Why impact matters to VCs

Impact matters to venture managers for three reasons:

  1. Attracting and winning the best entrepreneurs - Big Society Capital's analysis of early stage venture programmes/funds suggests that between 25-40% of the UK's emerging venture pipeline is impact oriented. Atomico data suggests this is between 15-20% for Europe (a 33% increase over the last five years). These founders will want investors who can help them realise their full ambitions.

  2. The best businesses will increasingly be impact businesses - if we accept that impact can be a source of value for startups then startups leveraging impact will outperform over time.

  3. LPs are increasingly caring more about impact - See writeup of a recent roundtable BSC held with LPs interested in impact.

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