Double bottom line funds and mission-related venture. It sounds like the kind of thing one gets into more for altruism than to maximize returns.But as we found in this month’s Venture Capital Journal cover story, such approaches are gaining ground among more high net worth investors, and, to a limited extent, foundations.
Here’s a link to the story.
This year, socially conscious venture funds are ramping up at an unprecedented scale. At least six new and follow-on funds billed as mission-driven investment vehicles are on track to raise more than $500 million this year. Truth be told, the jury is still out on whether such an approach is viable at a large scale.
The rise in social venture comes as investors are putting significantly more money into so-called socially responsible investment (SRI) vehicles. Today, roughly $2.71 trillion—or 11% of assets under professional management in the United States—are now involved in SRI. And today, private equity accounts for a minniscule portion of that investment.