ImpactAlpha, December 5 – A social venture fund from New Zealand’s Akina Foundation, New Ground Capital, and Impact Ventures has closed with NZ$9 million ($6.2 million) in commitments.
The Impact Enterprise Fund began fundraising last year with a target of between NZ$10 million and $15 million (US$7 million and $10 million) to invest in domestic social businesses. Two organizations—the Tindall Foundation and St. John’s College Trust Board—seeded the fund. Commitments had grow to NZ$8 million by February, but the partners have now opted to close the fund after raising only NZ$1 million more since then.
Impact Enterprise Fund’s investment manager Chris Simcock cited a need for greater awareness about impact investing as a key fundraising challenge. “We [ran] into the old school way of thinking where people split philanthropy and investing and view them as two distinct options rather than being [able] to combine the two,” he told New Zealand’s Scoop news outlet.
The fund has made one investment to date—a digital platform called Melon Health that helps patients manage health needs and goals. Impact Enterprise Fund invested NZ$1 million as part of the venture’s multi-million dollar Series B round in November.