The Giant Leap Fund will “back entrepreneurs who use business to improve overall health and wellbeing, empower people and encourage sustainable living”, Impact Investment Group (IIG) said, and successfully raised $13 million through its first fund raise.
IIG said the fund will have a focus on “late seed and early series A stage investment opportunities” with companies whose profits are linked with their “social or environmental mission”.
“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,” said IIG chief investment officer Will Richardson.
“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.”
The Giant Leap Fund has made two investments so far, one in parcel delivery start-up Sendle, and more recently in Melbourne-based company YourGrocer.
As the fund has received $13 million in commitments, it may qualify for the Australian government’s tax break for early stage venture capital limited partners.
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