Human Impact Capital is a new $50M fund investing in social impact startups • TechCrunch
red stone And the EnjoyVenture It combined forces to create Human Capital Influencer (HIC), Germany’s first science-impact venture capital fund. The fund will use cash in digital business models focused on health, education, and “living,” investing explicitly to have an impact on the Sustainable Development Goals. For HIC, this means “no to poverty, good health and well-being, quality education, gender equality, and reduced inequality.”
I spoke with the fund manager, Lucas Paulto find out the motive behind the establishment of the fund and its investment thesis.
“We are convinced that innovation is the key to overcoming the greatest social challenges of our time, and we are committed to contributing to a better future and supporting innovation through investments in social impact startups,” Paul said in an interview with TechCrunch. “Entrepreneurs who provide solutions to these social problems will advance our society and lay the foundation for future generations. While impact venture capital investments are on the rise, 75% of them are flowing into environmental issues.”
For the initial closing, the fund decided to partner with strategic investors with strong relationships with the social sector. Among other things, representatives of the fund, the bank für Sozialwirtschaft, Germany’s leading bank for the social sector, told me a great commitment to HIC.
The fund aims to invest in digital business models that address society’s biggest challenges, typically investing between €500,000 and €1.5 million. The company focuses on early stage startups in Europe, and holds more than 60% of its commitments to pursue investments.
“We firmly believe that economic profit and positive impact are mutually reinforcing and will accelerate at scale. We would like to prove this core belief and show that we can deliver above-average returns for our investors while maximizing the social impact of our investments,” Paul said. “Ideally, this concept has been proven and widely accepted 10 years from now, which would make the world a better place.”
One area where the company thinks it can make an impact, and where it actively seeks investment, is technologies that make aging smoother.
“One element that is a common feature of all Western societies is an aging population. Reaching this growing target group is critical today and will become even more important in the future. The challenge must be met now. We don’t currently see many models that have solved the problem of access,” Paul said. to this group and inclusion in an ever-changing jungle of digital solutions.” “Most digital startups simply ignore people over 50 years of age within their target group and miss out on massive revenue potential while the quality of life of seniors declines. We would like to see more ambitious founding teams working on solutions for seniors to ensure healthcare and protect seniors while reducing loneliness.”