Key Points
- ALIVE Ventures, a Latin American VC, is using a deep impact measurement strategy that listens to end customers for gauging success and driving value.
- Such an approach provides tangible business benefits, aids in investee and fund-level impact performance evaluation, and improves overall financial performance.
- ALIVE Ventures’ second fund will tie its carry to impact performance, facilitating greater accountability and transparency.
- The startup’s impact measurement practices are viewed favorably by Limited Partners, who are demanding more meticulous impact reporting.
- ALIVE Ventures’ investees have also seen the benefits of this practice, asserting that it helps retain talent and attract funding.
Latino-American VC, ALIVE Ventures, is reporting success in using a deeper impact measurement strategy that involves listening to end customers. Over five years, the fund manager has demonstrated that this approach not only benefits all stakeholders but contributes to the long-term success of impact investments. The company’s second fund will tie its carry to its impact performance based on the Impact Management Project’s Five Dimensions of Impact. The impact data collected from customers forms a critical part of ALIVE’s evaluation of investee and fund-level impact performances and influences decision-making processes. Further, this innovative approach enhances transparency and accountability while also supplementing the fund’s overall financial performance. For investees, the deep impact measurement approach offers several benefits, from attracting talent and funding to identifying areas for improvement.
