Two years after establishing its venture arm, JFFVentures, a nonprofit dedicated to helping low-wage workers attain upward mobility, has announced the launch of its second fund, JFFVentures Fund II. The new fund aims to raise $50 million, with $15 million already secured from investors such as the Autodesk Foundation, the Workday Foundation, and the American Council on Education.

Impact-Focused VC Funds on the Rise

JFFVentures Fund II is part of a growing trend of impact-focused venture capital funds in the US. These funds aim to drive social, economic, and environmental change while generating investment returns. Other notable impact-focused VC funds include Collaborative Fund, Third Sphere, and the nonprofit Acumen Fund.

The Private Impact Market Continues to Grow

According to the Global Impact Investing Network (GIIN), the private impact market has grown significantly over the past few years. At the end of 2021, the private impact market reached approximately $1.2 trillion, a 63% increase since 2019.

Challenges Facing Impact-Focused VC Funds

While the growth of the private impact market is encouraging, impact-focused VC funds face unique challenges. One of the main difficulties is measuring the real-world impacts or progress of an investment target. Impact funds have historically offered lower returns compared to traditional startup investment vehicles.

JFFVentures Fund II’s Approach to Impact Investing

JFFVentures Fund II takes a different approach to impact investing by focusing on startups that aim to solve social and environmental challenges. The fund’s portfolio companies are expected to demonstrate measurable outcomes towards growth, making it easier for investors to assess their potential returns.

Reserving the Right to Invest Globally

One of the key differences between JFFVentures Fund II and its predecessor is the right to invest up to 20% of the fund in startups based outside of the US. This gives the VC an additional lever to boost returns by diversifying its portfolio.

Setting a New Standard for Nonprofit-Private Partnerships

JFFVentures’ goal is to become the gold standard for nonprofit-private partnerships that can amplify innovation and impact while unlocking value for entrepreneurs, investors, and beneficiaries alike. The fund’s founders aspire to be the first stop for entrepreneurs building at the intersection of innovation and impact.

About JFFVentures Fund II

JFFVentures Fund II is a venture capital fund focused on investing in startups that aim to solve social and environmental challenges. With a $50 million target, the fund is expected to generate significant returns while driving positive change.