A collection of leading venture capitalists has united to found ImpactVC, which aims to drive venture capital’s ability to solve challenges including the cost-of-living crisis, mental health and climate change. The founding of ImpactVC is part of a growing momentum establishing impact investing at the heart of venture capital; investing in the most important companies of the next decade and addressing social and environmental concerns.
Europe accounts for over half of global investment into early-stage purpose-driven tech companies. The number of European impact unicorns is growing at pace; with a rise from 15 in 2019 to 42 in 2023, showing a sectoral desire to emphasise impact creation along with the potential to scale impressively.
Capitalising on this, ImpactVC members have £12 billion AUM including top-tier VCs Balderton, Connect and Northzone and impact specialists such as Eka Ventures and Bethnal Green Ventures. These firms have invested in cutting edge impact startups which target global problems directly such as:
- Wagestream, a financial wellbeing app supporting frontline workers with money management helping to combat the cost-of-living crisis
- Open Bionics, which creates assistive devices such as their Hero Arm to help those including children who need enhanced mobility and independence
- CarbonCure, which manufactures technology that introduces recycled CO₂ into fresh concrete to reduce its carbon footprint without compromising performance
ImpactVC is supported through sponsorship from BMW Foundation Herbert Quandt, NCM Fund Services, Taylor Vinters, Vauban, Katapult Foundation, Morgan Lewis, and Amazon Web Services. Sponsors have a range of interests in impact and venture, including continuing efforts to support social good, a track record of investment in funds and a desire to gain and share insights from other members of the community. With almost 200 sign ups even before the formal launch, the community will share practical tools and ideas to help VCs back and build high impact companies.
ImpactVC was incubated within Big Society Capital, the UK’s leading investor in impact venture funds, and is shaped by its members, focusing primarily on building the community and developing resources. The community has already been active with a kick-off event attended by over 60 attendees. Speakers at the event included the founder of an impact-focused unicorn, leading VCs such as Northzone and impact specialists including Eka Ventures and AENU with plans for further engagement.
The first major resource produced by ImpactVC is the VC Impact Playbook, which provides guides for making and managing impact investments, including assessing returns and risks, and information on measurement, evaluation and reporting. The playbook is the market-leading example of a framework for early-stage VCs to focus on impact and represents the beginning of community-created guidance which will offer support for new and established VCs alike.
As focus on impact grows from investors, founders, consumers and employees this community will be ever more valuable for providing world-leading guidance and collecting experience and resources in impact venture.
Take a look at their playbook here: ImpactVC Playbook