A new report from NGP Capital shows that startups that are purpose-driven are less likely to shut shop, more likely to raise Series A rounds, but are less likely to exit than startups that are not SDG relevant.
NGP’s analysis included nearly 3,000 startups in Europe, the US, and Israel, all founded since 2015 and with one equity funding round behind them. They discovered that only 2.6 percent of SDG relevant startups — i.e. ones aligned to one or more of the UN’s Sustainable Development Goals — failed since 2015, compared to 4.5 percent of non-SDG focused ones.
“Even in the current investment market, our analysis shows that climate change and other global issues are getting the attention of the world’s entrepreneurs and investors,” said NGP Capital’s managing partner Bo Ilsoe. “SDG relevant startups are proving that they have the potential to reshape the world’s economy in the next decade and offer investors robust investment opportunities in the current economic climate.”
Would you like to write the first comment?
Login to post comments