Together We RISE: Rewarding Investments through Smart Education

Hello RISE Impact Enthusiasts,

We have some exciting updates and opportunities to share with you. Here's a recap of what's been happening:

Featured Webinar Recording: Best Practices in Reviewing Investment Summaries

Did you miss the recent webinar hosted by RISE member, One Street Capital on best practices in reviewing investment summaries? No worries—we're sharing the link to the recording so you can catch up.

This session is a great opportunity to boost your due diligence skills and make well-informed decisions in the multifamily real estate market. Denise and Catherine shared their insights on what they look for in their real estate investments, how to identify red flags, the key drivers of returns, and how to formulate additional questions for sponsors.

Featured Podcast

Heather Beatty, from the RISE community, was recently featured on the podcast Beyond Carbon, hosted by the Intentional Endowment Network (IEN). This episode dives into climate solutions in the public markets landscape, focusing on sustainable and responsible investments. You can listen to it here.

U.S. Green Finance Initiatives: The U.S. government is making significant strides in green finance. The Environmental Protection Agency’s $27 billion Greenhouse Gas Reduction Fund seeks to seed green projects, especially in low-income communities. This fund is expected to attract private capital and drive substantial environmental improvements​ (Atlanta Consulting Group)​​ (Impact Investor)​​ (ImpactAlpha)​.

As a reminder, RISE maintains a comprehensive database of private vetted, exclusive, impactful investments that includes everything from startups to established funds and real estate, spanning all areas of impact. These opportunities vary; some have specific participation qualifications, while others are more accessible. We do this because we all have different levels of savings, communities, and can participate in impact at different levels. Either way, as always, let's share this valuable knowledge of values aligned investing with our loved ones, including our children (it's never too early to start!), friends, and broader community. With that said, let's explore this week’s impactful opportunity.

TEACHING IMPACT INVESTING

Family Impact Investment Discussions

How to Evaluate Which VC Fund You Should Invest In

Last week, we discussed the distinction between Venture Capital (VC) and Angel Investing. Unlike Angel Investing, where you directly choose the companies to invest in, Venture Capital involves investing in a fund managed by experts who select the companies for you.

Thirteen years ago, my graduate work focused on profiling successful venture capitalists for the Journal of Private Equity. The article, titled "Changing the Game of Venture Capital: Expert Insights," exclusively featured male VC experts. It's wonderful to see that now, 13 years later, women-led VC firms and female VC partners are making their mark in the industry.

Choosing the right VC fund is crucial for maximizing returns and aligning your investments with your values. Here are key factors to consider when evaluating a VC fund, with a focus on impact:

1. Fund Performance

• Track Record: Look at the fund's past performance. Successful funds will have a history of profitable exits and high returns for their investors.

• Portfolio Companies: Examine the startups in the fund's portfolio. Are they innovative and showing growth? A strong portfolio is a good indicator of the fund's potential.

2. Investment Focus

• Industry Expertise: Ensure the fund focuses on industries you're interested in and knowledgeable about. Some funds specialize in gender equality, education, tech, healthcare, or sustainability.

• Stage of Investment: Identify whether the fund invests in early-stage startups (high risk, high reward) or later-stage companies (more stability, potentially lower returns).

3. Fund Managers

• Experience: Research the backgrounds of the fund managers. Experienced managers with a strong network are more likely to identify and support successful startups.

• Reputation: Check reviews, testimonials, and the fund's reputation in the industry. A respected fund is more likely to attract quality startups and co-investors.

4. Alignment with Values

• Impact Investing: Choose a fund that prioritizes investments in companies aiming to solve social or environmental problems. Look for funds with a clear impact thesis and metrics for measuring success.

• Diversity and Inclusion: Look for funds that support diverse founders and inclusive business practices. This not only promotes equality but can also lead to better financial performance.

5. Fees and Terms

• Management Fees: Understand the fee structure. Typical VC funds charge a management fee (usually 2%) and a performance fee (carried interest, typically around 20% of profits).

• Investment Horizon: Take note of the fund's investment period and exit strategy. VC investments are long-term commitments, often spanning 7-10 years.

6. Network and Resources

• Mentorship and Support: Evaluate the level of support and mentorship the fund offers its portfolio companies. Funds that provide strategic guidance and resources can help startups succeed.

• Co-Investors: Consider who else is investing in the fund. High-quality co-investors can add value and credibility to the fund.

7. Due Diligence

• Transparency: Ensure the fund provides clear and transparent information about its operations, performance, and decision-making processes.

Impact Component

8. Measuring Impact

• Impact Metrics: Look for funds that have clear metrics for measuring social and environmental impact. This can include the number of jobs created, carbon emissions reduced, or communities served.

Steps to Begin

1. Research and Shortlist: Identify and research multiple VC funds that interest you.

2. Meet Fund Managers: Arrange meetings or calls with fund managers to ask questions and get a feel for their approach and philosophy.

3. Review Documents: Carefully review the fund’s offering documents, including the private placement memorandum (PPM) and partnership agreement.

4. Seek Advice: Consult with a financial advisor or experienced investors to gain additional insights.

Wondering which Venture Capital Funds are impact focused? Join us.

._{*Please, it is never too early to share these differentiations with others so we are all educated together allowing us all to have an investor mindset. If you need lists or access to any of the above reply back and we will support with our database.}

New Impact Investing Hub

For this week, we're setting aside our usual investment analysis to focus on an exciting new initiative: creating an impact investing network on a backend platform. We want to categorize the private impact investments based on needs and preferences, ensuring a diversified approach.

First, we would like to ask about the impact goals you support. After gathering this information, we will break down the following categories based on what we hear from you.

We can then share many of these impact-led businesses, funds, and projects such as impact businesses, water and sanitation funds and real estate, ensuring they get proper exposure.

Here are the initial categories we've come up with based off where we make connections:

• Returns First, Impact Second: High-growth impact investments such as VC.

• Cash Flow, Passive Income: ie Impact real estate and impact debt.

• Tax Categories: Investments that offer tax benefits.

• High Impact, Lower Returns: Investments with significant social or environmental impact but lower financial returns.

Reply to share your thoughts on these categories and any additional ones you'd like to see. Your input is invaluable in helping us create a comprehensive and effective impact investing network.

Let us know what you think and if there are other categories you believe should be included.

Look around at the real estate and businesses out there—there are ones that prioritize making the world better for you and your generation, and some that don't. We want to support those that prioritize these principles. We look for solid plans with great people leading.

P.S. Whenever you’re ready here are a few ways for us to work together:

1. RISE The Movement Impact Circle:

   Join the RISE The Movement Impact Circle, a network where we collaborate, learn, and dive into vetted, exclusive, private, impact investment opportunities. We share two opportunities from businesses, funds, and real estate - all impact presented by women to women. Next monthly meeting - August 13th. Ready to be a part of this circle of change-makers? Join Us. 

2. Impact Investing Education Program:

   Not ready to invest? Begin the world of impact investing with our 12-week Impact Investing program, designed for women who want to make a difference.

3. Partner with RISE the movement:

   Do you share a commitment to making a positive impact? Our RISE community is a vibrant mix of entrepreneurs, investors, and finance professionals. While our individual values may differ, our shared belief in investing for a better tomorrow unites us. We invite you to collaborate with us and showcase how your organization can empower us to excel in impact investing. 

   Together, we're not just investors; we're changemakers.

   Until next week, keep making an impact!

   Warmly,

   ^Tanaha

@risethemovement

www.risethemovement.com

At R.I.S.E (Rewarding Investments Smart Education) we are committed to educating and providing community for women investors at every stage of their impact investment journey. We believe the key to success lies in education, informed decision-making, and using investments to make an impact.

_{Disclaimer:R.I.S.E. the Movement is an educational platform designed to provide informative resources and foster discussions related to personal finance and investing. We are not registered financial advisors, and the content presented on our platform should not be construed as investment advice. Any information shared or discussed on this platform is for educational purposes only and should not be considered as a substitute for professional financial advice. It is important to conduct thorough research and consult with a qualified financial advisor or professional before making any investment decisions. R.I.S.E. the Movement does not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any actions taken based on the content presented. By engaging with R.I.S.E. the Movement, you acknowledge and agree to release the platform, its creators, and contributors from any liability arising from your use of the information provided.}