Australia's Impact Investment raises $10m VC fund

The fund, known as Giant Leap, will make late seed and early Series A investments in businesses where profit is intrinsically linked to a social or environmental mission. Focus areas will include health, wellbeing, education and sustainable living.

"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," Will Richardson, Impact's chief investment officer, said in a statement. "The tide is turning on business that comes at the expense of society or the planet."

Giant Leap will have a term of 10 years plus two one-year extension periods. It will make individual investments of A$500,000-$1 million, and is targeting a 20% internal rate of return per annum. At least 80% of investments will be made in Australian companies.

The fund has made two investments so far, including YourGrocer, a same-day food delivery service focused on small, local grocers, and Sendle, a parcel delivery company that offers a fully carbon-offset service. Companies invested by the vehicle are expected to able to generate 10x returns in 4-7 years.

Founded in 2013, Impact invests across property, renewable energy infrastructure and venture capital, and plans to expand into private equity and other asset classes. The firm prioritizes for-profit companies certified by non-profit organization B Lab, which confirms compliance with certain standards of social and environmental performance, accountability and transparency. It claims to have more than A$400 million in funds under management.

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