17 July 2024

At The Money: When Your Investments Make an Impact

1Frameworks

6Insights

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Impact Investing Dual-Return Strategy

Screen investments for financial returns and measurable societal benefit

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Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Hot Take· 1

Hot Take09:40

The Wealth Transfer Could Punish Funds Without an Impact Lens

Darabi argues that next-generation principals care strongly about impact investing and that a major wealth transfer will shift this preference into capital allocation. Barry Ritholtz adds research indicating that millennials report impact investing at roughly twice the rate of baby boomers.

Next-generation family-office principals are described as especially impact-conscious
A large wealth transfer can change which fund mandates attract capital
Ritholtz cites a 40 percent versus 20 percent generational participation gap
Darabi expects funds without an impact lens to face pressure

“with this one trillion dollar wealth transfer that's taking shape right now, you better believe it that fund that don't have an impact lens are…”
Soraya Darabi · 09:52

“Over forty percent of millennials report engaging in impact investing versus just twenty percent of baby boomers.”
Barry Ritholtz · 10:12

#wealth transfer#millennials#investor demand#impact investing

Explainer· 2

Explainer03:23

Why TMV Does Not Lead With the Impact Label

TMV serves limited partners with different motivations: some deliberately seek impact exposure, while others primarily want strong returns. Darabi says the firm therefore presents itself through the sectors it invests in rather than making impact the headline of its public identity.

Some limited partners invest specifically to align with TMV's impact verticals
Other limited partners are primarily seeking strong financial returns
TMV describes itself through its investment sectors rather than an impact label
The firm is neither a generalist nor confined to one vertical

“Some of our LPs are investing in TMV because we just deliver great returns for them full stop.”
Soraya Darabi · 03:38

“we lead with the sectors in which we invest to plus year old antiquated industries and ripe needive innovation and reimagination.”
Soraya Darabi · 03:56

#fund positioning#limited partners#venture capital#impact funds

Explainer07:41

Ridwell's Fourth Bin Makes Hard-to-Recycle Items Useful

Ridwell is a subscription recycling business that Darabi says serves more than 100,000 Americans. Its “fourth bin” handles materials that do not fit ordinary trash, recycling, or composting, including paint, batteries, and plastics.

TMV invested in Ridwell at the pre-seed stage
Ridwell offers a subscribed, privatized recycling service
The fourth bin focuses on materials that are difficult to recycle
Darabi expects regulation and material shortages to expand the opportunity

“what they do is they make it easy for Americans to upcycle.”
Soraya Darabi · 07:55

“We call it the fourth bin. Not recycling, not trash, not composting, but upcycling things that are hard to recycle”
Soraya Darabi · 07:58

#ridwell#upcycling#sustainability#recycling

Q&A· 1

Q&A09:01

Who Actually Supplies Capital to Impact Funds?

Asked who typically invests in impact funds, Darabi answers that the base spans foundations, pension funds, banks, public companies, and ultra-high-net-worth family offices. TMV's examples include the Visa Foundation, a pension fund for nuns, several banks, and globally prominent family offices.

Impact-fund capital is not limited to one investor type
Foundations and pension funds can invest alongside commercial banks
Public companies and global family offices also participate
Investor motivations range from mission alignment to returns and innovation exposure

“It's all of the above and so which which is lucky for me.”
Soraya Darabi · 09:13

#impact funds#institutional investors#family offices#fundraising

Tool· 1

Tool05:51

How Clockwise AI Reorganizes a Workday Around Focus

Darabi describes Clockwise as an AI tool that uses predictive analysis to rethink calendar use. In her own schedule, it placed focus time after the podcast and combined two investment meetings into one block so she could run the day more efficiently.

Clockwise applies predictive analysis to calendar scheduling
The tool can protect focused work after meetings
It can combine compatible meetings to reduce fragmentation
Darabi presents saved time as an important form of AI-enabled efficiency

“Clockwise basically uses predictive analysis to go in and help you rethink how you're spending your time.”
Soraya Darabi · 06:02

“Clockwise combined two different investment meetings this afternoon into one to allow me to run my day more efficiently.”
Soraya Darabi · 06:16

#clockwise#ai tools#calendar#focus time

Takeaway· 1

Takeaway11:34

TMV Ignored Web3 and Stuck to Its Core Sectors

Darabi says TMV has passed on interesting but speculative industries rather than chase buzz. The firm stayed focused on healthcare, sustainability, supply chain, mobility, and AI that expands access to work or gives people time back.

TMV deliberately avoided chasing hype
Web3 is Darabi's example of an industry the firm ignored
The fund maintained a consistent set of sector convictions
Darabi connects time-saving AI with mental health, family time, and flexible work

“We're not chasing buzz or hype. We ignored Web three for better or for worse, as one example.”
Soraya Darabi · 11:41

“And giving us back time, Barry, means better mental health, It means more time with our families.”
Soraya Darabi · 11:58

#investment thesis#web3#sector focus#venture capital