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Chicago-based Impact Engine is a women-owned and led business, investing in companies driving positive impact in education, economic empowerment, health, and environmental sustainability through both direct company investments and funds.
Impact Engine is a venture capital and private equity investment firm focused on growing companies that generate positive outcomes in education, health, economic empowerment, and environmental sustainability.
They focus on underprivileged groups of people, in their own words: “Businesses… that are founded by and/or create opportunity for people historically underserved by existing markets can be categorized as having a people-based impact. The potential to create income through jobs, business ownership, and services that increase the likelihood of gainful employment can create lasting change for individuals and their communities”.
The Impact Engine is a Chicago-based accelerator and venture fund that focuses on supporting startups that are creating social and environmental impact. The organization was founded in 2011 by Linda Darragh, Chuck Templeton, and Jamie Jones, with the goal of addressing the lack of investment and support for companies working in the social impact space.
Linda Darragh, a clinical professor of entrepreneurship at Northwestern University's Kellogg School of Management, recognized the need for an accelerator that focused specifically on impact-driven businesses. Chuck Templeton, who had previously founded the restaurant reservation platform OpenTable, and Jamie Jones, who had experience in consulting and nonprofit management, joined Darragh to launch The Impact Engine.
The organization's first cohort of startups was selected in 2012, and included companies working in fields such as sustainable agriculture, renewable energy, and healthcare. The Impact Engine provided these startups with funding, mentorship, and access to a network of impact investors and advisors.
Since then, The Impact Engine has continued to support early-stage companies that are creating positive social and environmental impact. In addition to its accelerator program, the organization has also launched a venture fund, which invests in companies that have completed its accelerator program or that meet its impact criteria.
Over the years, The Impact Engine has helped to establish Chicago as a hub for social impact entrepreneurship. Its alumni include companies like Healthy Roots Dolls, which creates dolls with natural hair to promote positive self-image among children of color, and AMPY, which creates wearable technology that converts motion into power to charge mobile devices.
Today, The Impact Engine continues to support impact-driven startups through its accelerator program, venture fund, and other initiatives. The organization remains committed to fostering a thriving ecosystem of social and environmental entrepreneurs who are working to create a more just and sustainable world.
Impact Engine’s mission is to bring more capital to a market where financial returns are linked to positive social and environmental impacts. They manage funds for institutions and individuals that invest in for-profit, positive-impact businesses in private markets. They do both Venture Capital and Private Equity investing.
Impact Engine was launched in 2012 with the goal of recognising entrepreneurs starting businesses with the potential to drive both good financial returns and positive social impact. Impact Engine raised two accelerator funds in 2013 and 2014, all centred on investing in early stage companies. In total, Impact Engine invested in a portfolio of 23 companies.
In 2015, Impact Engine changed its investment strategy and raised a $10 million venture fund that invested in 22 companies. In 2018, they started operating as a public benefit corporation and investing from their second venture fund. They also launched a new product focused on supporting emerging impact private equity funds.
In 2018, Impact Engine raised the capital from 32 unnamed investors as part of a new $25 million fund, according to an SEC filing.
Impact: The primary criterion for investment is the potential for social or environmental impact. The Impact Engine looks for companies that are addressing important social or environmental issues, such as climate change, healthcare access, or poverty reduction. The organization seeks to invest in companies that have a clear mission and a measurable impact.
Scalability: The Impact Engine also looks for companies that have the potential for growth and scalability. This includes companies with innovative business models, strong intellectual property, and a clear path to market. The organization seeks to invest in companies that have the potential to create significant impact at scale.
Team: The Impact Engine evaluates the team behind each potential investment, looking for individuals with experience in their industry and a strong track record of success. The organization seeks to invest in companies with diverse and skilled teams that are committed to the mission of the company.
Financials: The Impact Engine evaluates the financials of each potential investment, looking for companies with strong revenue potential and a clear path to profitability. The organization seeks to invest in companies with sound financial models and a clear plan for growth.
Diversity, Equity, and Inclusion: The Impact Engine also considers diversity, equity, and inclusion in its investment criteria. The organization seeks to invest in companies that prioritize diversity and inclusion in their hiring and business practices, and that have a commitment to addressing systemic inequalities.
https://www.crunchbase.com/organization/the-impact-engine#section-overview
https://www.theimpactengine.com/
https://medium.com/@theimpactengine/the-5ps-of-impact-25c39a964fba
https://impactalpha.com/chicagos-impact-engine-raises-10-million-for-new-fund/
https://www.crunchbase.com/organization/the-impact-engine
https://pitchbook.com/profiles/investor/61514-20
https://www.builtinchicago.org/company/impact-engine/jobs
https://www.chicagobusiness.com/topic/impact-engine
https://impactassets.org/ia50/fund.php?id=a012R00001KeCObQAN
