![]() Again, we’re carrying forward that discipline. So, only about a sixth of the fund was written off. In Ed’s former fund, two-thirds of the companies in the portfolio contributed to the return of the third that didn’t, about half returned capital. He did this by generating what we call a majority wins profile, which is really the inverse of the prevailing venture model of one or two portfolio companies returning the fund and the rest essentially being written off. We also know from that prior experience that this is a high-return investment strategy, as Ed’s most recent prior fund delivered a 32% internal rate of return, which was top tier performance for its vintage. So we’re carrying that discipline forward from my senior partner Ed Dugger’s prior investment practices. It’s important enough to us to put that in the investment documents, because we know from experience that over time it’s possible to lose sight of that connection and therefore to wander off course. We differentiate those strategic impact objectives from broader impact initiatives, which we also applaud and encourage: we define strategic impact as that which is integral to the business model, such that pursuing the impact advances the business, and building the business expands the impact. ![]() We also have binding terms in our investment documents that commit us and our portfolio companies to their strategic impact objectives. And we do that by design, because our focus is on creating wealth and opportunity with and alongside and for those founder teams and their employees and their wider stakeholders.Īs part of our investment terms, we have binding commitments that the companies we invest in will continue to hire, promote, and compensate equitably as they grow and furthermore will source equitably to the extent that’s feasible, because we recognize that it’s not always in every instance. Then we work with them to grow more profitably. We invest exclusively in U.S.-based companies led and controlled by BIPOC and/or female founders, and we invest in those companies when they’re at or on the cusp of breakeven. Julianne Zimmerman: Reinventure Capital is a closed-end venture fund-structure investing practice based in Boston.
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