Motherhood's Economic Power: Mother Ventures Launches $10 Million Fund for Modern Moms
Allison Stern, founder of Mother Ventures, has launched a new fund focusing on the economic might of modern mothers. Dive into how moms wield over $2.4 trillion in spending power and learn about her latest investments.
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As families across the U.S. prepare to celebrate Mother’s Day this Sunday, one entrepreneur is looking beyond the single day of appreciation. Allison Stern, co-founder of Tubular Labs and former operating partner at The Chernin Group (TCG), has launched a new fund called Mother Ventures. This early-stage venture capital firm focuses exclusively on startups catering to the modern mom.
Unleashing the Spending Power of Moms
In the U.S., moms are responsible for 85% of household purchases and hold $2.4 trillion in spending power, according to Stern. ‘The numbers say that moms are the buyers, and they really are a very unique economic engine,’ she noted during an interview with TechCrunch.
With this in mind, Stern is backing startups that reflect the needs of modern mothers. Since launching Mother Ventures two years ago, she has already deployed $4 million into 13 startups. Her portfolio includes companies like Coral Care, which allows instant booking of pediatric specialists for children with developmental delays, and Tin Can, a popular Wi-Fi-enabled ‘landline’ designed as a retro-style phone for kids.
A Unique Niche in the Market
For Stern, motherhood represents an ultimate niche that’s not really a niche. Before launching her own fund, she co-founded Tubular Labs and helped grow it to $25 million in annual recurring revenue before its 2023 acquisition by private equity. At TCG, part of their investment thesis included backing companies serving ‘overlooked unique audiences with spending power,’ such as Barstool Sports.
‘I felt like motherhood is the ultimate niche that’s not really a niche,’ Stern said, emphasizing her fund's potential to deliver superior returns. She has convinced Tony James, former president and COO of Blackstone and current board chair of Costco, to back Mother Ventures as an anchor LP. Other notable backers include Jessica Rolph, founder of the child development startup Lovevery, and female executives from Netflix, Rent the Runway, and Sesame Street.
Investing in the Modern Mom
Moments like these reflect how millennial and Gen Z mothers expect a different set of products—from on-demand transportation services such as Zum to ready-meal delivery from DoorDash, and fintech tools like Greenlight that allow parents to instantly fund a child’s debit card. ‘We want healthy things. We want subscription things. We want digital communities,’ Stern stated.
However, Stern doesn’t want Mother Ventures to be perceived as only investing in parenting tech. ‘It's a consumer fund, and focusing on the mom as the consumer allows us to be wider in our bets,’ she added.