After a midway presentation, it became evident that for a venture capital (VC) firm, investment opportunities can be like intricate puzzles, with the crux being clarity. After doing an initial scope of the market and regulatory trends relevant to our case, we grappled with the task of updating and developing performance metrics for a portfolio company in accordance to new trends, like Scope 3 emissions reporting, and our client’s desired impact. Here's how we navigated this complexity:
The portfolio company, a startup driven by innovation, belongs to an industry that is still in its nascent stages. The company claims and seems like it is reaching immense impact with its adoption, but closer inspection and exchanges with the client revealed that there are still doubts on the extent and veracity of impact it is achieving. Realizing that the core question of “what” the impact looks like and in what ways can growth and impact be operationalized was still unclear, we are starting to hone in on exploring what these metrics should look like, and approaching our methodology as to how these could be tracked by our client in the future.
The client seeks both financial returns and a positive impact as a firm focused on investing in the Circular Economy. From our more general research question, my group used precise language to articulate what our work scope will look like— from a more general “update” or “development” of key metrics, it has evolved into answering questions like what (or lack of) opportunities exist for firms like the portfolio company, and what can the client expect in the near term as to the prevalence and embeddedness of such firms in the world.
In this journey, clarity in language was our most valuable tool in simplifying these complexities. It ensured that everyone involved shared a common understanding and worked towards shared goals that are achievable in the time frame we have. As consultants, I have learnt that it is the most important to be nimble to changes that follow research, and to be confident in what the work you produce is telling you as the direction that is right to go to for the client.