Cleantech impact investment fund to launch in Idaho

A new investment fund focusing on life sciences, health and clean technology is preparing to launch in the Pacific Northwest, including Idaho.

The VectorPoint Ventures Impact Fund is intended as a regionally focused purpose-driven impact investment fund to attract more capital to Idaho, said Jolene Anderson, managing director, based on Boise. The goal is $2 million at first and hopefully $25 million for the life of the fund, to allow it to make follow-on investments, she said.

“There are dozens of potentially great technology and innovation-driven seed stage to early-stage life sciences and health and clean technology impact investing opportunities in the greater Northwest region that are or will be ready for equity capital, human capital and other help to accelerate their growth and position them for potential attractive investor exits in the next few years,” Anderson said. “There is a funding gap in these high-level sectors that has opened up a great opportunity for investors over the next few years.”

What is impact investing?

“Impact investing is an investment approach intentionally seeking to create a financial return and social and/or environmental impact that is actively measured,” Anderson said. Both life sciences and health and clean technology represent high-level sector areas under this umbrella, she said.

Examples of life science and health sectors include medical devices, health information technology, diagnostics, therapeutics, medical services, consumer wellness, wearables, personalized medicine and innovative food solutions, Anderson said.

Examples of clean tech sectors include energy and resource efficiency, sustainable agriculture, water technologies, battery technology, energy storage, smart grid, advanced materials, advanced transportation and green manufacturing. For instance, Idaho startup Joule Case, a stackable energy storage system intended to replace gas generators, could have been helped by the fund in its earlier stages, Anderson said.

Clean water services, healthier junk food and sustainable consumer goods were recently listed by Inc. as part of its Best Industries of 2020 report.

Working with others

The fund will include technology transfer.

“We will actively work with universities and research facilities to assist them in commercializing companies that have the potential of making significant social and environmental impact and the capacity to be high-growth companies,” said Anderson, who has been working with John Williamson, director of the COBE Funding Accelerator in the College of Business and Economics at Boise State University, partnering with VentureCapital.org.

“I’ve worked closely with Jolene over the years and feel her new fund will be a valuable resource for Idaho companies,” said Karen Appelgren, vice president and director of the business resource center at Zions Bank in Boise, in an email message. “Entrepreneurs need a variety of funding options because their business models may vary.”

While Zions offers Small Business Administration loans, the bank’s clients can also be a good fit for investor capital, Appelgren said. “Seeking investor funding can be a complex process that goes far beyond what you see in shows like Shark Tank, and it’s important to understand the due diligence process.”

Moreover, working with the fund’s managers can help beyond money, Appelgren said.

“Strategic guidance can make the difference between life and death for early ventures, so it’s critical for business owners to look for more than just money when seeking investor capital,” she said. “They should look for industry knowledge and connections, a shared vision and a track record of experience helping companies reach a successful exit.”

The new fund is likely to be able to provide that, Appelgren said.

“The team at VectorPoint Impact Fund has the complementary skill sets to provide strategic guidance to companies, and I’m pleased to see their ‘advise and mentor before and after investing’ model,” she said. “It’s clear the fund recognizes the value of mentoring and has a team with experience taking companies to a successful exit. I’ve seen Jolene provide direction to companies who are now highly successful, and it’s a good omen for the companies her fund will invest in.”