Our Theory of Change
Describing Our Theory of Change
If we can co-create a small handful of high quality Sustainable Impact Startups (SIS) every year with the next generation of founders co-building in the trenches with founders who have already built multi-billion dollar startups and provide the capital required;
Assuming enough future follow-on investors seeking blended impact returns and founders accepting the Art's & Crafts Standard Deal terms;
Then we can expect Arts & Crafts to have a portfolio of capital efficient and profitable Sustainable Impact Startups that drives outsized positive social and environmental change in a highly desirable and repeatable unit economical model for other founders and investors to adopt and scale;
Which will contribute to systemic change that increases the (1) total Assets Under Management allocated for early stage Sustainable Impact Companies, (2) the total amount of Sustainable Impact Startups that receive early stage funding and (3) the probability of success for Sustainable Impact Startups achieving profitability to secure delivering long term transformative impact;
Ultimately becoming one of the most effective and efficient causal strategies towards achieving global peace and prosperity in our lifetimes as defined by the United Nation's Sustainable Development Agenda.
Measuring Our Theory of Change
We measure our progress and define success from our Theory of Change below:
Impact Goal
- Total Assets Under Management (AUM) allocated for early stage Sustainable Impact Startup funding
- Number of Sustainable Impact Startups receiving early stage funding
- Number of Sustainable Impact Startups that become profitable after receiving early stage funding
- Shift of consumer preference towards Sustainable Impact Startups
Outcomes
- Total impact delivered across all Arts & Craft's portfolio companies
- Average reach of people impacted in Arts & Craft's portfolio companies
- Average cost-to-impact efficiency gain over status quo interventions in Arts & Craft's portfolio companies
- Average B-Lab sustainability score of Arts & Craft's portfolio companies
- Number of companies becoming profitable in Arts & Craft's portfolio companies
- Blended investor IRR of Arts & Craft's portfolio companies
Outputs
- Number of Sustainable Impact Startups (SIS) we co-create
- Reach of our open-sourced tools, benchmarks and thought leadership on building Sustainable Impact Startups (SIS) to the startup ecosystem
Input
- Total Assets Under Management (AUM) at Arts & Crafts
- Team working at Arts & Crafts
- Founders applying to co-create with Arts & Crafts
- Community ecosystem at Arts & Crafts