Inhalt des Dokuments
Increasing the social, economic and environmental value generation from new ventures*
*[addressing every and any kind of new
venture] (see as well: www.startupimpactbenchmark.org )
Measuring sustainability value generation:
The research team is currently developing a sequence of 4 consecutive, transparent and independent measurement tools, adapted to the development stages of new ventures. An initial standardized Global Sustainability Impact Score [“GSI Score”] for early stage ventures is refined for later-stage ventures into a Global Sustainability Impact Value in Euro [“GSI Value”], expressing the value that has been generated by the venture in the categories social, economic and environmental value in monetary terms.
Comparing sustainability value generation:
500+ start-ups will provide data once a year until approx. year 7 of a venture and can compare themselves against the top performing new ventures, with a focus on Europe and the United States [other startups are welcome]. Each participating venture receives a detailed report, showing what the most successful startups (top 15%) do differently in their business model and key success criteria compared to the own venture. See sample output here  [note: measurement and tools are in development].
Predicting sustainability value
The GSI Score and GSI Value (overall four consecutive indicators that use self-, expert- and crowd-evaluation methods), are tested for their predication quality, by comparing their initial estimation of sustainability impact with later stage performance. Using the indicators with the highest prediction quality provides extremely relevant information for accelerators, investors, policy makers and startups who want to achieve high sustainability impact.
Co-development and customer centered product
The benchmark will "go live" in July 2017. Startups may sign up already (see below) as well as interested stakeholders. The research team explicitly collaborates during the development with any interested individual and is happy to share tools and thoughts in order to assure a lean, agile and customer centred development process.
Why should my startup sign up to participate in the benchmark?
- Receive a TU Berlin CfE certified Sustainability Impact Score and Sustainability Impact Value
- Receive a personalized report which success variables the top 15% ventures with the highest impact scores do differently than you
- Communicate to investors and customers if you score high on the sustainability impact score
- Communicate to consumers in monetary terms the sustainability value that your startup has generated
- Receive information for your team how to imrove your sustainability impact
- Track how you perform over time (yearly benchmark)
- Compare yourself to “the best” startups out of >500 startups
What kind or startup should participate?
This benchmark explicitly invites any kind of startup to participate, even if it did not see sustainability as a focus so far. It motivates any kind of ventures to evaluate sustainability impact whether sustainability relevant, sustainability informed or sustainability driven (Jay and Gerard, 2015 )
Can we predict venture success?
Longitudinal studies have indicated that venture capitalists have difficulties "outperforming" the market. So how could this study predict future sustainability impact? Whereas there are proven aspects that positively influence the likelyhood of success, such as founding team size, team members and the existence of patents, the approach taken here is different. The focus is on "how large the sustainability impact is likely to be", if the venture scales. This provides scientifically proven information on the "sustainability potential" of a given portfolio of ventures.
What is the value added for incubators and accelerators?
Often accelerators and incubators that explicitly want to foster sustainable oriented new ventures, have difficulties knowing what kind of business models are likely to provide a high sustainability impact. Should these be ventures focussing primarialy on sustainability, with business models that may scale a bit less, or even businesses that only see sustainability as a side aspect, but scale very well? The benchmark provides a series of early stage indicators, that are tested for their prediction quality. These indicators are extremely beneficial to decide which kind of ventures should be admitted into accelerators and incubators, as they have been tested for their prediction quality.
What is the value added for politicians?
- The benchmark contributes to clarifying what kind of ventures are likely to achieve high sustainability impact, which provides the basis for more efficient use of governmental growth programs and new ventures support.
- The GSI value, measuring social, environmental and economic value creation in monetary terms has clearly downsides (the tranfer into monetary terms needs some "estimation"). But is provides as well the basis to compare e.g. the impact of large organizations vs. new ventures, helping us to understand where and how we should be invest our resources in order to achieve a high sustainability impact.
Why should investors be interested?
The GSI score and GSI value help predicting future sustainability impact in early stages of a new venture. Impact investors but as well investors investing in early stage ventures receive a clear indication, which ventures are likely to achieve a high futures sustainability impact.
How does the benchmark differ from existing studies?
- Existing sustainability measurement tools are valuable. But life cycle assessments and similar valuable tools are simply too complex in early stages of a venture, where business models, products and customers change on a regular basis, and new ventures do not have the time and resources to invest in detailed measurement.
- This benchmark closes this gap, by providing more simple measurement approaches, that become more complex in later stages, when more recources are available and more stability exists.
- It is in early stages, including initial grwoth stages, when new ventures need financial support. It is exactly the gap that the sequences of GSI indiciators and GSI Scores from thhis benmark closes.
What does self, expert and crowd evaluation mean?
- Scientific studies have shown that self indication of success factors and success are very questionable.
- This research makes use of expert ratings. Based on a carefully designed sequence of descriptions (early stage) and measurements (later stage), experts compare the impact between ventures from an independent, neutral perspective.
- This research uses as well a crowd evaluation, as in order to receive the own benchmark results, other startups in an adjacent field have to be evaluated on the quality of their measurements and their sustainability impact.
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