Australia’s first 100% impact venture capital fund.
- Higher returns expected from purpose driven businesses
- Run by experienced IIG investment professionals already managing $400m in assets
Melbourne-based Impact Investment Group’s (IIG) Giant Leap Fund has made its first two investments. They are expected to deliver strong financial returns coupled with significant social and environmental benefits.
Giant Leap is Australia’s first venture capital fund with a 100% impact mandate, and has already exceeded its $10m target for its first fund raise. The Fund is targeting a 20% internal rate of return per annum.
Giant Leap will back entrepreneurs who use business to improve overall health and wellbeing, empower people, and encourage sustainable living. It has a focus on late seed and early series A stage investment opportunities with robust business models and where profit is intrinsically linked to the company’s social or environmental mission.
Giant Leap’s second investment, announced today, is YourGrocer, who offer same-day delivery from local small businesses including butchers, green grocers, bakers and delicatessens. YourGrocer promotes competition and diversity in the food retail and supply chains, while providing customers with choice and convenience. Research also shows that money spent in local small businesses is circulated within the local community.
Giant Leap, part of the Impact Investment Group, is led by a high caliber team with strong business acumen and investment management experience. The Fund is strengthened by an experienced advisory team and three venture partners with extensive track-records as successful entrepreneurs and early-stage impact investors.
The venture partners are Peter Cameron, who was the CEO of AVG Anti Virus (AU/NZ) for more than 20 years, angel investor and marketing specialist Adam Milgrom, and Kylie Charlton, the co-founder of S.E. Asian impact fund Unitus Capital and Chief Investment Officer of Australian Impact Investments.
The highly experienced advisory team is made up of Susan Wu, listed in the Silicon Valley 100, Mark Joiner, previously the CFO of NAB, Bevan Clark, the founder of retailmenot.com, Danny Almagor, Chair of IIG and co-founder of Small Giants, and Alicia Darvall, Executive Director of B Lab Australia New Zealand, the not for profit behind certified B Corporations. The advisors have early-stage, tech, start-up experience and extensive venture capital investment and impact management expertise.
Victorian Minister for Small Business, Innovation and Trade Philip Dalidakis said, “Congratulations to IIG for their tremendous efforts to raise the Giant Leap Fund – not only will this money help our startup ecosystem but it will help those that are dedicated to making our world better for everyone.”
“This space will continue to boost our local economy and jobs in Melbourne’s inner-west, and further strengthen our position as Australia’s tech hub.”
IIG Chief Investment Officer, Will Richardson, commented, “We believe that the most successful businesses are the ones that make money by doing good, and they are the ones we are going after. The tide is turning on business that comes at the expense of society or the planet.
“Millennials are leading this charge for business to be a force for good. Deloitte research indicates that almost nine out of ten Millennials believe that a business’s financial performance is no longer the sole measure of success.
“The Giant Leap team has deep experience investing in sustainable businesses that blend profit and purpose to deliver maximum returns to investors. With Australia’s first impact venture capital fund, IIG is poised to extend its leadership in sustainable investment practices and remain at the forefront of impact investment.
“Research from Harvard Business School, Deutsche Bank and ACNeilsen show that companies with sustainable practices outperform competitors without those practices, and that people will pay for goods and services from companies that make a difference” said Mr Richardson.
Now that the Fund has received $13 million in commitments, it may qualify for the tax break program the Australian Government offers to early stage venture capital limited partners.
Giant Leap’s first investment was part of a record $5 million capital raising for Sendle, a disruptive and rapidly growing parcel delivery and postal service that is challenging Australia Post with a convenient, affordable, trackable and fully carbon offset pick-up and delivery service.
Who is IIG?
IIG is a leading impact investment funds manager and co-investor with more than $400 million in funds under management across property, renewable infrastructure and aligned values-driven businesses, including Car Next Door, Who Gives A Crap, and TOM Organic. IIG’s mission is to shift capital towards investments that blend financial returns with deep social and environmental impact. Since establishment in early 2013, IIG has successfully arranged and co-invested in fourteen investment syndicates, listed below.
IIG is owned by Chris Lock (Chief Executive Officer) and Small Giants, the family office of Daniel Almagor and Berry Liberman. IIG is an active and ethical manager that benchmarks its fees to the long term performance of its assets. IIG is a certified B Corporation and a member of the Responsible Investment Association Australasia.
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