SFDR DISCLOSURE

Information pursuant to Art. 10 of the Sustainable Finance Disclosure Regulation (EU) 2019/2088.

Anthropia Impact Fund I GmbH & Co. KG (“Anthropia” or “Fund”) qualifies as a financial product under Art. 9 of Regulation (EU) 2019/2088 of November 27, 2019 on sustainability-related disclosure requirements in the financial services sector (“Sustainable Finance Disclosure Regulation” / “SFDR”). Article 9 funds have a sustainable investment objective with a strong ESG focus. Anthropia Ventures GmbH („Anthropia Fund Management“ or the Manager) (LEI: applied for; HRB 38189) is the Management Company of Anthropia Impact Fund I GmbH & Co. KG.

The Manager and the Partnership disclose the following information pursuant to Art. 10 SFDR and to Art. 37 to 49 of the Commission delegated Regulation of April 6, 2022 supplementing with Regulatory technical standards (RTS). Anthropia Ventures (“Anthropia”) is a Capital Management Company within the meaning of the German Capital Investment Code. It publishes the following information on its website in accordance with Regulation (EU) 2019/2088 on sustainability-related disclosure requirements in the financial services sector.

Entity-level disclosures

Integration of sustainability-related risks into the investment decision process

For Anthropia Ventures (“Anthropia”), an investment’s impact, including sustainability risks, play an important role in their investment decision-making processes.

We have developed criteria and qualitative standards that define when an investment has a positive impact. These criteria also serve to exclude investments that entail sustainability risks. In this way, we ensure that we only invest in Impact Startups.

“Impact Startups” are companies that are focused on generating positive social or environmental value while operating in an inherently sustainable way.

“Sustainability risk” means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.

Prior to each investment, we conduct a multidimensional impact analysis which, in addition to evaluating ESG risks, is also designed to explicitly invest only in impactful startups. To achieve this, we thoroughly examine the output and outcome of each company as well as possible negative effects of each company. We take sustainability aspects into account before the investment itself, as part of the due diligence process, as part of the preparation of the term sheet, which usually contains provisions on diversity & inclusion and sustainability & environmental governance, and throughout the investment period. As an impact investor, our core principle is that sustainable returns are only possible with clear ESG risk management. Accordingly, it is central for us to consider risks in the areas of environment, health, and social issues that affect our investments.

Remuneration policies

As a registered AIFM within the meaning of section 2(4) of the KAGB, Anthropia Ventures GmbH does not have, and does not need to have, a remuneration policy in accordance with the requirements of the KAGB.

Transparency of adverse sustainability impacts at entity level – principal adverse impact statement

Anthropia considers principal adverse impacts as stated in Table 1 of Annex 1 of the delegated regulation supplementing Regulation (EU) 2019/2088 of investment decisions on sustainability factors on the product level. Anthropia does not consider the principal adverse impacts on the entity level.

Product-level disclosures

Anthropia Impact Fund I GmbH & Co. KG

1. Summary

Anthropia Impact Fund I GmbH & Co. KG (“the Fund”) is managed by Anthropia Ventures GmbH. The Fund pursues a venture capital strategy and invests in Impact Startups, i.e. companies with the intention to generate social or environmental impact alongside a financial return.

The Fund has sustainable investments as its objective. Sustainable investment means an investment in an economic activity that contributes to an environmental or social objective, provided that the investment does not significantly harm any environmental or social objective and that the startups follow good governance practices.

Deutsche Übersetzung

Anthropia Impact Fund I GmbH & Co. KG (“der Fonds”) wird von der Anthropia Ventures GmbH verwaltet. Der Fonds verfolgt eine Risikokapitalstrategie und investiert in „Impact Startups“, dies bedeutet, in Unternehmen mit der Absicht, neben einer finanziellen Rendite, eine soziale oder ökologische Wirkung zu erzielen.

Der Fonds hat nachhaltige Investitionen zum Ziel. Eine nachhaltige Investition ist eine Investition in eine wirtschaftliche Tätigkeit, die zu einem ökologischen oder sozialen Ziel beiträgt, vorausgesetzt, dass die Investition kein ökologisches oder soziales Ziel wesentlich beeinträchtigt und dass die Unternehmen, in die investiert wird, eine gute Unternehmensführung praktizieren.

2. No significant harm to the sustainable investment objective

The Fund will not significantly harm any sustainable investment objective by means of considering principal adverse impacts on sustainability factors in the investment decision process.

To achieve this, the Fund considers sustainability risks early in the investment process and takes the Principal Adverse Impact Indicators (“PAIs”) as stated in Commission Delegated supplementing Regulation (EU) 2019/2088 (“SFDR RTS”) Annex I into account.

The Fund collects all PAIs stated in table 1 of the SFDR RTS. Out of table 2 (“Additional climate and other environment-related indicators”) and table 3 (“Additional indicators for social and employee, respect for human rights, anti-corruption and anti-bribery matters”) the two PAIs “Investments in companies without carbon emission reduction initiatives” and “Lack of anti-corruption and anti-bribery policies” are collected. The PAI indicators are reported on an annual basis.

In addition to the PAIs, a further set of “ESG metrics” is collected. Those metrics especially cover topics such as diversity, unbiased hiring, and mental health which are not to a full extent covered by the PAI indicators but are deemed to be relevant from the Anthropia point of view.

With regards to ESG, Anthropia commits to consider material ESG issues during the pre- and post-investment phase. Therefore, ESG factors are integrated alongside the impact assessment as part of the investment process at Anthropia.

As a responsible investor, the Fund strives to ensure that good governance practices are in place and adhered to during and after investment. This includes the portfolio company’s compliance with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.

Additionally, the Fund does not invest, guarantee or otherwise provide financial or other support, directly or indirectly, to companies or other entities:

  • whose business activity consists of an illegal economic activity (i.e. any production, trade or other activity, which is illegal under the laws or regulations applicable to the Fund or the relevant company or entity, including without limitation, human cloning for reproduction purposes); or which substantially focus on:

  • the production of and trade in tobacco and distilled alcoholic beverages and related products;

  • the financing of the production of and trade in weapons and ammunition of any kind, it being understood that this restriction does not apply to the extent such activities are part of or accessory to explicit European Union policies;

  • casinos and equivalent enterprises;

  • the research, development or technical applications relating to electronic data programs or solutions, which aim specifically at supporting any activity referred above; internet gambling and online casinos; or pornography, or are intended to enable to illegally enter into electronic data networks or download electronic data;

  • Fossil fuel-based energy production and related activities;

  • Energy-intensive and/or high CO2-emitting industries.

3. Sustainable investment objective of the financial product

Anthropia has defined four core “impact cluster” of sustainable investments.

  1. Sustainable Climate Protection:
    Investments in projects focused on renewable energy, environmental protection, biodiversity, species conservation, and measures to combat climate change.

  2. Economic Development:
    Investments in sustainable infrastructure, innovation, industrial development, and fair trade, aimed at promoting long-term economic growth and creating jobs.

  3. Social Justice:
    Investments focused on education, healthcare, gender equality, poverty alleviation, and the promotion of the rights and opportunities of disadvantaged and marginalized groups.

  4. Global Cooperation:
    Investments aimed at promoting collaboration between different sectors and countries to implement sustainable development globally, including the promotion of peace, justice, and strong institutions.

The Fund contributes to the objectives of creating positive impact by building, holding, and managing a portfolio of investments in portfolio companies whose business success is directly linked to positive change, e.g. by contributing to one of the four above-mentioned clusters. This impact needs to be clearly measurable and inherently baked into the business model of the portfolio companies.

4. Investment strategy

The Fund invests in equity and debt-like structures of the portfolio companies, typically in one of the following stages: Pre-seed & seed.

The Fund supports Exit-Oriented-Startups (EOS) and Non-Exit-Oriented Startups (NEOS). By diversifying investments in EOS and NEOS, we plan to optimize both our impact goals and the risk-return profile. The division of impact startups into EOS and NEOS is based on their different business orientations, which are particularly evident in their exit strategies and fundamentally distinct growth logics. In a diversified investment portfolio, the orientation of each portfolio company impacts the overall risk-return ratio of the fund.

EOS (Exit-Oriented Startups) generally have a higher capital requirement due to the scalability potential of their business model. As a result, exponential growth is financed through multiple equity financing rounds, following the traditional venture capital logic. The higher return potential is typically accompanied by a higher risk of failure. 

NEOS (Non-Exit-Oriented Startups) place a stronger focus on achieving profitability at an early stage and therefore generally have lower capital requirements. The lower pressure for growth resulting from the reduced scalability potential and the earlier achievement of positive cash flow lead to a lower risk of failure. NEOS founders usually aim for long-term involvement in their companies, following the “New Mittelstand” logic. After initial funding, few additional financing rounds are often planned or necessary. Instead of an exit, investors’ shares can be repurchased, or equity-like loans can be repaid through generated profits or, for example, debt-like instruments.

The Fund supports EOS and NEOS companies whose products and services have ideally already passed the proof-of-concept stage. Ideally, positive feedback from the target market and an existing client base might already be in place. Investment decisions are subject to a structured selection process with clearly defined investment criteria, particularly regarding the social impact and economic viability of a business model.

The Fund seeks to invest in enterprises where the social or environmental impact of the organisation’s activities is tightly integrated into the enterprise’s business model. In other words, the activities carried out by the enterprise must be inherently socially or environmentally impactful. The more revenue, the more impact.

Additionally, the Fund’s goal is to ensure the best possible good governance of its portfolio startups. Anthropia usually has a major supporting role, takes board seats and are active members for the good of the portfolio company and the Fund.

To find out more about our investment strategy, refer to our Manifesto.

5. Proportion of investments

The intention is that 100% of the investments made by the Fund shall be aligned with the sustainable investment objective.

6. Monitoring of sustainable investment objective

At or prior to the time of an investment in a portfolio company Anthropia defines one to maximum three environmental/social impact goals (“Impact Performance Indicators” - IPI). The Impact Performance Indicator(s) reflect the environmental/social purpose of the portfolio company and its “Theory of Change” pursued in the portfolio company’s environmental/social mission; “Theory of Change” is a model that specifies the desired outcomes of an activity, project or programme, evidencing the underlying logic of causality between action and result, and making transparent its assumptions, influences, and the potential risks of producing undesired effects, which shall be taken into account when establishing the level of desired outcomes achieved.

For each Impact Performance Indicator, one target value reflecting the ambition in proving the realization of the portfolio company’s Theory of Change, during the holding period of the investment, is defined. This Impact Performance Indicator is measured, monitored, and revised on a yearly basis. Anthropia’s Impact Advisory Board will provide an independent outside view and expertise in our assessment.

For example, an Impact Performance Indicator for Startups might be:

  • CO2e reduction or saved

  • Renewable energy installed, converted, stored, 

  • Plastic waste redacted or recovered

  • Affordable housing

  • Improving educational access

  • Healthcare access for vulnerable populations

For more information:
Anthropia Impact Framework - Theory of Change.

7. Methodologies

In order to quantify the attainment of the sustainable investment the Impact Performance Indicator (IPI) is collected at least on an annual basis and benchmarked against the respective target value. The impact performance is then calculated on three different levels: Impact Performance Indicator(s), startup impact multiple and overall portfolio multiple.

8. Data sources and processing

The Impact Performance Indicator and PAIs are collected at least on an annual basis from each portfolio company. The Fund uses reasonable efforts to quality check and pressure test the collected data. The goal is to use objective and quantitative data. However, some metrics may rely – to a certain extent – on estimations.

9. Limitations to methodologies and data

In general, the Fund relies on data collected from the portfolio companies to measure attainment of its sustainable objective. Some limitations may arise from the stage of the portfolio startup. When the startup is in a very early stage, data to evaluate the impact potential might be limited or needs to be based on certain assumptions. In the event of a strategic pivot of the portfolio startup, the Impact Performance Indicator(s) may also need to be adjusted. The adjustment follows the same process as for the initial determination. Furthermore, the Fund invests in novel or nascent technologies. In these cases, established methodologies or historical data to quantify the positive impact may not be existent.

The Fund will approach these methodological and data limitations by capitalizing on the 5+ years of experience of Anthropia Impact Factory in impact measurement as well as continuously improving the existing and developing new standards. Furthermore, the Fund actively works together with impact advisors who provide an independent outside view on potential limitations. All this assures that the limitations do not affect the attainment of the sustainable investment objective.

10. Due diligence

The Impact Assessment (Validation and Measurement) is a key component of any due diligence (pre-investment) at the Fund. The Impact Assessment follows a clear process. It is incorporated at the first touch point (“Screening Phase”) between the Fund and the potential portfolio startup (“Target Startup”) and gets progressively more detailed and comprehensive throughout the Due Diligence process.

During the initial assessment (i.e. after reviewing the pitch deck and before and/or after the first call with the founders of the Target Startup), critical knock-out points related to impact are assessed. These include (among others) the following aspects:

Team: Ideally, the startup founders are a complementary, diverse, impact-driven team.

Additionality: The solution has the potential to significantly improve a relevant problem in a way that would not have occurred otherwise.

Impact Performance Indicator: The impact needs to be clearly measurable and an integral part of the business model.

Scalability: The impact is scalable as the business model: the more revenue, the more impact is generated.

When the Due Diligence process continues, potential knock-out points related to impact are further assessed with the help of our Impact Framework. It supports a detailed impact summary (incl. systemic impact of a startup). In addition, the Impact Framework helps to define the Target Startups’ Theory of Change and to set the Impact Performance Indicators in a structured way.

The impact process is accompanied by experienced members of the investment team. If necessary, an external impact advisor board member is consulted. The result of the impact assessment is an important part of the investment decision by the investment committee.

11. Engagement policies

The Fund will work through appropriate governance structures (e.g. board of directors) with portfolio startups with respect to environmental, public health, safety, and social issues, with the goal of improving performance and minimizing adverse impacts. The goal is to not only measure impact and ESG related topics but to actively engage with and motivate the portfolio startup in that regard. For this reason, Anthropia requires that all investees sign certain impact requirements in a term sheet at point of first investment that typically includes clauses on (among others):

Sustainability: Our portfolio companies are committed to reducing or keep their environmental footprint as low as possible (GHG emissions).

Team Health: The Fund seeks to support the mental health of portfolio startup founders and the team by helping them set up supportive structures and processes (e.g. coaching).

Diversity, Equity, and Inclusion: The Fund’s portfolio companies are encouraged to promote and embody diversity, equity and inclusion.

12. Attainment of the sustainable investment objective.

Not applicable. A reference benchmark for attaining the sustainable investment objective has not been designated for the Fund.