Challenges of Measuring Impact: A Venture Capitalist’s Perspective For Umeda, the journey into impact investing has been one of grappling with complexities that venture capital alone could not address. His experiences with previous startups revealed a critical insight: profitability alone cannot capture the true value of innovation. “If you cannot measure it, you can’t manage it,” Umeda asserts. 36 In order to manage the impact of wellness, factors such as wellness literacy and the benefits of a vibrant community must be measured. This is exactly what SIIFIC is working to achieve to set the conditions for impact investing success. Before SIIFIC, Umeda had several experiences with medical start-ups, which were slow to start but he knew had potential. They were undervalued due to the lack of “sales performance” but, through surveys with physicians, they were able to gain the necessary funding to prove themselves financially. Within SIIFIC, Umeda is focused on IMM that has outcomes that benefit both society and the economy. He is trying to document where he went wrong. In his own words, he wants to “compile the ‘traps’ that impact novices are prone to, based on where I went wrong even when I was giving it my all. I hope to help newcomers navigate the field without stumbling.” 37 This challenge has led Umeda and SIIFIC to pioneer a new approach to impact due diligence (Impact DD), integrating systems thinking to uncover unseen connections and potential negative impacts. Unlike traditional VC due diligence, which focuses on financial metrics and market opportunities, Impact DD considers broader questions: What ripple effects might this investment have? Does it contribute to or disrupt systemic inequities? These reflections not only refine the fund’s strategy but also push the boundaries of what impact investing can achieve globally. The Human Side of System Change Beyond frameworks and KPIs, the SIIFIC’s greatest strength lies in its people— both the fund’s leadership and the entrepreneurs it supports. Reiri Miura believes passionately there is a need to foster a culture where impact investing is accessible to all. Her journey—from corporate strategy to studying shared value—highlights the interdisciplinary nature of system change. “Impact investing is our future,” Miura declares, underscoring the moral imperative driving the fund’s mission. 38
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Ten Years in the Making
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