Solution

SustainVC aims to improve outcomes for all Americans and ensure a more sustainable planet for future generations by backing entrepreneurs who are addressing critical social and environmental challenges and align with our two impact themes: ‘Climate & Sustainability’ and ‘Access & Opportunity.’ We invest only in companies where the product and/or service has a strong, positive social and/or environmental impact. By integrating impact into the business model, we ensure that as the business scales and grows revenue, the impact scales accordingly.

Product / service

SustainVC evaluates both the social/environmental and financial impact of prospective portfolio companies. After investment, our team works with these companies to refine measures and enhance their social, environmental, and financial performance. Building on the objectives and experience of our previous funds, SustainVC Impact Fund III’s portfolio is expected to include equity investments in early-stage through growth-stage companies that generate positive social and/or environmental impact and market-rate financial returns.

Projected impact

The SustainVC impact has been tracked at the individual portfolio company level and aggregated across the portfolio, showing substantial achievements from our first and second funds:

• 44 million total lives touched (categories are not mutually exclusive):
  • 11 million healthcare patients and workers benefited
  • 8 million students and teachers reached
  • 32 million technology platform users benefited
• 900,000 tons of CO2 reduced annually
• 190,000 MW of clean energy supported
• 2,000 jobs supported
• 74% of portfolio companies with diverse leadership teams, and 53% with a Founder/CEO who is female and/or a BIPOC individual

Our team aims to achieve, at a minimum, the following impact metrics across the third SustainVC Impact Fund:

• 10,000,000+ lives benefited
• 100,000+ tons of carbon dioxide reduced annually
• 1,000+ jobs supported
• 50%+ of portfolio companies with a Founder/CEO who is female and/or a BIPOC individual

Theory of change

SustainVC manages venture capital funds that support innovative entrepreneurs sharing our vision for a more sustainable and equitable world. We believe in the potential of mission-driven entrepreneurs with lived experience in the problems they are addressing and the communities they serve. Their unique perspectives enable them to build better solutions that empathetically tackle complex challenges. By investing in underrepresented founders and supporting their growth through exit, we help to build wealth and reduce disparities.

Traction

Across two prior funds, SustainVC has invested in 46 high-impact companies. More details are available in the PPM.

Business model

Our limited partners commit capital to our funds, and we target a market-rate return. Further information can be found in the PPM.

Market & competition

SustainVC invests in early-stage, high-impact, and scalable companies across the United States. The Fund’s portfolio investments will generally adhere to the following criteria:

• Stage: Companies with $500,000 to $5 million in annual revenue.
• Round Size: $2 - $10 million for Series Seed to Series A rounds.
• Profile: Software and tech-enabled service businesses with strong gross margins, capital-efficient models, and recurring revenue streams.
• Geography: US-based companies.
• Industries: Sector-agnostic but focused on Climate & Sustainability and Access & Opportunity.

Vision & strategy

Our funds aim to create measurable impact while achieving positive financial returns through investing in companies with the following characteristics:

• Capital Efficient: We focus on scalable, tech-enabled businesses with limited technology/regulatory risk, reasonably priced valuations, manageable future financing needs, and a shorter path to commercialization and exit.
• Overlooked: We leverage our network of deal flow partners to discover exceptional businesses in second and third-tier cities, tapping into overlooked opportunities for impact and financial returns.
• Diversified: Our portfolio is diversified by the number of companies (15-25 expected), geography, and industries to avoid concentration risk.
• Long-term Value: We back mission-aligned businesses with high founder retention, superior talent acquisition, early customer conversion, and the ability to raise non-dilutive capital.