Eka Ventures Closes $95M Impact VC Fund - Sustainable Investing

Growing Consumer Demand for Ethical and Sustainable Products

A significant and increasing number of consumers are actively seeking products and services that address pressing global concerns, such as climate change and societal issues. This trend has fueled the emergence of ethical investing platforms, carbon footprint reduction tools, and more conscientious shopping options.

Consequently, it is logical that venture capital firms are now establishing funds specifically designed to invest in these burgeoning consumer-focused sectors.

Eka Ventures Closes $95 Million Impact Fund

U.K.-based Eka Ventures has been concentrating on this investment area since initiating its operations in April 2020.

The firm has successfully completed a final closing of its $95 million (£68 million) fund. Eka Ventures positions itself as the “largest impact-driven early-stage venture capital fund focused on the UK,” though this assertion remains unverified by TechCrunch.

Key Investors in Eka Ventures

The fund’s investor base includes prominent entities such as British Business Bank, BSC, Isomer, Guy’s and St Thomas’ Foundation, Planet First Partners, Draper Esprit, and Snowball.

Furthermore, the fund benefits from the backing of 24 entrepreneurs, with 12 being founders previously supported by Eka partners at either the fund or individual investment level.

Investment Focus and Strategy

Eka’s investment strategy centers on consumer technology companies operating within three core areas: sustainable consumption, consumer healthcare, and the “inclusive economy”.

The fund will primarily target U.K.-based companies, with individual investments ranging from £500,000 to £3 million.

The Eka Team’s Experience

Founders Jon Coker, Camilla Dolan, and Andrew Richardson bring substantial venture capital experience to Eka, having previously participated in VC deals involving companies like Gousto, Bloom & Wild, Peak, and Elder.

Prior to founding Eka, Jon Coker held a position at London-based VC firm MMC Ventures.

Prioritizing Measurable Impact

Jon Coker, a general partner at Eka, emphasized the firm’s commitment to impact: “Our investments are exclusively directed towards companies where we identify a demonstrable impact directly linked to their product or service.

As these companies expand, so too will their positive impact. We will not invest in ventures lacking this clear connection. We have communicated this commitment to all our investors, ensuring that impact delivery is a prerequisite for investment.

We assess companies by evaluating founder alignment – understanding their vision for building the company and the impact generated through their offerings. Following this assessment, we continuously measure the impact over time, and we are open to co-investing with funds that may not have a dedicated impact focus.”

Measuring Impact Through a Standardized Framework

When questioned about impact measurement, Coker explained: “We utilize the Impact Management Project framework, an initiative aimed at establishing an industry standard for measuring impact within venture capital.

This framework examines various dimensions to pinpoint the specific impact created by the company. For early-stage investments, we measure both the current impact of the product and progress towards future impact-generating projects. We collaborate with impact-focused LPs in the fund to refine this framework.”

Urban Jungle Insurance: An Example of Inclusive Impact

Camilla Dolan, also a general partner at Eka, highlighted Urban Jungle insurance as an early investment: “Urban Jungle exemplifies our focus on inclusivity by addressing a significant gap in the market – serving historically underserved segments.

They achieve this through underwriting based on behavioral characteristics rather than traditional demographic factors, a practice that excludes many potential customers. They are now launching a product specifically tailored for social housing residents, responding to numerous testimonials from this community.”

Scaling Impact-Driven Innovation

Dolan added: “We are dedicated to supporting the scaling of our portfolio companies and will leverage all available resources to help founders achieve their ambitious objectives.

We seek entrepreneurs who set a high standard for impact-driven innovation and are focused on fundamentally transforming or creating new market categories, much like Tesla has revolutionized the electric vehicle industry. Eka was established to support companies with this level of ambition.”

Industry Endorsements

Timo Boldt, founder of Gousto, stated: “Jon and Camilla represent the ideal investment partners a founder could hope for.

They provided Gousto with Series A funding in 2013 and have consistently been strong supporters. Their new venture, Eka, aligns perfectly with our own philosophy due to its emphasis on sustainability – a value we deeply share.”

British Business Bank Support

Ken Cooper, managing director, Venture Solutions, British Business Bank, commented: “The Bank’s Enterprise Capital Funds programme plays a crucial role in fostering a robust venture capital ecosystem in the U.K., reducing barriers to entry for emerging fund managers and those targeting underserved market areas.

Our £36 million commitment to Eka Ventures will empower them to support innovative and sustainable consumer technology businesses across the U.K.”