Can Venture Capital Create Meaningful Impact?
Venture capital can be an agent of change in the world. When investing in diverse teams to address some of the biggest societal problems impacting us today, VC has the opportunity to make a significant impact.
Making this impact can also have a meaningful return on investment. Historically, diverse founding teams earn a 3.26x median return — 30% higher than homogenous teams. And the majority of environmental, social, and governance (ESG) focused funds outperformed the S&P 500 in early 2021. Key sectors that are emerging as promising social impact opportunities for investing include:
· Climate Change
· Mental Health and Addiction
· Social Causes and Diversity Initiatives
· ESG Fintechs
Each of these sectors are reflected in several Alumni Ventures (AV) fund portfolios, including our dedicated Impact Fund. Click below to access a piece that explores examples of AV portfolio companies that operate in the social impact space, along with more information on our Impact Fund.
Alumni Ventures (AV) provides smart, simple venture portfolios to accredited individuals. PitchBook listed AV as the third most active VC firm in the U.S. in 2021.
