Spintop is in the business of making rapid change happen, fast. Technology, applied in smart ways, can accelerate the change we need to make happen to form a long-term sustainable future. The revolutionary entrepreneurs we invest in bring new and better ways of doing things, replacing what is there today for a better tomorrow.
Sustainability is key to building a long-term successful business. Therefore, sustainability is a core component of Spintop’s investment strategy.
Below is Spintop’s take on making sustainable transformational change happen by investments in innovative software-based technology.
“Improve the game” vs “change the game” businesses
Analyzing a potential investment case, it is important to consider whether the business uses technology to improve, automate and restructure within an existing framework, or uses technology to establish a completely new framework, “improve the game” vs “change the game”.
Both models can have a major sustainability impact. But, businesses providing a completely new way of doing things can have a major transformational effect by causing other stakeholders to also adhere to a completely new framework.
Apply software in smart ways to create leverage
Software comes with an enormous inherent potential to have leverage. Just a few lines of code, written in a smart way and applied in the right place, can cause major transformational change.
When making sustainable technology investments with high impact, it is key to use software to build leverage.
First step is to find the critical junctures in business processes and in the technology ecosystems, then as a second step apply software to make the most possible change happen from the juncture.
Speed forward before precision
Software-based business can grow fast when leverage happens. The whole idea behind venture capital investments is to allow new innovative businesses to grow faster by injecting capital to be invested in growth.
To maximize impact, speed is number one. Simple math says that there will be a much higher impact with double speed and 80% precision, than at regular speed and 95% precision. Rather improve precision as a second wave, with learnings that will make adjustments more targeted.
Measure and communicate results
At Spintop we measure sustainability performance metrics in exactly the same way as we track financial, business and operational metrics.
Before making an investment, we always conduct a full “Sustainability due diligence” according to a defined framework, exactly the same way as the financial, legal and technology due diligence.
When invested, the Spintop portfolio companies are required to measure and report quarterly on a set of sustainability metrics, alongside reporting on financial and operational metrics. The sustainability metrics are typically integrated into the reporting to the portfolio company boards and is also shared among portfolio companies with full transparency.
Just by measuring key metrics in a systematic way and communicating the results, things happen. Sustainability metrics become a discussion topic on company boards. Portfolio companies benchmark with their peers, set targets and share experiences to improve.
Learn and explore
We’re always eager to learn more and be inspired by others. If you want to know more about the work we do or have an interesting experience you want to share, please get in touch with a message on our LinkedIn!