IMP Matrix Rating: C4
What: Astanor Ventures Good Harvest Fund II is a “soil to gut” venture capital fund, meaning that it invests across the agrifood value chain: from the regeneration and efficient use of the primary resources in our seas and soils across sustainable and circular methods of production and distribution, while compensating fairly the workers along the supply chain, in order to provide nourishing, healthy and sustainable products for the final consumer and the human gut.
Who: It invests in companies according to 6 guiding principles: protection of resources (minimizing waste), soil and oceans regeneration, food integrity via greater supply chain transparency, biodiversity, innovating for freshness, and nutritious foods. Therefore, there are positive impacts for the environment as well as all the stakeholders of the food system, from producers to consumers, as well as the animals involved (or the lives of animals saved).
How Much Impact: Astanor published its first impact report for 2020-21, outlining the impact of individual companies part of its previous strategy, Fund I. It has not yet published a report for Fund II, and the hope is that it will aggregate measurement across the fund to provide overall portfolio metrics. To track the progress of its portfolio, Astanor has developed a robust impact management and measurement system, centered on six KPIs: GHG emissions, water use, biodiversity, social impact, health, and climate tech data. Astanor’s impact-linked carry system, by which up to 30% of carried interest will be distributed to NGOs and charities if the team fails to deliver on its impact goals, bolsters its impact credentials and ensures mission alignment.
Our Contribution: We invested among the last LPs in the final close, therefore our contribution is minimal.
Impact Risk: Fund I has a slight misalignment risk in that there were portfolio companies in food delivery, e-commerce, and social media platforms which are not as impactful as others, as they offer “nice-to-have” solutions for conscious consumers in high income brackets in the developing world. Our hope is that with greater maturity, the strategy of Fund II will avoid such companies. Another significant impact risk comes from technology: investing in innovation means that if those companies fail to innovate, there will also be no impact.
Sample Investment: Cervest, a software helping clients discover, analyze and act on the climate risks and opportunities facing their assets (Fund I - tbd for Fund II).