Problem
Which pressing societal issue do you aim to address? Which SDG(s) is this issue linking to
About Impact
The Rubio Aligned Impact Model
At Rubio we’re as mission-driven as the entrepreneurs we back. Your impact targets are our own. That’s why we only invest in the most outstanding impact businesses that are tackling major world issues, with no trade-off between revenue and impact.
Quantifying impact is essential
We actively support you in setting clear quantifiable impact targets. These targets are always developed bottom op, based on the impact methodology below. These targets reflect exactly what level of impact we want to achieve during our shared journey to building a world class company and are in full alignment with the financial performance.
Unique validation process
Setting impact targets is a complex process. To make sure we pick the right targets, we created a unique three-step validation process. First, we set the targets together with you. Next, our external Impact Advisory Board (consisting of Lisa Hehenberger, Pier Vellinga, Astrid de Reuver and Leendert van Driel) validates pre-deal, and lastly, our investor council (the investors in our fund) validate our impact targets post deals. Once we have invested, we track the ongoing impact performance and report this to our Fund Investors.
100% of our carry is linked to impact targets
The financial renumeration of team Rubio is linked to both impact and finance targets. Our first hurdle is impact (100% of our carried interest – the amount of money we take after returns to investors – is linked to impact) If during the time of our investment the combined portfolio does not reach their impact targets, we don’t see our carried interest. This mechanism avoids conflicts of interest between impact and financial performance as our VC’s return is tied to both: no impact = no rewards.
Social impact performance model
We developed our social impact performance model together with the European Investment Fund in 2014. Rubio’s Fund I – which we opened in 2015 – was one of the first in Europe linking impact and carry, and we are proud to say that we overachieved on our impact targets (impact multiple > 1).
We are still one of the few impact funds in the world linking our carried interest completely to both financial and impact returns, but are happy to see others starting to move this way. There is no golden standard in the market yet, so we want to keep learning, developing and sharing!
For more detail on our impact performance please see our impact report below.
Impact methodology
Let’s start with the fundamental; the Theory of Change
What
Which effects do you want to achieve? Do these effects follow (directly) from your solution?
Who
Who benefits from your solution and how important is this for the people (or planet) experiencing it?
How much
How big are the effects in size and significance? What are the 1–3 measurable KPIs? Can they be linked to SDGs?
Additionality
What would have happened regardless of your solution?
Systemic impact
Does your company aim to change the system on a macro level?
But we won’t forget the building blocks of sustainable impact
Alignment
Do your company’s effects scale with financial growth, i.e. are impact and business model aligned?
Operations
Are you integrating The UN Global Principles in your everyday operations?
DNA
Is your organisation always looking to learn and to become better at achieving the impact mission?
As your impact partner in crime, we support you in every way
Together we set 1-3 impact performance indicators to monitor and track your impact, linked to your business forecast and applicable SDGs
Our Impact Advisory Board & independent investor council will provide expertise and external validation of the impact indicators
Impact anchored in the governance of both our fund & your company (Articles of Association)
We align incentives for impact & business; carried interest Rubio team linkedin to both finance and impact results
Together we go on a mission for radical positive change
We challenge you in yearly impact sessions to bring impact management within your organisation to the next level.
We systemically evaluate the impact & business progress at both fund and company level
Want to learn more about the impact of companies we invest in?
Go on an interactive journey through the collective impact highlights of our Rubio portfolio in 2022.
Download our yearly impact reports below:
