IMPACT INVESTING ALONE WON’T SAVE DEMOCRACY. WHAT ELSE IS NEEDED?

WITH NORTH AMERICAN VC FINTECH FUNDING AT $17B, ARE WE CLOSING THE FINANCIAL INCLUSION GAP?

WILL IMPACT EVER BE MEASURED PROPERLY?

Impact measurement makes us better investors, but it isn’t always easy. Over the past decade, we’ve explored different approaches to measure our work. We’ve tracked high-level impact outcomes, attempted to figure out additionality, discussed our learnings privately and publicly, and considered our value-add as LPs.

Fast forward to 2022, when our team decided to join a 12-month Impact Frontiers cohort program. Transparently, we entered the course as skeptics. We didn’t think another training would move the needle. However, we’re thrilled to share the course was incredibly valuable! We met a network of likeminded investors trying to figure out IMM and to our surprise even arrived at a simple impact framework that we’re piloting. Our Lauren Rosales Farello, Director of Operations, shares a few takeaways from her experience in the program:

• Do What Works for You. Processes we trust are important but so is knowing when to deviate from the academic toward the practical.

• Avoid Getting Stuck in the Data. Within our approach, we opted to move away from closely calculating impact achieved per dollar. As a multi-asset class investor, we don’t think it’s useful to spend time debating whether to allocate funds to a sustainable timber fund or to hard tech to decarbonize industrial processes—these are two different investments. Both are necessary.

• Be Flexible. Create measurement tools that work today but will also be useful as the industry evolves.

• Keep Things Simple. Make impact measurement uncomplicated and straightforward to reduce the burden of reporting on companies and managers.

• Use a Framework to Stay Focused. Having one can lead to more productive conversations about what matters to your team and Investment Committee.

Impact Frontiers “helps investors fit together the puzzle pieces of impact management and investment decision-making.” If you’re interested in customized insights for your portfolio, we suggest signing up for the Impact Frontiers program. You can also check out the free, self-paced introductory materials.

We understand we can’t make a difference alone. It’s one of the many reasons we’re thrilled that Megan, who recently completed her MBA from MIT Sloan School of Management, has returned to Blue Haven as our Director of Partnerships.

What is Megan up to since rejoining the team?

• Strengthening partnerships with General Partners in our portfolio, family offices, private and public thought leaders, and beyond.

• Incubating and launching new strategic projects, like a policy-enhanced impact investing portfolio of work. (More to come in future newsletters.)

• Helping shape a more integrated and connected strategy across our departments (portfolio operations, investments, and philanthropy) so we’re driving toward one shared mission.

• Sharing our team voice and perspectives through a variety of channels (including creating this newsletter), developing field building resources, and curating intimate events, like Jeffersonian dinners, that build a sense of community and action.

Prior to school, Megan played a pivotal role in launching Blue Haven’s catalytic investments portfolio and defining our philanthropic strategy to advance the ecosystem. We know she’ll do a great job as our internal and external strategist and connector!

• Ten lessons for 10 years: Inconvenient truths from an impact-first investor  

  Ceniarth’s Leadership share their honest insights in a refreshing way.

• Impact Due Diligence and Management for Asset Allocators: A Field Guide

  Check out Blue Mark’s latest impact management guide for asset allocators, created in collaboration with CASE at Duke University and made possible with support from The Tipping Point Fund.

• Foreign-Influenced Corporate Money in State Elections

  OpenSecrets found that foreign-influenced companies have poured millions of dollars in political contributions to lawmakers. Some states are now looking to crack down on political giving by foreign-influenced companies.

• The Fundamentals of Climate Investing for Families

  This paper distills a decade of learning from the CREO community to help families navigate the increasingly complex journey to invest in climate.

• Use of Federal Work-Study Funds for Voter Registration

  For the first time, the Department of Education has clarified that Federal Work-Study dollars can be used by "public entities" (Federal/State/local/Tribal public agencies) for nonpartisan civic engagement work, including “supporting broad-based get-out-the-vote activities, voter registration, providing voter assistance at a polling place or through a voter hotline, or serving as a poll worker.”

• M-KOPA: 2024 TIME100 Most Influential Companies

  Congratulations to M-KOPA, a longtime portfolio company, on being named to this year’s TIME100 Companies list! Fun fact: M-KOPA is one of only seven companies to appear on the 2023 and 2024 list.

Recent events the Blue Haven team attended:

• The ImPact 5th Annual Strategy Summit in Oxford, UK

• Mission Investors Exchange 2024 National Conference in Los Angeles

• CREO Syndicate Global Meeting in Lisbon, Portugal

• RIKA HR’s Annual Conference in Nairobi

• Sorenson Impact Summit in Park City, Utah

Reach out if you’ll also be at these upcoming events and you want to connect!

• Climate Week NYC

• SOCAP in San Francisco

• GIIN Impact Forum in Amsterdam, Netherlands

The team during a recent trip to the Library of Congress