Purpose driven startups are less likely to fail and attract 2-3x more funding than non purpose driven startups, a new report reveals.
The topic of environmental, social, and governance (ESG) within venture capital has gained significant momentum over the last couple of years. Driven by a range of external and internal factors as well as shifting global attitudes, this report will look at the impact the ESG movement has had on the fundraising landscape.
To achieve this, we analyzed over 2,292 companies and measured their ability to raise funds, based on their relevance to UN Sustainable Development Goals (SDGs) which is a broader framework within ESG.
SDGs were adopted by the UN in 2015, and form 17 interlinked goals which have been designed to be a blueprint to create a better and more sustainable future for the World. We chose SDGs as the basis of our analysis as they offer a universal, global standard for measuring and categorizing ESGs.
In our latest report, we highlight the most commonly cited Sustainable Development Goals (SDGs) and reveal how funding trends have evolved for purpose-driven startups since 2015.