IMPACT FUND THESIS
Venture Capital Fund
A qualified opportunity zone business in Sacramento, California deploying $5MM pre-seed / seed capital in U.S. domiciled, high-impact companies with inclusive teams.
We are focused on companies that advance social, economic, and environmental equity, especially those that aid in Covid-19 coping and recovery (but that can also thrive in a Covid-19-free world).
Impact investing is experiencing explosive growth, with assets in the sector expected to grow to $500 billion by 2020, from $50 billion in 2009. Some predict assets ultimately will hit as high as $3 trillion (Impact Investing Vs. Philanthropy, Investopedia). According to Financial Times, "More than half of ethical investment funds have outperformed the wider global stock index in the [Covid-19] market downturn," (ESG Funds Continue to Outperform the Market, Financial Times
Why Inclusive Teams?
McKinsey research shows that companies led by inclusive founding teams out-perform operationally. Recent Kauffman Fellows research shows that multi-ethnic teams have higher realized returns. According to Financial Times, "More than half of ethical investment funds have outperformed the wider global stock index in the [Covid-19] market downturn," (ESG funds continue to outperform wider market, Financial Times).
Our managing and advisory team has access to diverse deal flow from prestigious accelerators and institutions, including Founder Institute, Berkeley Skydeck, Village Capital and California Energy Commission’s CalSEED.fund. These strong affiliations also aid in business model validation and due diligence. We also have consistent proprietary deal flow through introductions and online channels.
Our extensive mentor and advisor platform adds massive value to portfolio companies. We know, better than most, how to help them capitalize on diverse perspectives.
Additionally, our status as a qualified opportunity zone business offers tax-advantaged investment and returns on capital gains rolled over into opportunity funds.