That is why alignment is everything. From the very beginning, we have asked ourselves: What does it take to build impactful companies that stay true to their mission as they grow? The answer is structure, clarity, and shared commitment.
So we built our Impact Termsheet.
It is not a side document or a values statement. It is a practical tool that helps us and our founders stay aligned where it counts: in writing, in practice, and in long-term strategy.
The Impact Requirement Clause: Impact, Protected
Every company we invest in is mission-driven. But what happens when that mission is tested by growth, market pressures, or changes in leadership?
Our Impact Requirement Clause ensures that impact is not just a pitch. It is a core condition of the partnership.
“The company is required to stay within its mission statement. KPIs must be set to measure the company’s impact. Ananda reserves the right to sell its shares in the event of a significant deviation from the company’s societal mission, subject to right of first refusal by existing shareholders.”
— Extract from Ananda’s Impact Termsheet
We take this one step further through our Impact Carry Model, which we co-developed with the European Investment Fund in 2014. It aligns our financial incentives with impact outcomes.
- We only begin to earn carry if at least 60% of portfolio-wide impact KPIs are reached.
- From there, the carry scales in proportion to impact.
- Above 80%, we are eligible for full carry, but only if the financial return is also on target.
This model is now used by more than 80 funds globally. We are proud to have led the way.
Diversity and Inclusion Clause: Creativity Through Difference
Diversity is not just a value. It is a competitive advantage.
Our termsheet encourages portfolio companies to become leaders in building diverse and inclusive teams, especially at leadership level. We define diversity across gender, ethnicity, socio-economic background, disability, sexual orientation, age, and other key dimensions.
“The Company strives to create and maintain a diverse team, especially at the leadership level.”
— Extract from Ananda’s Impact Termsheet
At Ananda:
- 48% of our founding teams are diverse in gender, ethnicity, and disability
- 50% of our own team reflects this same diversity
We are proud to hold Level 2 accreditation from Diversity VC, recognising our commitment to inclusion in venture capital.
Founders’ Health Clause: Leadership Needs Care
In 2018, we began including Founders’ Health Clauses in our termsheets. We saw what too many in our ecosystem still overlook: founder burnout is a real risk, and founder well-being is essential for long-term success.
In 2023, we expanded this into the Ananda Founders’ Health Programme, a structured offering of coaching, workshops, peer support, and ongoing resources.
“The Founders’ physical and mental health is vital for the success of the Company. The topic of Founder Health shall be discussed on a regular basis at Board level.”
— Extract from Ananda’s Impact Termsheet
We encourage all founders to work with external, independent coaches and to use support resources at the company’s expense, especially in challenging times.
Environmental Clause: Making ESG Actionable
Startups do not need generic ESG policies. They need relevant and achievable action.
Our Environmental Clause ensures every company we invest in evaluates and improves its environmental footprint as it grows. Within 12 months of investment, each company must adopt an environmental policy, measure its footprint, and define steps for reduction.
“Post-closing, management commits to building on its ESG policy or, if none exists, to establishing best practices for environment, society, and governance.”
— Extract from Ananda’s Impact TermsheetSince becoming an Article 9 fund, we have formalised this further with standardised ESG KPIs and a portfolio-wide data collection project. We are helping early-stage startups to understand, manage, and improve their sustainability performance.
Why It Matters
We built the Impact Termsheet because mission drift is real.
Because diversity does not happen by accident.
Because founder health is not a luxury.
Because sustainability begins with clarity and commitment.
This document shows how we put our principles into action.
It is how we back our founders not only with capital but also with conviction and accountability.
And it is how we help build companies that stay true to their purpose from the first investment to scale.
If you are building something that matters, we are here to help you protect your mission, strengthen your leadership, and align your impact with every milestone ahead.