Purpose Ventures

Jul 19, 2020

Erroll Jones “When we started, we had to explain to investors that you can have profit and purpose together,” says Patrick Sheehan,  “We don’t have to explain that today.”  As a founder of ETF Partners - a VC fund focused on backing businesses that deliver “sustainability through Innovation” - Patrick Sheehan has witnessed at least the beginnings of a sea change in investor attitudes. Over the past year or so, global warming has been rebranded as a climate emergency. And this year, the world is struggling with a more immediate crisis in the shape of Covid-19. Against this backdrop, investors -  some of them at least - are looking for technology companies that can not only solve the requisite “big problems,” but also have a real environmental, or societal impact in a world that seems increasingly fraught with risk. I spoke to Sheehan earlier this month as ETF announced that its third fund had secured £167 million from institutions and other investors. And as he sees it, the Covid-19 crisis has helped focus minds on the importance of solutions that will deliver sustainable prosperity. “Covid has had two effects,” he says. “On the one hand, it has accelerated the adoption of digital technology. At the same time, it has also demonstrated that crises happen.” That has, in turn, focused minds on green issues. “I am really encouraged by the trend,” adds Sheehan. “Today sustainability is on the agenda of every investor.”  You could probably also argue that there is an even more direct link between the Covid pandemic and a climate crisis that is waiting in the wings. Covid has encouraged all of us to think about more deeply about the world we are building for tomorrow while also posing a huge economic problem. The imperative now is to preserve as many jobs as possible in the face of an inevitable global downturn. That involves bailing out industries and creating jobs programs. Here in the UK, the government has announced an investment in green projects - insulating homes, fitting more efficient heating - that are specifically designed to create jobs. Thus, Covid has put the environmental agenda front and center stage in terms of economic policy. It's a similar story elsewhere in Europe. For instance, France has tied support for Air France to emissions cuts. Most Popular In: Entrepreneurs