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Multidimensional problems and how they fit in the Venture Capital Framework
- Venture Capital Framework emphasizes solutions that solve large economic problems in a scalable manner.
- VCs can prefer solutions with a unidimensional problem, which can add more complexity to solutions tackling multidimensional problems.
- New social-environmental-economic development frameworks, such as Sustainable Development Goals (SDGs) and Impact Reporting and Investing Standards (IRIS+), have expanded traditional metrics.
- 56% of allocator respondents allocate some part of their assets to impact investment strategies.
- Entrepreneurs should investigate investors' willingness to consider long-term impact beyond investment areas when pursuing ventures with high potential for multidimensional problems.
- Ultimatley, entrepreneurs must be able to frame their ventures' main economic trends that address the solution's various stakeholder expectations.
- VCs are generally still approaching problems conveniently with some exceptions for multidimensional approaches.
- Entrepreneur's should consider emphasizing the part of the problem-solution they want to present to VCs without compromising its long-term mission and impact.
- Multidimensional problems, such as agricultural plagues like the nematodes, benefit not only the consumers but also grantmakers, university tech transfer agencies, and local and national development banks.
- However, VC's tend to prefer unidimensional problems over multidimensional ones, which includes more complexity and weigh VCs down with more risk.
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