Think Global, Invest Local
Rhiza’s mission is to mobilize capital urgently needed to achieve the UN Sustainable Development Goals by 2030.
Our investments are guided by potential for both significant impact and financial success.
We create funds, partnerships, and opportunities that support ventures, contributing to the SDGs, that generate a positive social or environmental impact alongside a financial return.
Our thesis is that companies created to solve the worlds problems have a higher chance for impact and financial success hence we invest in the Sustainable Development Goals while generating a financial return.
We can invest in all 17 SDGs, as they are all important, however we are currently investing in the SDGs listed here. Click each one to learn more about these critical priorities.
We can’t manage what we don’t measure. We layer existing, widely accepted measurement frameworks to assess and accelerate our company’s, portfolio’s, and Rhiza’s overall impact.
Impact assessment begins before we approve an investment.
We select for companies whose product or service is the impact. Prospective investees are first screened for whether their product and business model has the potential to make a meaningful, scalable social or environmental impact, aligned with the UN Sustainable Development Goals.
We integrate deep analysis of a company’s management team, product, market, and growth potential with the B Lab Impact Assessment framework.
The B Impact Assessment framework aids our analysis of a company’s impact model in the realms of Governance, Community, Workers, Operations, and Environment.
At the outset of every investment, a company will benchmark their impact business model with one of the 17 Sustainable Development Goals and one or more of that Goals’ indicators and sub-indicators.
The SDG and B Impact Assessment benchmarks form the baseline for ongoing impact measurement, monitoring, and improvement.
Once a company and team have been thoroughly assessed by the Rhiza team and the mission, model, and potential are deemed a fit, the company will be presented to an Investment Committee.
The Committee is comprised of a strategic mix of local leaders with business, non-profit, and governance experience. Committee members can be, but are not required to be investors in a Rhiza fund.
The Committee will dive into the team’s assessment and adjudicate the proposed deal. A deal is approved by Committee consensus. Committee approval is also required for follow-on investments in companies already in a Rhiza portfolio.
As much as is reasonable, we incorporate reporting and targets in the deal terms with our investees. As a direct investor and intermediary it is Rhiza’s duty to our investors to ensure we represent their interest to the highest possible potential. Likewise, we are patient and supportive long-term partners with the companies we invest in and do as much as we can to ensure they achieve their impact potential.
Key to our value as in investor and partner is our stewardship of deep impact strategies and business models. We monitor company impact metrics alongside financial performance so we can offer expertise, make key connections, and communicate strategically.
We also encourage and aid our companies in certifying as a B Corp, or becoming a Benefit Company in British Columbia (though neither are required). B Corp is an effective way of solidifying a business for good and cementing lasting impact.
As impact investors, we have a duty to our investors to achieve the co-equal goals of substantive impact and financial returns. We commit to annual impact reporting for Rhiza in general, and in depth for the Coast Venture Root 3 fund.
Impact measurement and reporting is a diverse and changing space. There are several frameworks in the sector and we endeavor to be adaptable. We employ the Sustainability Assessment tool from Sustainability Advantage to aid us in efficiently adapting company metrics to multiple frameworks.
The most difficult stage to predict and manage impact is when exiting a company.
We work diligently to choose the right companies, support their impact business patiently and completely, attract aligned co-investment partners, and when appropriate facilitate an aligned exit opportunity for our position.