Making investments in single startups and venture investments in the early stage phase poses risks also in the impact field. A lot can potentially go wrong between entering the market and being a mature successful impact business. Both on the financial side and on the impact side. The professional approach in early-stage venture investing is diversification. We strongly believe that a portfolio approach is the right way forward in this field.
Our recently published white paper shows a structural gap in the first impact investing rounds, with investment volumes between CHF 0.5 million and 5 million. At SEIF, we are convinced that the portfolio approach is the professional answer to this challenge as it reduces the traditionally high default risk of an investment in a single startup or growth company.