The Evolution of Impact Investing, Returns of Impact-Driven VC Funds, Women In Venture, The Future of VC, & more: VC Evolve Podcast with VCpreneur and Rama Chakaki of Transform VC.

VC Evolve Podcast
Written By Ahmad Takatkah
 
 

Guest Intro:

Rama Sakaki is a partner at Transform VC. Rama is a Syrian American impact tech founder, investor, and philanthropist with 30 years of experience in media, telecom, EdTech, FinTech, and AI.

Before TransformVC, Rama worked as a VC at Turn8. She also founded and led Baraka Ventures, and Baraka Advisors.

As a founder, Rama co-founded KeyBridge, EdSeed, BakarakBits, Mint+Laurel, and Aya Animations.

She’s a founding member of “Arab Women in Computing”, and “Women Angel investment Network (WAIN)”. In addition to her VC role, Rama runs an edTech nonprofit (VIP.fund) supporting youth impacted by conflict.

In today's episode with Rama:

1. Transform VC's Impact-Driven Thesis: Transform VC looks for technology that serves social or climate aspects, addressing exclusions in sectors like health and education, and ensuring inclusivity in AI development. The firm focuses on startups that articulate and measure social impact metrics alongside financial success.

2. Evolution of Impact Investing: Impact investing has evolved from initiatives like microlending for poorer communities. Investors now look for founders disrupting traditional systems, balancing financial returns with social impacts.

3. Distinguishing Impact Investing from Other Terms: Terms like ESG, SRI, and impact investing, although similar, have nuanced differences. They all aim for environmental and social impacts, but impact investing specifically focuses on companies with a bottom line in these areas, in addition to financial returns.

4. Criteria for Impactful Companies: To be considered impactful, companies must holistically benefit all community stakeholders without negatively impacting any group. Examples include ensuring equitable access to solutions and avoiding practices that favor one group at the expense of another.

5. Returns on Impact-Driven VC Funds: Historically, impact investing was synonymous with patient capital and lower returns. However, advancements in technology like AI and network effects are changing this, allowing for high financial returns without compromising social impact.

6. Investment Requirements for Impact Startups: Impact startups don't necessarily require more capital than other startups. They may need more strategic and collaborative work upfront, including input from social scientists, to ensure their business models positively impact stakeholders.

7. Women in Venture Capital: Women represent a small percentage of check writers and manage a minimal amount of venture dollars. Networks like Global Women in VC aim to increase women's representation in venture capital. Increasing awareness, education, and showcasing role models are key strategies to encourage more women to enter the VC industry.

8. Innovation in the VC Model: The VC industry can benefit from using AI and other technologies to improve efficiency and accountability. There's a need for streamlined processes for founders to connect with VCs and for higher standards in impact investing.

9. Future of VC Industry: The VC industry is expected to grow, especially in emerging markets and industries requiring bold funding for novel ideas. There's an opportunity for more educational programs and awareness to encourage diverse participation in VC.

10. VIP Fund for Youth Impacted by Conflict: The VIP Fund is a U.S.-based charity focusing on higher education for youth affected by conflict. It provides online education and funds higher education, mainly in technical fields, to support students in conflict-affected regions.

11. Participation in VIP Fund: People can volunteer or donate to the VIP Fund through their website or the Ed Seed crowdfunding platform.

VC Evolve Podcast is hosted by VCpreneur: Ahmad Takatkah.

Join VCpreneur Newsletter on https://www.vcpreneur.com/

VC Evolve Podcast:

Conversations about the future of VC. We talk about the Venture Capital model evolution: How has VC evolved in the past? What innovations are being introduced to the traditional VC model? What will it look like in the future? We also talk about VC data, VC books, VC tech stack, VC funds, VC skill set, challenges, opportunities, and more.

Available on:

Ahmad Takatkah
Next

Managing $4B AUM With A Micro Team & Still Add Value! Asset Allocations, Evolving Tools For VCs, Future of VC, & more: VC Evolve Podcast with VCpreneur and Seth Levine of Foundry Group.