Impact venture capital firm, Giant Leap, has closed its second VC impact fund at $45 million. The fund raise is three times the size of its fund, which closed in 2016 at $15 million, and has invested in 15 companies.
The fund is backed by a diverse group of investors, including NRMA, entrepreneurs Kate Morris and Dom Pym, and venture capital veteran Roger Allan.
The second impact fund will continue to invest in its core themes: sustainable living, health and wellbeing, and empowering people. Giant Leap is particularly interested in investing in companies that are developing solutions to climate change, mental health, and inequality.
It’s already made allocations to More Good Days (psychology based pain management), Trace (removing barriers to climate action) and Hex (entrepreneurship education) . It aims to grow its portfolio to 25 within the next five years. Over 55% of Giant Leap’s portfolio consists of women-led businesses.
“We started Giant Leap as a means of funding and tackling some of the world’s biggest challenges. As of FY22, Giant Leap’s portfolio diverted 1,103 tonnes from landfill, saved the healthcare system $42.4m and helped 2,503 people due to reduced bias in the hiring process or improved access to employment.” says Partner Will Richardson.
“But in addition, Giant Leap has tackled some key challenges in Australian business a lot closer to home, such as diversity. We’ve committed to ensuring that 55% of our portfolio consists of women-led businesses. We also continue to look at ways to improve our funds exposure to other forms of founder diversity.”
Giant Leap is committed to contributing to the growth of the impact sector in Australia. Earlier this year the team released its second Impact Startups Benchmark Report, exploring the evolution of the startups, and the investment potential, at home and overseas.
“This is all in line with our belief that investing with purpose leads to greater returns. The companies we work with have an unfair advantage on their competitors due to their ability to win both talent and recognition for their broader contribution to society and the environment.” Will says.
“We’re continually inspired by the work that’s going on aboard. But I also believe Australia has come a long way in the past five years regarding its contribution to the impact investing trend.”