Investing with Impact: A Conversation with Kieran McLoughlin
In this episode of Chasing Unicorns, Adam Griffiths, Head of Taylor Wessing Ireland, is joined by Kieran McLoughlin, Co-Founder & Managing Partner of VentureWave Capital. They discuss how today’s investments can deliver lasting social and environmental benefits alongside strong financial returns, emphasizing the growing significance of impact investing.
The Philosophy of Impact Investing
Kieran McLoughlin explains the core philosophy behind impact investing, where profit and purpose work hand-in-hand. At VentureWave Capital, they believe achieving both significant financial returns and positive societal outcomes is possible. This double-bottom-line approach focuses on creating value for investors while addressing global challenges like sustainability, health, and economic equality.
The Role of ESG: Environmental, Social, and Governance
The conversation delves into ESG factors, distinguishing impact investing from traditional investment strategies. While many companies now commit to ESG principles, Kieran highlights that impact investing goes further. It involves setting measurable goals, tracking progress, and maintaining transparency. This ensures that ESG initiatives are not just for show but are actively driving change in business operations.
Consumer Demand and Innovation:
Kieran emphasizes the increasing consumer demand for products aligned with ESG values. He shares examples from VentureWave’s portfolio, such as DropChef, MediHive, and XOCEAN, innovating in sectors like sustainable food, healthcare, and renewable energy. These companies thrive by solving pressing global challenges and meeting the growing demand for socially and environmentally responsible products.
Measuring Impact: Frameworks and Standards
Kieran discusses the impact measurement frameworks VentureWave Capital uses to track progress against the UN Sustainable Development Goals (SDGs). Integrating these standards into their investment process ensures that financial success and social impact are aligned and measurable. This transparency strengthens investor confidence and ensures accountability.
Investor Collaboration and Engagement
One unique aspect of VentureWave Capital’s approach is the direct engagement between LPs (Limited Partners) and portfolio companies. Kieran explains how this active involvement helps accelerate growth and enhance impact, benefiting both the ventures and the investors. By fostering close relationships, VentureWave creates a collaborative environment that drives long-term success and more profound value.
Navigating Economic Cycles and ESG Demands
Finally, Kieran addresses the potential challenges that economic downturns might pose to ESG-focused investments. Despite these challenges, he remains confident that the demand for sustainable, purpose-driven companies will continue to rise. Consumer preferences are shifting, and businesses prioritising ESG values are likelier to thrive in the long run, even in recessionary environments.
Guest Insights
Kieran McLoughlin highlights how VentureWave’s active management style sets it apart from traditional venture capital firms. Their hands-on approach ensures that companies grow financially and deliver positive societal and environmental outcomes.
He also reflects on the global impact of technology-driven companies, stressing the importance of aligning financial goals with social responsibility.
