“Venture Impact Metrics provide a framework for measuring the social and environmental impact of investments. They include both quantitative and qualitative assessments, allowing investors to gauge the effectiveness of their impact strategies and the tangible benefits generated by their portfolio companies. Impact Framework: The “For Progress” model uses Impact Key Performance Indicators (KPIs) to evaluate and report how companies contribute to the UN Sustainable Development Goals (SDGs), combining quantitative and qualitative assessments for transparency. Company Development Stages: Idea Stage: Aligning the company’s mission with SDGs. Offering Stage: Developing products/services tied to specific KPIs. Traction Stage: Publicly reporting impact metrics to showcase progress. Examples and KPIs: FairFinance Microloans: Focuses on poverty reduction, tracked by KPIs like the number of people lifted out of extreme poverty. Agron Sustain: Enhances agricultural productivity with KPIs related to crop yield and sustainable practices. HealthNet Global: Provides affordable healthcare, measured by KPIs such as accessibility of health services. Supportive Roles - “For Progress Support” Companies: These firms aid impact-driven businesses with essential services, like software or consulting, although they don’t directly measure impact. SDG Integration: The model applies to both for-profit and non-profit entities, creating a universal impact-driven approach. Reporting and Transparency: Regular iKPI updates ensure ongoing transparency and effectiveness in addressing global challenges. KPI Utility: KPIs help startups and investors track, report, and enhance their impact in alignment with global sustainability goals.

As impact investing grows, these metrics become crucial for investors who aim to align their financial objectives with societal and environmental goals, ensuring that their capital contributes to positive change 456.