Founding a new VC firm isn't easy, and one headed by two women is exceptionally rare in the UK. Jessica Rasmussen co-founded Two Magnolia to invest in underrepresented founders and the regions so can tell us all about the challenges of founding and building a female-led firm.
Amongst other topics, we talk about:
- how Jessica got into angel investing
- why she started a VC firm
- the gaps she found in the market
- the challenges of there being no playbook for starting a fund
- raising money to invest in underrepresented founders
- the investment case
- developing the right investment pipeline
- how VCs just need to do the right thing!
- comparing first and second time fundraising
Jessica's journey has been really interesting and she gives great insight into what she has learnt along the way. Enjoy!
00:50 What is Two Magnolias
03:10 how Jessica got into angel investing
06:50 why start a venture capital firm
09:00 how she identified a gap in the market
10:15 why choose running GP/LP over EIS fund or VCT
13:10 the lack of a playbook for starting a VC fund
18:00 is UK venture capital protectionist?
21:20 the challenges of raising money to invest in underrepresented founders and regions
26:40 investment case for underrepresented founders
29:00 how do you find companies with underrepresented founders
30:45 support for companies in the regions - role of government and local networks
33:40 has support for underrepresented founders stalled recently?
37:00 changing the numbers - just do the right thing
38:40 comparing fundraising for a first & second fund
40:00 favourite questions
Links
Two Magnolias website: https://www.twomagnolias.co.uk/
Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listen
Suggested books and media
Trillion Dollar Coach by Eric Schmidt, Jonathan Rosenberg & Alan Eagle
Bio
Jessica Rasmussen, Co-Founder & CEO, Two Magnolias
Jessica Rasmussen is Co-Founder and Chief Executive Officer of Two Magnolias, an early-stage UK venture capital firm established to address structural opportunity gaps within the UK venture ecosystem.
Prior to founding Two Magnolias, Jessica spent three decades in investment banking as a Global Markets specialist in Fixed Income. She held senior leadership roles across international markets, including ten years at Bank of America where she led Macro Sales within the Fixed Income Division, covering both Foreign Exchange and Rates. Her career was defined by managing complex market risk, advising institutional clients, and building high-performing teams in highly regulated, global environments.
Since co-founding Two Magnolias in 2019 with Marie Korde, Jessica has led the firm from its origins as an angel investment platform to its successful launch as an institutional early-stage venture capital fund. Under her leadership, Two Magnolias completed the final close of Fund I in early 2024, establishing a differentiated investment strategy rooted in conviction, discipline, and long-term public value.
Two Magnolias was purpose-built to support underrepresented founders developing solutions in sustainability and human health, exclusively within the UK. Jessica has played a central role in shaping the firm’s investment philosophy, governance, and market positioning, ensuring that female and ethnically diverse founders are afforded equal access to capital, credibility, and decision-making power.
A recognised advocate for diversity and inclusion across the UK venture and private equity landscape, Jessica is committed to demonstrating that inclusive capital allocation is not only a social imperative, but a driver of stronger innovation, better risk-adjusted returns, and more resilient economic outcomes.
Disclaimer
Please note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments. Your capital is at risk. Past performance is not a reliable indicator of future performance. Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation.
