How we select, invest and add value

Investment Strategy Summary

Smart and patient capital

Investment focus

Investment criteria

Exclusion criteria

Ananda Impact Ventures makes its first investment in a company at an early stage (Seed / Pre Series A / Series A). We look for passionate entrepreneurs who want to build outstanding impact driven companies.

The financing of such a venture is a shared journey involving several stages. It is a journey in which we continue to support the fund’s portfolio companies. The typical involvement starts with an initial investment in the range of € 500K – € 2M and can grow up to a total investment of € 7M over several rounds and stages of maturity. On this path, Ananda Impact Ventures is usually joined by our network of international growth investors that can syndicate substantial investment rounds of up to € 20M.

Smart capital

Impact enterprises need smart and patient capital. This includes our support in all questions of business infrastructure. In personal meetings, we co-create the right financing model, define common milestones and discuss the best way to create a return on the capital.

Clear focus

Being entrepreneurs ourselves, we know the challenges that founders are facing. This is why we are perfectly positioned to support their path to growth. We always have an eye on the vision: creating impact, i.e. developing solutions to social or environmental problems in a sustainable and highly effective way.

Strong network

We know how important it is to go beyond financial support. Ambitious entrepreneurs need high-profile contacts and top-notch legal, PR and management advice. Exchanging ideas with other impact entrepreneurs is another value add. We have built a unique network of professionals – from investors, experts, managers, to organizations and impact enterprises in all relevant fields. These ‘ambassadors’ are our flexible backbone, a powerful infrastructure that adds great value to our target investees.

Personalities count

For us, the entrepreneurs and their missions are front and center. They are inspiring individuals who are capable of building successful teams and oustanding enterprises. Their projects serve as ‘role models’ in their sectors and have potential for (international) expansion. They develop scalable business models that lend themselves for strong dynamic growth.

Impact comes first

Successful ”impact approaches” exist in many fields. Our first and foremost goal for an impact enterprise is to address a social or ecological problem in a sustainable and highly effective way. Our main impact themes are education, inclusion, ageing population, long-term unemployment, health and sustainable consumption. As long as the societal challenge is relevant and the solution direct and scalable, we are open to other high-impact areas, too.

Starting at proof of revenue model

We support high-growth enterprises whose products have passed the proof of concept stage. Target investees bring positive feedback from the market, an existing customer base and measurable indicators for real impact achieved. In addition, we focus on mature impact enterprises who require capital to continue boosting their growth .

In Europe’s heart

We are the first pan-European impact venture fund and a pioneer in our field. Our strategy is to support enterprises that operate and create impact primarly on European ground. With our home base in Munich and an office in London, we are at the heart of the European impact investing market and also feel the pulse of the venture capital scenes.

The right amount

Our investments range from €500,000 to €3.5 million. For more mature enterprises, we draw on our network of co-investors to syndicate rounds of €5 million or more. We usually act as lead or major co-investors, but are open to holding minority stakes in cases of particularly promising impact. Our holding periods typically span 5 to 8 years.

Structures that fit

Our range of financing structures spans from mezzanine to equity. All structures are designed to fit perfectly to each business model, stage and exit scenario, as well as to meet the founders’ personal exit preferences.

Strong impact

The key to success lies in the social and ecological impact of the target investee. It can be clearly measured, is well-defined by key performance indicators and positions the enterprise at the peak of its sector.

Effective team

There is no success without an extraordinary team. The enterprise has motivated and capable professionals who know how to maximize impact while creating a sustainable and economically viable business.

Financial position

The financial position of the enterprise is sound and able to service the investment. In case of a pure equity injection, it is a must for us to see a realistic exit window. The business model allows for high growth expectations and the impact is measurable and intrinsic to the business model (i.e. it grows with in direct proportion to the revenues).

Best practice

Within its peer group and target market, the business model has to be among the most efficient and impactful solutions.

Some paths are not meant to cross

Not everyone can be the right fit for us – and vice versa. We exclude any projects that do not create a positive impact or show no potential for positive financial return. In particular, these are projects or enterprises that are directly or indirectly related to sectors such as nuclear energy, defense, addictive substances, or that risk being involved in child labor. In addition, organisations with political overtones or links to fundamentalist religions do not belong to our target investees. Ananda Impact Ventures does not participate in turnaround situations, bail-outs or government initiatives that exclusively foster workplace security. As a principle, risks and opportunities should be equally shared among all stakeholders within the projects that we decide to support.