impact investing

WHY WE MEASURE IMPACT

Our ultimate mission is to drive more capital to impact by proving that impact leads to superior returns

Our ultimate mission is to drive more capital to positive impact initiatives by proving that impact leads to superior returns.

By having a positive impact on top of mind and in actual measurable goals integrated into your business model, you’ll generate both profit and change.

*Amount needed to fully finance the SDGs, according to the UN.

*Amount needed to fully finance the SDGs, according to the UN.

HOW WE ASSESS IMPACT AND SUSTAINABILITY

Deal screening
1

Evaluate the company’s impact vision

2

Check alignment with our impact definition

3

Check alignment with at least one impact category and UN SDGs

4

Check that the investment doesn't fall within one of the prohibited sectors in our Investment Policy

DUE DILIGENCE
1

Evaluate impact potential using our Impact Assessment Framework

2

Request and analyse relevant impact data including a Sustainability Questionnaire defining impact and ESG risks

3

Test impact hypothesis with industry experts and stakeholders

4

Run an Impact Workshop together with the company to  define impact and risks

Deal sTRUCTURING
1

Select impact KPIs and set targets, to be approved by our Advisory Committee

2

Commitment to impact and sustainability is included in the Shareholders Agreement

INVESTMENT MANAGEMENT
1

Track impact KPIs on a quarterly basis and ESG risks, policies etc on an annual basis

2

Compile impact data across the portfolio into annual impact report

3

Measure progress towards impact targets on an annual basis

4

Compliance with our Responsible Investment Policy is reviewed annually

Exit

We are entitled to up to 20% carried interest above a 1.25x preferred return subject to achieving at least 60% of the impact targets. That means our financial remuneration is linked to the company’s impact!

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HOW WE ASSESS IMPACT AND SUSTAINABILITY

Enable more entrepreneurs solving global challenges

Inspire more
Impact VCs

$7 TN*

more capital invested in impact as an asset class

*Amount needed to fully finance the SDGs, according to the UN

Deal screening
1

Evaluate the company’s impact vision

2

Check alignment with our impact definition

3

Check alignment with at least one impact category and UN SDGs

4

Check that the investment doesn't fall within one of the prohibited sectors in our Investment Policy

DUE DILIGENCE
1

Evaluate impact potential using our Impact Assessment Framework

2

Request and analyse relevant impact data including a Sustainability Questionnaire defining impact and ESG risks

3

Test impact hypothesis with industry experts and stakeholders

4

Run an Impact Workshop together with the company to  define impact and risks

Deal sTRUCTURING
1

Select impact KPIs and set targets, to be approved by our Advisory Committee

2

Commitment to impact and sustainability is included in the Shareholders Agreement

INVESTMENT MANAGEMENT
1

Track impact KPIs on a quarterly basis and ESG risks, policies etc on an annual basis

2

Compile impact data across the portfolio into annual impact report

3

Measure progress towards impact targets on an annual basis

4

Compliance with our Responsible Investment Policy is reviewed annually

Exit

We are entitled to up to 20% carried interest above a 1.25x preferred return subject to achieving at least 60% of the impact targets. That means our financial remuneration is linked to the company’s impact!

the FINANCIAL REMUNERATION OF THE TEAM is linked to impact targets

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SHARING IS CARING, DOWNLOAD AND USE OUR IMPACT ASSESSMENT TEMPLATES

How to measure impact is a hotly debated topic. When we started out, we talked to the key thought leaders and reviewed the existing best practices and frameworks. There is no one gold standard, especially when you are dealing with very early-stage start-ups that have limited resources and constantly evolving business models, so we’ve taken the best of what we could find and adopted it to the needs of early-stage start-ups.

Is our impact measurement method perfect? No. Are we at least directionally right? We think so.  We are constantly learning and evolving, but one thing we know for sure - you have to start somewhere. Feel free to use and share our templates. Do you think we can do it even better? We want to hear from you!

IMPACT AT THE CORE OF THE BUSINESS MODEL

We don’t think you need to sacrifice profit to make an impact. When impact is baked into your business model, if you achieve financial success, you’ve almost certainly created a lot of impact too. So we’re looking for companies that, if successful, will become unicorns.

How do you know if you run an impact company? Well, do the three statements below apply to you?

> We address one of the biggest challenges of our time
> For every unit we sell, there is a unit of impact
> If we remove the impact, we remove the business


If yes, congrats, then you are our kind of impact company!

THE FINANCIAL RENUMERATION OF THE TEAM IS LINKED TO IMPACT TARGETS

We believe that we should walk the talk if we demand our portfolio companies to have impact at the core of their business models. Therefore, our carried interest (financial returns) won't be accessible to us if we are not reaching the impact KPIs we have set up together with the portfolio companies, and approved by our Limited Partners.

Norrsken VC data
Infogram
SHARING IS CARING, use our impact assessment templates

How to measure impact is a hotly debated topic. When we started out, we talked to the key thought leaders and reviewed the existing best practices and frameworks. There is no one gold standard, especially when you are dealing with very early-stage start-ups that have limited resources and constantly evolving business models, so we’ve taken the best of what we could find and adopted it to the needs of early-stage start-ups.

Is our impact measurement method perfect? No. Are we at least directionally right? We think so.  We are constantly learning and evolving, but one thing we know for sure - you have to start somewhere. Feel free to use and share our templates.