As you know, the entrepreneur's path is filled with trials and errors, and also failures. What's a valuable insight for entrepreneurs to keep in mind when they're experiencing setbacks?

I have found that failure can lead to the best insights and rather than trying to sweep them under the rug, examining them for lessons learned is invaluable. One often does not learn nearly as much from successes.

11. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

Persistence is truly important. One does not come by success overnight but through persistent actions each day. Never give up!

12. Who are the three individuals who have influenced your development significantly?

My father who instilled in me a love for math and science, Dean Hazeltine who gave me confidence to pursue a non-traditional path, and finally an early mentor who encouraged me to set my sights as high as possible.

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