Next Wave US Impact Fund I
United States of America
Last updated 11 May 2020, by Impactyield.
Next Wave US Impact Fund I makes investments that increase diversity in early stage investments by investing primarily in women led entrepreneurs in the U.S. with companies that improve overall health, expand quality educational opportunities, provide clean energy alternatives and develop models for sustainable food production.
Building on pilot programs in the US and Europe last year, which brought together nearly 200 women and made 18 investments in early stage companies, we are launching the Next Wave US Impact Fund I. This fund will follow a triple-bottom-line model of investing (people, planet, prosperity). Companies that aim to improve our health, expand quality educational opportunities, provide clean energy/tech, and develop new models for sustainable food production are examples of the kinds of firms we will seek to invest in with this new fund. Impact does not mean giving up return.
The Next Wave US Impact Fund I includes the following:
• The opportunity to choose the investment size that feels most comfortable to you. We are ideally seeking women that can commit to $10,000 a year for three years, totaling $30K over the three years.
• The maximum investment is $100,000 per year, or $300,000 total over the three years.• Our target fund size is $3M - $5M.
• Investments in 6 -8 entrepreneurial companies per year, with the fund following a triple-bottom-line model of investing (people, planet, prosperity) and diversification by sector, stage, and geography.
• Our target fund size is $3M - $5M.
• The annual fund fees range from 1% - 2%, depending on the level of investment and INCLUDE fund expenses, such as the organization and formation of the fund, as well as legal and accounting expenses. This means the vast majority of your money is getting put to work in investments in our portfolio companies. This is the lowest cost investment vehicle available that we are aware of, thanks to our generous deal leads and partners. Details of the terms are provided in the legal documents that will be provided to interested parties and will supersede any other communications.
• The Next Wave US Impact Fund I will be open to our private community and networks for individual investments of between $30,000-$300,000 over the first three years of the fund. This multi-year investment strategy expands beyond the approach in the first pilot funds, which will allow us to make some larger investments and lead some deals, as well as participate in follow-on rounds in our portfolio companies.
• After the initial investment is returned, per deal, the profits are split with 20% to the fund/80% to the investors, calculated by individual investment. (Details of the terms are provided in the legal documents and supersede any other communications.)
Equal rights to ownership basic services technology and economic resources
Encourage companies to adopt sustainable practices and sustainability reporting
Sustainable food production and resilient agricultural practices
Universal access to sexual and reproductive care, family planning and education
Free primary and secondary education
Double the improvement in energy efficiency
Expand and upgrade energy services for developing countries
Key performance indicators
Asset manager: Next Wave
Product track record: Fund has 5 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - committed capital
Style/Stage: Angel Stage
Inception year: 2017
Vintage year: 2017
Target close date: 01/05/2017
Product term: 10 year term
Assets under management: 5,000,000 USD (US Dollar)
Investment size: Min: 100,000; Max: 500,000; Avg: 250,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 1.5%
Carried interest: 20%
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: The ten lead investors for the fund are listed below. We can accept up to 90 LPs. Alicia Robb, Boulder, Colorado Wendee Wolfson, Washington, D.C. Marcia Dawood, Dallas, Texas Janine Firpo, Seattle, Washington Jodi Pederson, Jackson, Wyoming Sue Bevan Baggott, Cincinnati, Ohio Elizabeth Crowell, New York City, NY Wingee Sin, San Francisco, California Kristina Montague, Chattanooga, TN Heather Henyon, Manchester, VT Lillian Lakes, Cambridge, MA Silvia Mah, San Diego, CA
Limited Partner / Investor Type: Endowments/Foundations, Family Office
Building on pilot programs in the US and Europe last year, which brought together nearly 200 women and made 18 investments in early stage companies, we are launching the Next Wave US Impact Fund I. This fund will follow a triple-bottom-line model of investing (people, planet, prosperity). Companies that aim to improve our health, expand quality educational opportunities, provide clean energy/tech, and develop new models for sustainable food production are examples of the kinds of firms we will seek to invest in with this new fund. Impact does not mean giving up return. In fact, more than half of 10 companies in the first US fund would have qualified as impact as we are defining it for the new fund.
The collaborative investing model continues, which entails nine experienced female angel investors leading the investment committee and providing mentoring to up to 90 accredited women investors that joined as limited partners. The main goals are to provide a transparent, interactive, and educational process, as well as a competitive return, and to prepare the next wave of smart and capable women investing in entrepreneurial companies. This model provides diversification more quickly and easily than placing investments in one company at a time.