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FOV Ventures' Commitment to ESG Integration

FOV Ventures' Commitment to ESG Integration

At FOV Ventures we’re investing in the future of computing. The future may look different to today’s status quo but the key part of our investment strategy is that it should be a sustainable one that has a positive impact for us all. Our commitment to integrating Environmental, Social, and Governance (ESG) principles from the outset is evident in our focus on emerging technologies like Spatial Computing.

These sectors promise to reduce physical resource consumption and environmental impact significantly. For example, by enabling virtual interactions that replace the need for travel and by optimizing industrial processes, these technologies enhance efficiency and reduce waste.

As a pre-seed and seed fund, embedding ESG principles at the core of our operations and those of our portfolio companies is also foundational to our approach. Solid ESG practices from the outset are crucial, and as we often provide the initial funding, it is our responsibility to equip these companies with the necessary resources and education. By doing so, our strategy not only supports sustainable practices but also:

  1. Helps build companies that can navigate the challenges of reaching sustained business growth

  2. Ensures that they are well-prepared to attract additional funding, positioning them for long-term success and sustainability.

Overview of FOV Ventures' ESG Achievements in 2023

As 2023 was Fund I’s first full operational year, this is our very first survey. It serves as a tool for us to offer concrete and relevant support where and when it is needed.

The survey includes responses from a total of 23 portfolio companies with a 100% response rate. Below is a snapshot of the respondents and the key takeaways.

  1. Portfolio Overview and Diversity Achievements
    This year, our portfolio companies have created 289 new jobs, signaling robust growth and a dynamic entrepreneurial environment. Notably, 17% of these companies are led by female founders. While we celebrate this progress, we recognize the ongoing need to enhance board diversity and empower more female entrepreneurs across the ecosystem.

  1. Commitment to ESG Practices in Early-Stage Startups

    Despite being in their formative stages, 66% of startups within FOV Ventures' portfolio have already established ESG goals, demonstrating a proactive commitment to integrating sustainable practices from the outset. This early adoption underscores emerging companies' importance on ESG principles, recognizing their potential to enhance long-term viability and attract further investment. FOV Ventures supports this forward-thinking approach by providing essential resources and expert guidance, ensuring that these startups not only set ambitious ESG targets but achieve them, paving the way for a sustainable future in the tech industry.

  2. Environmental Practices and Challenges

    One of the most concrete challenges facing early-stage teams at FOV Ventures is the scarcity of resources. These startups, while eager to embed sustainability and governance within their operations, often grapple with limited resources and the need for rapid growth.

    Additionally, many of these startups have not yet begun to measure their greenhouse gas emissions, a fundamental step in understanding and mitigating their environmental impact. This lack of initial measurement poses a significant barrier to developing targeted strategies for sustainability.

Conclusions - Commitment to Continued ESG Integration

While we have made substantial progress, challenges remain, particularly in establishing robust environmental practices in early-stage startups. For 2024, our goals include equipping startups with the necessary tools and guidance to establish and expand their ESG frameworks, ensuring that sustainability is embedded in their growth journey from the very start.

For more information, please contact [email protected].