3.

Our impact strategy

To us, there is nothing stronger than a founder’s unshakeable intention to address a significant, pressing challenge on our planet and in our society and the persistence to work towards that goal until it is solved.

At Ananda Impact Ventures, as expressed in our ever-evolving Impact Manifesto, we invest for specific outcomes.

Levelling the playing field

Whether it is access to healthcare or education, increasing diversity and inclusion or opportunities for underserved or disadvantaged target groups, there are great solutions already out there that can put an end to most inequalities.

A Thriving World

We imagine a world where human beings, animals and nature can thrive and co-exist peacefully alongside each other. We see our primary job in removing the stumbling blocks while boosting creative solutions that can help all to flourish.

Protecting us from significant risks

Some of the biggest risks have the power to bring an end to humankind. The effects of climate change, pandemics and warfare of all kinds can be devastating. We are constantly working on some of the best solutions to eradicate these threats.

We tackle pressing societal issues in four areas of impact.

Redefining healthcare

Providing fast, accessible and improved personalised healthcare outcomes for all. Using novel technologies to advance treatment options and solve structural inefficiencies.

Educational empowerment

Levelling the playing field through accessible and affordable educational technology and quality education as well as shaping the future of work (e.g. supporting families through affordable child care and lifelong skills).

Sustainability transformation

Re-imagining whole industries to reach a clean, carbon-neutral and waste-free future within the Planetary Boundaries. Enabling the broadest possibilities and best quality of life for future generations.

Equitable humanity

Every life deserves the opportunity to be their best self from cradle to grave. Rethinking every aspect of our daily lives from fair finance to employment and the promotion of a more equal, inclusive and peaceful society.

Our impact criteria

We evaluate companies we partner by the following strict impact criteria.

Relevance

The solution has the potential to significantly improve a relevant problem in a way that would not have occurred otherwise. It works in a complementary or entirely disruptive way.

System-level effect

Considering the influence of the solution’s outcome on systems in the long run and its SDG-related implications.

Beneficiary

Can be defined as tightly as currently underserved or disadvantaged groups, or as broadly as future generations, flora or fauna.

Scalability

The impact is as scalable as the business model: the more revenue, the more impact is generated in lock-step.

Impact business model

Impact needs to be clearly measurable and inherently baked into the business model. The impact vision of founders and investors is fully aligned.

Risk

The analysis of negative externalities is a vital building block. Risk events are assessed, and mitigating strategies are put in place where necessary.

Examples of how Impact business models look in practice:

Revenue and a selected Impact KPI grow in lockstep. The data is normalised based on the year of investment.

CASPAR

CASPAR’s revenue is directly proportional to the number of aftercare patients and showcases the alignment of impact and profit. Both KPIs are normalised based on the data in the year of the investment to adjust the different scales.

Third Space Learning

Using only one Impact KPI for Third Space Learning masks the lock-step growth between impact and profit. In this case, more Impact KPIs influence the company's revenue (e.g. number of pupils benefitting from the solution).

Impact Assessment

We have proven and refined our Impact Assessment model over the last 12 years.

A thorough impact assessment is a vital part of every due diligence process. Centred around each company’s Theory of Change, we select a set of Key Performance Indicators (KPIs) with the founders.

Impact targets for the KPIs are set for the investment period – each KPI is measured, monitored and revised on a yearly basis together with the portfolio companies.

We aim to identify indicators that help founders navigate their impact rocket ships intentionally better and add value in communicating the purpose effectively.

Our Impact Advisors and our Advisory Board provide an independent outside view and expertise in our assessment.

Over the past decade, we have collected over 4,000 qualitative and quantitative impact data points.

Enabling the sustainability transformation in agriculture

Theory of Change

Klim combats climate change, enhances biodiversity and improves climate resilience by enabling and incentivising farmers to apply regenerative agriculture and thus building healthier soil.

Impact KPIs

Farmers implementing regenerative farming methods

Regeneratively farmed area per farmer that is tracked via Klim (in hectares)

No. of regenerative farming methods on the platform

Tonnes of CO2 being captured

UN Sustainable Development Goals

Our Impact Termsheet

Our assessment is complemented by our Impact Termsheet, setting a new standard on several impact levels.

1

We lock in the impact mission through the Impact Requirement Clause.

2

Our portfolio companies are encouraged to become category leaders in team diversity.

3

We go the extra mile by strengthening our founders’ mental health.

4

Our portfolio companies take responsible actions to commit to reducing their environmental footprint.

Sonia Allinson-Penny

Diversity & Inclusion means embracing differences genuinely.

You can have a diverse workforce, but if you are not genuinely embracing your diverse workforce, you are not being “inclusive”.

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