Together with UBS Wealth Management, Rethink Impact has managed to raise a giant $110 million for social start-ups that are led by women. This includes companies in the health, education and environmental sectors.
Rethink Impact is a venture capital firm that invests in entrepreneurs, technology platforms and networks that are geared towards change and solving real-world problems. They aim to stand behind entrepreneurs who are generally underfunded but have the potential to generate exceptional financial and societal returns.
While businesses with all-male founders received $58.2 billion in venture capital funding in 2016, women only received a mere $1.46 billion even though studies show that companies with a female founder performed 63% better than those founded by men.
Jenny Abramson and Heidi Patel are the women behind Rethink Impact and together with the help of UBS Wealth Management, they’ll be able to start highlighting the impact that female-run businesses have on the local economy and the world.
“My partner, Heidi Patel, and our team believe that the next generation of extraordinary companies will find success through their diversity coupled with relentless pursuit of their mission, for the benefit of all communities,” said Abramson.
More than half of the $110 million that was raised came from UBS clients, which include high net worth individuals and institutions. During the World Economic Forum’s Annual 2017 Meeting in Davos, UBS committed to direct at least $5 billion worth of client assets into new SDG-related impact investments over the next five years.
“We prioritize financial returns above all else for our clients. Yet, fundamentally, we believe in companies whose social impact enhances their financial returns and whose financial returns fuel their social impact,” says John Amore, managing director, UBS Wealth Management Americas
To date, Rethink has made 8 investments and is aiming to grow their portfolio to at least 20 gender-diverse companies.
Abramson believes that women will hold two-thirds of the country’s wealth by 2030 and that there has never been a better time to enter the field of impact investing.
To find out more about Rethink Impact, click here.