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Oakland-based venture capital firm Better Ventures<\/a>\u00a0recently closed its second fund at $21 million according to cofounder and managing director Wes Selke.<\/p>\n The firm was originally founded as an accelerator called Hub Ventures<\/a> to help social entrepreneurs running so-called\u00a0\u201ctriple bottom line<\/a>\u201d startups. These companies measure their success not only by revenue and profitability, but also by their products\u2019 quantified, positive social or environmental impact.<\/p>\n Famous examples of social ventures include outdoor gear and\u00a0apparel\u00a0makers Patagonia<\/a>, which \u00a0promises to protect and preserve the environment, and\u00a0Tesla Motors<\/a> which aims to \u201caccelerate the world\u2019s transition to sustainable energy\u201d with electric vehicles and now solar products.<\/p>\n By 2013, after running the accelerator for three years, Selke said that he and cofounder and general partner Rick Moss decided to become more of a \u201chigh engagement seed fund.\u201d\u00a0That would allow them to invest higher amounts of capital into for profit, for good companies, and stick with founders for more than a few months of bootcamp-style mentorship, he\u00a0explained.<\/p>\n Limited partners in Better Ventures\u2019 second fund are a mix of high net worth individuals, and mission-based investors. They include: Prudential\u2019s corporate social responsibility group<\/a>, the Schmidt Family Foundation<\/a>, Treehouse Investments<\/a>, and individual VC\u2019s\u00a0and tech executives including Foundry\u2019s Brad Feld, KPCB\u2019s Tina Ju, Evernote CEO Chris O\u2019Neill, and Recurrent Energy CEO Arno Harris.<\/p>\n Better Ventures\u00a0will typically invest between\u00a0$250,000 and $400,000 in early stage companies, reserving some capital for follow-on rounds at the Series A and B stage in those startups.\u00a0But what qualifies as an \u201cimpact\u201d investment when so many companies talk a\u00a0good game about\u00a0changing the world today?<\/p>\n Better Ventures cofounders Wes Selke and Rick Moss outside of their offices in Oakland, Calif.<\/em><\/p>\n Selke said:<\/p>\n \u201cA large number of companies claim to be good for people or the environment. And some industries are inherently \u2018good,\u2019 like healthcare or education. But a lot of startups make products that will only be available to people who can afford to spend, and that could actually exasperate divides in our society. A good litmus test is to ask if\u00a0your company\u2019s\u00a0product or service closes an opportunity gap in society.\u201d<\/p>\n Better Ventures\u2019 portfolio includes startups\u00a0working on everything from cleantech, to health, HR and financial services today.<\/p>\n Among these are: SunFunder<\/a>, which helps communities\u00a0finance off-grid solar projects; LeadGenius<\/a>, which helps un- and under-employed people find new ways to make a living; and Iris Plans<\/a> which helps\u00a0patients with serious chronic illnesses to navigate a complex medical and insurance system.<\/p>\n More than\u00a0half of Better Ventures\u2019 portfolio companies are based in the East Bay, mostly Oakland and Berkeley close to the firm\u2019s own offices at Oakland\u2019s Impact Hub<\/a>.\u00a0Although\u00a0most recently, the firm participated in a $1 million seed round for New York City startup, WERK<\/a>, which is building a marketplace of flexible work opportunities specifically for women.<\/p>\n Better Ventures is especially interested in backing companies that make renewable energy more affordable and accessible, or whose products serve un- and underemployed people, or those who don\u2019t have disposable income and reliable access to tech and financial services.<\/p>\n But a mission-based approach doesn\u2019t mean the firm is overlooking financial fundamentals.<\/p>\n Selke said, \u201cAs soon as you say impact investing a lot of people will roll their eyes and think \u2018concessionary returns.\u2019 But we only invest in\u00a0startups that have an opportunity to build a very exciting, scalable business.<\/p>\n Our\u00a0investment angle is that entrepreneurs are just more intrinsically motivated when they\u2019re personally connected to a problem they are solving. When they are mission driven, they can also attract and retain top talent, people who are looking for a higher purpose in their work, which we are seeing play out in our portfolio.\u201d<\/p>\n <\/p>\n![\"Better](\"https:\/\/i0.wp.com\/www.rsoftsolution.com\/blog\/wp-content\/plugins\/RSSPoster_PRO\/cache\/dd241_better_ventures_selke_moss.jpg?resize=640%2C427&ssl=1\")
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