The Better Ventures 2023 Impact Report

Each year when we compile our Impact Report, it is an opportunity to reflect on the progress we’ve made as a firm, the talent and innovation being applied to address significant environmental and social challenges, and the contribution of our investment dollars to building a better world. We started Better Ventures over a decade ago with the conviction that you can make money and do good. It is rewarding to see that coming to fruition both in terms of investment performance and the growing impact of our portfolio over time.

In 2023 our companies contributed to the reduction or avoidance of 4.7 million metric tons of carbon emissions, equivalent to taking over 1 million gas-powered passenger vehicles off the road for a year or the energy consumed by 600,000 homes in one year. In addition, they have positively impacted the lives of over 67 million people, about the size of the United Kingdom’s population.

How We Think About Impact

We are investing to build a “Better Economy”. Since the dawn of the industrial revolution, economic success has been measured by a single metric: growth. Unfortunately, this traditional economic model has led to a growing list of challenges. Our reliance on fossil fuels has pushed our planet to the brink, and our consumption habits are rapidly depleting the Earth’s natural resources. Meanwhile the wealth gap continues to widen, creating social division and instability. A sole focus on growth and efficiency, particularly in our food system, has contributed to declining health. Rising healthcare costs and uneven access to care further threaten individual and societal well-being.

These issues are not just environmental or social concerns — they are fundamentally economic ones. Climate change disrupts supply chains and destroys infrastructure. Inequality stifles innovation and reduces consumer spending power. Resource depletion raises production costs and limits future economic growth.

We need an economic system, and an approach to investing, that prioritizes both people and the planet — a Better Economy.

Building a Better Economy

A Better Economy prioritizes the well-being of people and the planet alongside traditional economic goals. Businesses focus on renewable energy, responsible resource use, minimal waste generation, and ethical production practices. Everyone in society, irrespective of background or socioeconomic status, has the opportunity to learn, work, and share in the benefits of economic growth. Economic decisions take into account social and environmental impacts, fostering a healthy and livable planet and population, with affordable and accessible healthcare.

This may sound like a pipe dream, but we should strive towards this as our goal. And there is immense cause for optimism that we can actually achieve it. Global renewable energy capacity saw a record increase of 473 gigawatts in 2023, driven by dramatic cost reductions in solar and wind power (IRENA, 2024). Advances in battery technology have led to an 85% cost drop in lithium-ion batteries from 2010 to 2020, facilitating greater use of renewable energy, while electric vehicle numbers surged to over 10 million worldwide in 2020 (IRENA, 2020). In addition, international agreements, such as the Paris Agreement, and net-zero pledges from over 130 countries covering 76% of global emissions, underscore the global commitment to tackling climate change. The private sector is also stepping up, with over 8,000 companies joining the Science-Based Targets initiative (SBTi) and investments in green technologies reaching $1.8 trillion in 2023 (BloombergNEF). The International Labour Organization estimates that there will be 25 million net new jobs created in the transition to the “green economy” (ILO).

At Better Ventures, we invest in solutions that catalyze the transition to a Better Economy across four key areas:

• Decarbonized Industry — Enabling the shift to renewable energy, increasing energy efficiency, and actively managing carbon emissions.
• Sustainable Production & Consumption — Designing products and systems with less extractive inputs, less energy use and waste, and maximizing the reuse of goods and materials.
• Healthy Lives — Making healthcare more preventative, effective, affordable, and accessible.
• Equitable Opportunity — Closing the opportunity gap in society through education, work, and financial wellbeing.

We believe a holistic approach to tackling these interrelated challenges is essential for building a Better Economy.

Measuring Impact

As an impact-focused firm, tracking our impact has always been important to us. In 2021 we revamped our impact methodology to create a custom approach that was rigorous, relevant, and appropriate for our early-stage companies. We built on established frameworks such as Iris+ from the Global Impact Investing Network (GIIN), B Corp, and the UN Sustainable Development Goals (SDGs), to provide our companies with a clear toolset for how to think about and track their own impact from inception through growth.

Over the past three years, we’ve worked with our companies to report climate metrics, such as Greenhouse Gas Emissions Avoided, Waste Avoided/Reduced, Water Monitored/Use Avoided, and societal metrics, such as People Served and Indirect Quality Jobs Facilitated. We consider it imperative to not only monitor but also openly share the impact our portfolio companies have on the world. Without this data, it is challenging to assess tangible impacts, identify areas for growth, and draw insights that refine both our investment strategy and operational approach.

2023 Impact Results

In 2023 our companies contributed to the reduction or avoidance of 4.7M tons of carbon emissions and positively impacted the lives of over 67M people, a substantial increase from 2022. This surge is largely due to the growth of several of our portfolio companies that are revolutionizing human health and the workforce.

Many of our companies are still early and don’t yet have robust impact results, but they have immense potential. In the report we highlight some of our newer 2023 investments — companies spearheading innovations in science and technology poised to make substantial impact in the decades ahead. For example, Specifx, an HVAC intelligence system, has the potential to substantially decarbonize buildings, and Ren focuses on renewable energy for global supply chains, targeting Scope 3 emissions. Zya is transforming how our bodies use food by harnessing the power of enzymes to convert sugar into fiber. And Litlab uses AI to improve children’s reading skills. These companies represent our holistic approach to a Better Economy — from decarbonized industry to healthy lives to equitable opportunity.

Lastly, we are proud to share an update on our company founder demographics, which highlights our commitment to backing diverse teams and underrepresented founders. Across our four funds, 44% of our portfolio companies are co-founded by women while ~48% are co-founded by Black, Latino, and other founders of color.

Since our last report, we’ve built upon our DEI playbook for our companies to create a strong foundation for diversity and inclusion in their workforce as they grow. We track company hiring and HR policies to ensure they stay focused on implementing these goals, and we share templates and other resources that encourage inclusive company culture. To support diverse hiring, we partner with 15+ recruiters who prioritize diverse candidates in talent searches.

The Way Forward

We’re proud of the impact our companies are having in the world, and yet we know we still have our work cut out for us. Building a Better Economy is a long-term goal, and it may be impossible to ever achieve the full idealistic vision. It requires a shift in mindset; collaboration among governments, businesses, investors and individuals; and a commitment to long-term sustainability. But the potential rewards are immense — a thriving planet and a more equitable society — and that’s what we should strive to achieve.

At Better Ventures we do that through investing in and supporting smart and passionate founders working on difficult problems. We invest in Pre-seed to Seed stage companies, leveraging innovative science and technology to create significant impact at scale for people and the planet. If that sounds like you, we’d love to connect!

Read the full report here.