Impact Investing

SV2 makes investments in early stage companies with social or environmental impact at the core of their business model. We are especially focused on allocating capital to founders from underrepresented backgrounds. SV2 is looking for three types of return: social or environmental impact, financial return, and “return on learning” – our Partners learn by doing, as they hear pitches, conduct diligence, and allocate SV2’s pooled capital. Our collaborative practice has a ripple effect: as Partners gain skills and experience, they may choose to begin or deepen their own impact investing practice, aligning their capital allocation with their personal values.

How does it work?

SV2 hosts a monthly meeting on Zoom to hear pitches from two early stage, impact focused companies. At any given meeting, there is a mix of seasoned and newer investors; all experience levels are welcome. Many Partners attend pitch meetings regularly, and others attend on a drop-in basis. SV2’s Investment Committee meets directly after the pitch meeting to vote on potential investments and make other strategic recommendations for SV2’s portfolio and impact investing work.

After each monthly pitch meeting, if there is interest in moving either company forward, a small team of Partners conducts diligence over 3-4 weeks, using a structured format. Diligence is presented to SV2’s Investment Committee at the following month’s meeting. Investment Committee members vote on every deal, and Diligence Team members vote on the deal on which they conducted diligence.

SV2 typically invests at the pre-seed or seed stage, and our check size is $25K – $50K. We invest across many sectors, including climate, education, and economic opportunity. Just as with our grantmaking, investments are made using pooled funding that Partners contribute to SV2. When our investments make a return, the money cycles back into SV2’s mission.