Salim Ismail

Every founder we invest in signs an Impact Pact. Written into our investment documents. Legally binding. Not as marketing. As requirement. Most impact funds talk about doing good. We structure it into every deal. The concept is simple: paying it forward. We share access to capital with founders the traditional VC ecosystem overlooks. In return, we expect our founders to pay it forward in three areas: Wealth sharing: How are you distributing ownership beyond the executive team? In 2024, our portfolio generated over $400 million in wealth creation—$342 million for BIPOC and women founders, plus $65 million in employee equity. Supplier diversity: How much spending goes to companies founded by people of color or women? Our portfolio directed $9 million to diverse suppliers last year—30% BIPOC-owned, 35% women-owned. Diversity goals: Not quotas. Intentionality. 92% of our founders are BIPOC. 81% of their employees are BIPOC. 77% of the $39.7 million in compensation went to BIPOC team members. Here's what makes this different: It's legally binding. Not in a deck. In the documents we both sign. It's specific. No vague language. Measurable commitments. It compounds. Year over year, these numbers grow because the structure demands it. The question I always get: "Does this work? Or is it virtue signaling?" Fair question. Here's the data: Our portfolio created 436 jobs in 2024 — a 48% compound annual growth rate since 2021. These aren't just any jobs. They're pathways to wealth in communities excluded from venture-backed opportunity. The paying-it-forward model creates a multiplier effect. When our founders prioritize diverse suppliers, those suppliers gain revenue and credibility that help them win more business. When our founders build inclusive teams, they tap talent pools competitors ignore. When our founders share equity broadly, retention improves and alignment deepens. Each company becomes a node in a network of shared access—not just a single investment, but a catalyst for ecosystem-wide change. Why structure impact this way? Because impact that isn't measured doesn't compound. When you invest in a founder, you're not just buying equity in one company. You're investing in their commitment to pay it forward — through the vendors they choose, the teams they build, the wealth they share. The Impact Pact ensures impact is intentional, measurable, and compounding. Returns are not concessionary. Our current Fund I: 34.8% gross IRR. 1.75x return multiple. More than two times above the median for comparable VC funds. The Impact Pact isn't altruism. It's a structured method for paying forward the access we provide and capturing the returns that come when overlooked founders get their shot. Fund II is open with the Impact Pact built into every deal. Same structure. Same accountability. Same thesis: that paying it forward isn't charity. It's alpha. If you're an LP who believes in compounding returns and compounding impact, let's talk.

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Big News for European Deep Tech Innovation! Mundi Ventures just closed €750M for Kembara Growth Fund dedicated to European deep tech solutions. This is a game-changer for European growth stage startups driving innovation in AI, robotics, clean energy, and sustainability. Europe is a hotbed for cutting-edge technology and climate action. Funds like Kembara are crucial for scaling these innovations and positioning Europe as a global leader in deep tech. #DeepTech #ClimateTech #EuropeanInnovation #VentureCapital #Growth #Sustainability Javier Santiso Yann de Vries

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🌍 Big Updates from The Venture Studio Forum (VSF): 🚀 We’ve launched our new website: Explore our refreshed home at venturestudioforum.org. 🤘 All Access, No Barriers: We’ve removed all paywalls — every Member now has full access to every benefit. This ensures our ecosystem continues to innovate and mature as a well-understood, sought-after asset class. 🎁 Member Gifts and Sponsorships Launched: We’ve rolled out a range of Sponsorship opportunities to sustain and scale this mission — including a Founding Sponsor option for our current Members (available for a limited time). Want to get involved? I’ll put all the links in the comments! #VentureStudios #Innovation #Ecosystem #VSF

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Innovation in the "Femtech" Space: How Women-Led Startups are Solving Neglected Health Issues. View My Portfolio. For decades, significant aspects of women's health were sidelined as "niche" concerns. No longer. The rise of Femtech—technology-driven health solutions focused on women's needs—is a powerful market correction, and it's being led by women. At V For Vibes, we are inspired by the founders who are turning personal frustration into global innovation. They are building companies that address long-ignored areas, from reproductive health and menstrual care to menopause and sexual wellness. Why does this matter for business? Market Opportunity: Women make 80% of healthcare decisions. This isn't a niche; it's a powerhouse economic engine. Diverse Leadership: Women-led startups bring essential lived experience to the table, creating products that truly resonate. Investment in Impact: Supporting Femtech isn't just good ethics; it's smart economics, funding solutions for half the world's population. The success of Femtech proves that when we diversify leadership, we unlock innovation that changes lives and dominates new markets. #Femtech #WomenInTech #WomenFounders #HealthTech #Innovation #SexualWellness #InvestInWomen #BusinessStrategy #Startups #VForVibes #DigitalHealth

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“Hey DC — I’m raising a pre-seed at a $50M cap. Interested???” I ought to ignore the cold outreach like everyone else, but I can't help myself from replying, “Not at a $50M valuation!” “But we did a discounted cash flow analysis and calculated the valuation at $50,874,392.66.” DCF is the perfect answer to the question: tell me you know nothing about startups without telling me how you’re going to fail. But how should this founder determine the valuation of his startup? There’s a lot of methods to value startups. DCF. Berkus Method. Discount off next round. Cost to duplicate. Scorecard. Comparable transactions. Blah blah blah. None of them work. Valuation is not a calculation. It’s a negotiation. The only method that works is what I'll call the Palter Valuation Process. It's a process rather than a formula, with the following simple steps: 1. Determine your stage. Honestly. Based on customer traction rather than wishful thinking. Is this raise a friends & family & network (no traction yet), pre-seed (initial sales), seed ($100K+ ARR), or Series A ($4M+ ARR)? 2. Find typical valuations for your stage, sector, and geography. Look at both the median and ranges. Use the incredibly helpful data from Carta (thank you Peter Walker and Carta) plus whatever you can find from Pitchbook, Crunchbase, investment banks, and VCs that follow your sector. 3. Adjust within the ranges based on your traction and risk factors. 4. Check with a few trusted advisors who invest regularly at your stage to see if they think your proposed valuation will be attractive to investors in their network. 5. Begin pitching to potential lead investors. Negotiate the valuation and other investment terms. 6. See if the valuation attracts follow-on investors to fill the round. If not, renegotiate with the lead investor and other investors to set the final valuation. Keep in mind that valuation is just one piece the investment puzzle. Liquidation preference frequently determines how much (if anything) founders and employees get in an exit and is arguably more important than valuation. Investment vehicle (preferred shares, common shares, SAFE, convertible note) make a big difference to investors and will affect the valuation we find attractive. Full details on the Palter Valuation Process in the following article: http://bit.ly/3UAIwMw

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