Traditional investment objectives focus on EBITDA multiples. So easy....right?
Nowadays, we include Impact as a core objective, but suddenly pipeline and measurement become tricky problems.
We at Discovered Markets love tricky problems.
As a solution, we look to a systems approach. A systems approach is one where the problem definition and problem-solving are rooted in the concept that individual businesses are part of an interrelated and interdependent system.
Including a systems approach in an investment thesis allows a fund to:
- Expand potential pipeline companies by identifying the interlinked and dependent impact that is caused by an investment decision
- Provide better management advice to portfolio companies when understanding the full cause and effects of business activities
- Increase impact across a sector or geography by influencing and catalyzing behavior of non-portfolio companies and other impact investors
- Accelerate future fundraising by creating a broader definition and measurement of impact
We love talking to new and existing funds about how to incorporate a systems approach. Get in touch!