ESG demand driving investors towards venture capital

More investors are turning to responsible investing strategies that allocate towards fledging companies in healthcare and technology, according to a venture capital firm.

Stoic Venture Capital partner Geoff Waring commented he has seen more investors have been drawn towards investing in nimble and fast-growing start-ups that target environmental and social concerns, particularly climate change.

The demand has risen from the public, large fund managers and individual wealth sophisticated investors, who are looking at allocating more to venture capital managers.

“Recent disasters such as the pandemic and NSW floods and bushfires have led more investors even further towards socially responsible investing,” Mr Waring said.

“Investors want to know that their money is working towards positive social goals and are seeking more rigorous reporting from companies about how they achieve those goals.”

Another area investors are focusing keenly on is diversity and inclusion, in line with increasing concern about progress towards equality, he added.

“Start-ups that rank higher in terms of diversity and inclusion are preferred among companies whose technology has positive social impacts,” Dr Waring said.

“Investors understand that companies which prioritise gender diversity and supporting more inclusive places for LGBTQI+ are more socially sustainable in the longer term.”

Venture capital firms that focus on economically viable solutions to environmental and social issues are expected to stand out from the pack.

https://www.investordaily.com.au/markets/49031-esg-demand-driving-investors-towards-venture-capital



Also in News and Media

Is it time for Australia to rethink skilled migration?
Is it time for Australia to rethink skilled migration?

Stoic Venture Capital partner Geoff Waring welcomed the Australian government’s proposed review of the tax treatment of venture capital funds as a key measure to help lift the nation’s economy and global competitiveness amid COVID-19, announced during the budget.
Read More
ESG needs better disclosure standards
ESG needs better disclosure standards

Fund managers should be subject to more rigorous standards to ensure their disclosures about environmental, social and governance (ESG) investing are accurate, according to Stoic Venture Capital.
Read More
Stoic Venture Capital commits further to healthcare following Cardihab success
Stoic Venture Capital commits further to healthcare following Cardihab success

Stoic Venture Capital has committed to further bulking up its healthcare investments as the prevalence of chronic disease such as cardiovascular disease continues to rise.
Read More