Global Impact Fund II
Market-leading returns by backing social entrepreneurs, especially people of color and women.
About The Fund
The Global Impact Fund II (GIF II) is a $10M venture capital fund that invests in companies led by social entrepreneurs with a preference for companies led by people of color and women. GIF II's impact focus is primarily in environmental sustainability, health and health care, education, financial technology, socioeconomic mobility, and income equality, although GIF II is also permitted to make investments in other sectors.
GIF II is unapologetic about making market-leading returns for investors by investing in social impact businesses. This model is based on the Global Impact Fund, LLC, (GIF I) a Delaware based venture capital company. GIF I has made five equity investments, realizing stepped up valuation events so far in 5 of these investments 4-years into the 10-year life of GIF I with an average internal rate of return based on such valuation events in excess of 3.5x.
GIF II leverages deal flow from the entrepreneurs graduating from The Global Good Fund Fellowship Program as well as other community incubator and accelerator programs. GIF II is woman and black-led. The diversity of the entrepreneurs the fund invests in is reflected in the diversity of the investors, Advisors, and Investment Committee, including black, brown, indigenous Indian, LatinX, women, and people with disabilities. Part of the carry from the GPs of the impact fund will be donated to The Global Good Fund.
What is it?
» A venture capital fund seeking market-leading returns by backing social entrepreneurs, who are people of color and women
When was it started?
» Global Impact Fund I has been around 4-years (started December 2016)
» Global Impact Fund II did its first close February 2021. We’re in business!
How much money are you looking to raise?
» $10,000,000. To date, we’ve raised $4,800,000.
» Our goal for the fund is to produce 3.5X net financial returns for our investors
How is it related to GGF?
» Global Impact Fund II is a sister company to The Global Good Fund. They are two separate companies. The Global Good Fund is a 501(c)3 nonprofit organization that philanthropically supports both nonprofit and for-profit organizations while Global Impact Fund II is a for-profit venture capital fund that invests in for-profit companies for market-leading returns.
What types of companies are investing in?
Investing at the intersection of competitive returns and social enterprises
» For-profit companies
» Companies that produce competitive investment returns
» Social enterprises
» Geography: Predominantly in the United States
» 5 Industry Sectors: Health, Environment, Education, Financial Inclusion and Social Economic Mobility
What stage are the companies you are investing in?
» Lead in Seed, participate in Series A
» 20 investment, $200-500K per investment
Who is leading the fund?
» Carrie Rich, Managing Director
» Daron Coates, GP of Global Impact Fund II, Co-Founder of ThinkBox
Paul Orentas, GP of Global Impact Fund II, Co-Founder of ThinkBox
How do we get information about it?
» Contact firstname.lastname@example.org for more information
What has the Fund done to date?
» Global Impact Fund I invested in 5 companies, 4 of which are Global Good Fund Fellows. 80% of the portfolio companies are led by people of color and women. The companies are performing well financially and in terms of social impact.
Global Impact Fund II has made two investment commitments to date as of its inception in February 2021.
Summary of Terms:
» Investment Period: 5 years
» Term of Fund: 10 years
» Structure - Delaware Limited Partnership
» 2% Management fee, 20% carry (typical VC fund structure)
» Woman & black-led fund
» Investor base, GP, Investment Committee, and Advisors reflect the diversity of the entrepreneurs the impact fund invests in.
» Part of the carry from the GP’s carry goes to support The Global Good Fund. In other words, investment through the Global Impact Fund II (as well as Global Impact Fund I) is a long-term gift to The Global Good Fund. For entrepreneurs that receive investment from Global Impact Fund II, they are not only scaling their businesses but also creating wealth for overlooked investors who were previously not invited to participate, all while simultaneously creating long-term opportunities for other social entrepreneurs through The Global Good Fund.