Handbook for impact accountability in VC developed by coalition of impact-driven funds

● The handbook, developed by practitioners for practitioners, aims to provide commonality and coherence across the different approaches to impact accountability taken by venture capital funds.
● Representatives of five VC funds have met regularly over the past year to share approaches in implementing The European Investment Fund’s (EIF) approach based on the “Gamma Model” framework for linking impact to carried interest.
● The five funds, ETF Partners, SET Ventures, Sofinnova Partners, Astanor and FoodLabs have worked in close consultation with the European Investment Fund. Support for the handbook was provided by the European Commission, the European Investment Bank and the InvestEU Advisory Hub.
●The handbook is targeted at any VC firm that is intentional about impact. Including those who want to link carried interest to impact achievements.

BILBAO, SPAIN | November 26, 2024 – During the EIF Impact Equity Forum at this year’s Impact Week Summit, members of five European impact-driven VC funds unveiled a new handbook to bring commonality and coherence to the diverse approaches VC funds take toward impact accountability.

The handbook, titled: Impact Accountability in Venture Capital: A Ready-Reference for Practitioners provides practical guidance for VCs seeking to integrate impact into their carried interest models. The project was undertaken in close collaboration with The European Investment Fund (EIF) and supported by the European Commission, the European Investment Bank (EIB) and the EUInvest Advisory Hub.

Central to the handbook is the “Gamma Model”, a framework developed by IESE University of Navarra and the Family Office Circle Foundation and adopted by the EIF. The model helps fund managers articulate and validate their “Theory of Change” for each investment.

While the Model aims to provide a straightforward approach to evaluating impact, measuring it, and distinguishing the success of an investment’s “Theory of Change” from other factors, it suffers from being highly open to interpretation, especially when viewed across funds of different sizes.

The handbook aims to remove this ambiguity. It leverages the Model’s framework and offers practical examples from the funds themselves that clearly illustrate how it can be effectively applied.

The five funds involved in the handbook are the UK’s ETF Partners, Amsterdam-based SET Ventures, France’s Sofinnova Partners, Belgium’s Astanor and Germany’s FoodLabs. The group came together a year ago over a desire to share their observations and support others in linking impact to carried interest.

“The venture capital industry is at the forefront of driving innovation, but its approach to measuring and achieving impact remains nascent.” Says Patrick Sheehan of ETF Partners, who spearheaded the project. “This handbook consolidates the experiences of several VC firms committed to embedding impact accountability into their strategies in an effort to make it easier for other VCs to do the same.”

What’s inside:
The handbook is for VC firms, fund managers and impact-focused practitioners looking to adopt or enhance their strategies for impact accountability. It provides valuable insights and practical guidance for both Article 9 funds and mainstream investors seeking to incorporate impact-linked carry into their frameworks.

Its contents include:
● Context and methodologies: Introduction to impact-linked carry and using the “Gamma Model” from EIF as a conceptual framework for validating impact.

● Interpretations and applications: Shared experiences and approaches on selecting impact indicators, implementing impact-linked carried interest and governing these frameworks.

● Case studies and proposals: Real-world examples and actionable recommendations for the venture capital industry.

Looking ahead:
The funds involved view this handbook as a living document. As the impact-driven VC industry continues to evolve, this resource will be updated to reflect emerging best practices and approaches. The funds hope that the handbook’s unified and simple language will help to foster commonality among VC investors.

For more information or to download the handbook, visit the event page of EIF’s Impact Equity Forum.

END OF RELEASE
All parties involved are available for interviews and further comment. Please use the following contact information below to arrange this.

About ETF Partners
Founded in 2005, ETF Partners (The Environmental Technologies Fund) stands as Europe’s original venture capital firm dedicated to sustainability and impact investing. For nearly twenty years we have established a leading position in promoting sustainability through innovation.
ETF Partners is founded on the conviction that entrepreneurship and innovation are critical in addressing the global challenges presented by the climate crisis. We are committed to fostering and supporting Europe’s ecosystem of pioneering entrepreneurs who are creating the innovative solutions capable of making a profound environmental impact.

We believe in the transformative power of aligning profit with purpose in order to build a more sustainable future. For additional information about our investment thesis and approach, please visit our website at https://etfpartners.capital.

All Media Contacts:
Courtney Glymph
Head of Communications
07867488769
[email protected]

About Astanor
Founded in 2017 as one of the first impact investors in the agrifood tech innovation space, Astanor is a global impact investment firm committed to transforming the agrifood sector from a leading cause of social and environmental harm into a powerful regenerative solution. With €800 million in assets under management (AUM) and an Article 9 fund under SFDR, Astanor supports more than 45 portfolio companies across Europe and the USA.

By investing in planetary and human health—from soil and sea to gut—Astanor backs ambitious entrepreneurs with disruptive, scalable innovations to drive systemic change. Our mission is to repair the broken food system and foster a sustainable future for both people and the planet. For more information, visit www.astanor.com.

About FoodLabs
FoodLabs is a globally active early-stage VC investor and venture studio, empowering bold entrepreneurs to create iconic companies that prioritize planetary and human health. With a hands-on approach, the team collaborates closely with visionary founders and pioneering scientists, providing the resources, expertise, and networks needed to drive meaningful transformation. Founded in 2016 by Christophe F. Maire, FoodLabs has built and invested early-stage in over 80 groundbreaking companies worldwide. Its portfolio includes some of Europe’s most transformative and fastest-growing startups – such as Infinite Roots, Formo, Meatable, and Klim – showcasing FoodLabs’ role as a leader in sustainability-focused innovation. The team is dedicated to tackling today’s most pressing challenges across consumer industries, food supply chains and infrastructure, health, agriculture, livestock farming, climate, and synthetic biology.
For further information please visit FoodLabs online or contact:

Bastian Stöhr
CFO
[email protected]

About SET Ventures
Since 2007, Amsterdam-based SET Ventures has invested in digital technology for a carbon-free energy system by backing pioneering founders with capital, community, and insights. SET Ventures invests in companies with sustainable solutions and a strong digital DNA leading the systemic change of how energy is generated, distributed, stored, and consumed in sectors such as distributed infrastructure, energy retail, buildings, mobility, and industry as well as enabling technologies.
For further information please visit SET Ventures online or contact:

Simone de Bruin
Head of Insights
+31 6 2145 5491
[email protected]

About Sofinnova Partners
Sofinnova Partners is a leading European venture capital firm in life sciences, specializing in healthcare and sustainability. Based in Paris, London and Milan, the firm brings together a team of professionals from all over the world with strong scientific, medical, and business expertise. Sofinnova Partners is a hands-on company builder across the entire value chain of life sciences investments, from seed to later-stage. The firm actively partners with ambitious entrepreneurs as a lead or cornerstone investor to develop transformative innovations that have the potential to positively impact our collective future.

Founded in 1972, Sofinnova Partners is a deeply established venture capital firm in Europe, with 50 years of experience backing over 500 companies and creating market leaders around the globe. Today, Sofinnova Partners has over €2.8 billion under management. For more information, please visit: www.sofinnovapartners.com.