Impact, as a verb means “to have a strong effect on someone or something”.
At Venturebeam, our goal is to help the world’s most impact driven entrepreneurs and companies deliver their ambitions.
We are at a critical point in our history where the world’s most pressing problems will be solved collectively, with a set of common goals. By helping companies to evaluate their impact, and by providing measurable suggestions and feedback, we can play our part in bringing more companies within that collective effort.
This is why we have developed a comprehensive Impact Scoring process and scorecard applicable to all venture-backed companies, regardless of their stage, whether early or late, and their revenue or IPO status.
It is a free-to-use tool that companies can use to ‘score’ the impact they are making on people and planet. We provide constructive feedback on how to improve across certain areas and what might be holding the company back in achieving its impact goals.
How does our Venture Impact Score Work?
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Our impact tree has 2 large stakeholders – People and Planet.
To save the Planet, we set biodiversity and climate change as top goals.
For People, our objectives include human rights and diversity & inclusion.
Whether it is a direct impact-driven company, or a regular venture-backed company measuring their daily operations footprint, we believe every company should have impact goals.
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Our Venture Impact Scoring framework serves as a valuable tool for companies to align their impact objectives accurately and set their impact compass in the right way.
Moreover, it also enables investors to validate the impact of their investment portfolios effectively.
For those new to the realm of impact, it serves as an educational resource by highlighting areas where immediate impact can be achieved, such as implementing strategies for continuous digital waste reduction and management within the company for example.
Other examples might be the implementation of a diversity policy, or a framework for staff on the most environmentally friendly ways to travel when on business.
Is it all about ESG?
We have often been asked about whether we prioritize Environmental, Social, and Governance (ESG) as our 3 primary impact goals.
However, we firmly believe that governance should not be viewed as a standalone goal; rather, it serves as a fundamental pillar that must be established to benefit both People and Planet.
Similarly, while technology holds immense potential as an enabler of change, it is not the sole solution for creating change in impact.
That is why, in our assessment, we offer companies the opportunity to select one or multiple tools they employ to empower and implement their impact goals, these options include:
- Utilizing or Creating New Technology
- Introducing Disruptive Products
- Adopting Innovative Business Models (such as circular economy principles.)
- Reassessing the Value of Natural Assets (such as recognizing the inherent worth of trees beyond just timber)
- Exploring New Materials
- Influencing Consumer Behaviour (such as incentivising reduced consumption or investing in impactful initiatives)
- Enhancing a Specific Segment of the Value Chain
- Upholding High Governance Practices and Standards
We are proud to use the Venture Impact Score in our day-to-day evaluation of companies that wish to work with us on their funding rounds. It makes up a crucial part of the early diligence we perform on companies, and only those that score in the upper range are considered for investment.
The benefits of the Venture Impact Score
If you are fundraising, talking to suppliers, customers or potential clients, an impact score and plan to improve it could prove useful.
By setting new benchmarks and standards, we’re ensuring that companies don’t only thrive in business but also make a positive, measurable impact.
Regardless of whether a company is inherently impact-driven, a venture business with a robust impact mission, or simply holds an intention to create impact, our impact scoring system serves to support, fund, empower, and educate.
If you are a venture investor, you can ask your portfolio companies to monitor their impact score and see tangible feedback on how impactful your investments are.
Join us on this journey as we navigate the nascent stage of standardising reporting and measuring impact.
We firmly believe that by accurately measuring and directing our focus towards the appropriate goals, and by equipping companies with capital that aligns with their values, we can create a compelling and digitized investment process.
We have all the necessary elements in place to drive impactful change. We aim to cultivate a thriving ecosystem where impact-driven initiatives flourish, making a lasting and meaningful difference in the world.
Inspiration from Patagonia
Patagonia stands as an exemplary enterprise that seamlessly combines both regular business practices and a remarkable commitment to making a positive impact.
While operating within a sector that shares similarities with numerous other businesses, such as the processing of goods and clothing for outdoor activity, Patagonia distinguishes itself through its exceptional approach to governance, product development, and day-to-day operations.
By prioritizing the needs of their customers and striving to minimize their ecological footprint, Patagonia sets itself apart and embodies a truly unique ethos within the industry.
Are you interested in finding out your impact score?
We invite you to create an account and determine your own Venture Impact Score, review your Impact Score and Scorecard, and share your valuable insights with us. Together, let’s harness the power of impact and make a difference!
You can explore our guide of the scoring process for more details before you start.
