IMP Matrix Rating: C4
What: SJF Ventures V is a $175 million fund investing in high-growth companies creating a healthier, smarter and cleaner future. Its mission is to catalyze the development of highly successful businesses driving lasting, positive changes, in sectors such as clean energy and climate, circular economy and logistics, mobility and govtech, health, education, future of work, and sustainable food.
Who: SJF partners with companies to reach higher-need beneficiary groups, engages with companies that employ workers from vulnerable populations to improve job quality and worker benefits, helps to model and quantify company carbon mitigation impacts, and more. It invests almost exclusively in the United States.
How Much Impact: Founded in 1999, SJF Ventures has invested in 70 portfolio companies, employing more than 14,000 individuals. While there have not yet been any investments in this new fund, the following are highlights from previously invested companies: Nextracker, a renewable energy company that has delivered 50 gigawatts of solar tracking systems globally; HYLA, a circular economy company that has reused or recycled over 62 million cell phones through its trade-in programs; Vital Farms, an ethical food company that supports more than 200 family farms and operates as the third publicly traded Public Benefit Corporation; mPulse Mobile, a healthcare engagement and communication platform powering over 500 million health conversations annually; Jopwell, the nation’s leading career platform for Black, LatinX, and Native American professionals; ShipMonk, an e-commerce logistics company that created 800 new jobs in the last two years; Waycare, a mobility data platform that allows cities to reduce traffic congestion and crashes; and TemperPack, a sustainable packaging company that has replaced polystyrene in 500 million shipments to date. More info can be found in their 2020 impact report.
Our Contribution: our contribution was negligible, given that we participated in a very oversubscribed closing of their fifth fund, which filled up quickly given the firm’s excellent track record at both impact and financial returns.
Impact Risk: SJF has started to systematically review impact risk for all of its investee companies, which is commendable. Among previous funds’ investments, key risks include: the risk that impact focus will disappear upon sale of the company by the fund, the risk of unproven technologies, the risk of widespread market adoption of VC-backed firms’ products and/or services, which as per any early-stage companies, possess lots of potential, but only if sufficient scale is achieved.
Sample Investment: SchooLinks, a complete set of tools to enable K-12 school districts to improve student performance and empower educators, with solutions ranging from educating younger learners about potential careers, helping explore and apply to colleges, or finding entry level positions to jumpstart a career.