Invest for Better

Recalibrate to a Higher Standard

The problem: perception versus reality

The venture capital sector exhibits a longstanding market dislocation: as demonstrated by readily available evidence, it continues to hyperconcentrate capital as it fails to appropriately price risk and opportunity.

Meanwhile — partly as a result of its market dislocation — the sector has underperformed its return objectives, created “successes” which minted billionaires while impoverishing workers and communities, and celebrated “game-changing” companies with harmful or outright toxic effect to their employees, environment, and society.

For astute investors, this alone offers more than sufficient rationale for moving capital away from where it is suboptimized and toward more favorable risk and opportunity.

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Raise the bar: financial returns + positive impact

For investors who have experienced epiphanies as a result of one or more multiple interconnected crises in 2020 (and years prior), there is the additional recognition that investment returns cannot be separated from other investment outcomes.

There is no such thing as an “externality.” Channeling capital to the status quo not only suboptimizes risk and return, it reinforces the status quo, which has demonstrably negative impact. By contrast, one of the most immediate ways investors can seek positive impact is by redirecting capital away from the status quo and toward managers and companies creating positive financial AND other outcomes.

Higher standards at work

Reinventure Capital is no different from our conventional VC peers in our pursuit of top tier financial returns; that’s a given. However, we believe that investments can and should do much more than deliver a base financial return, so we intentionally set a higher bar in at least three important respects:

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We invest exclusively behind the founders they can’t see or choose to ignore.

Reinventure Capital invests solely in US-based companies led by Black, Indigenous, and other People of Color (BIPOC) and/or womxn of all identities. Multiple reputable sources agree these are the founders who are best positioned and most likely to lead us out of our disastrous economic and social circumstances, while driving superior financial returns.

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We invest to grow positive impact economic engines.

Reinventure Capital invests in companies commercializing solutions to real problems, at or near breakeven and poised to grow profitably. We know from our President Ed Dugger’s successful track record of profitably investing to advance racial equity that these are the companies that are structured to generate new wealth, equitable opportunity, and intentional social, environmental, and other impacts.

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We invest for a majority of successes.

Reinventure Capital rejects the catastrophic winner-take-all dogma. We would count one or two runaway successes out of a portfolio of majority casualties to be a disaster. Following the playbook Ed pioneered — in which only a sixth of the portfolio companies failed — we are committed to a majority of companies in our portfolio becoming profitable return-generating enterprises, with as few casualties as possible.

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Reinventing investing: an illustrated playbook

Reinventure Capital is reinventing investing free of myths, contrary to systemic racial / social / gender biases, and guided by facts rather than conventional wisdom. By design, the Reinventure Capital investment strategy is nearly orthogonal to conventional venture capital practices, as illustrated in this helpful infographic: Reinventure vs Conventional VCs.

Because our high impact + high return venture investing playbook is calibrated to reality rather than conformity, it is configured in every respect to deliver both nonconcessionary financial returns and intentional, measurable impact. It also changes lives in ways that are difficult or impossible to quantify, but priceless.

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