In the latest development, Connected Asset Management has announced the acquisition of London-based early-stage tech for good VC company Bethnal Green Ventures (BGV).
BGV will continue to work as an independent firm as it scales its VC investment operation and will work under the Connected group umbrella.
Why this acquisition?
Darren Agomber, founder and MD, Connected Asset Management, aims to build a new breed of impact fund that offers a solution for its DC pension provider clients to engage in impact investing.
This will allow pension funds to take advantage of the high-growth opportunity to invest in British tech startups with clear and measurable social and environmental impact.
Further, Connected also plans to deliver investment solutions to deploy capital towards assets including, microfinance, social housing, and clean energy.
BGV: What you need to know
Founded by Paul Millers in 2012, Bethnal Green Ventures (BGV) is London-based early-stage tech for good VC, investing in ambitious founders using technology to create a positive impact at scale.
Since 2012, the VC has invested in 141 companies building solutions to social and environmental challenges, positively impacting the lives of 17M people.
Connected Asset Management: What you need to know
Founded in 2019 by Darren Agombar, Connected Asset Management is a B Corp certified and FCA-regulated impact asset management group.
Darren has decades of experience operating at a high level in global financial markets, developing investment strategies for leading DC pension funds, and is an expert in behavioural economics and impact investment.
Connected Asset Management announced last year it had become one of the UK’s first FCA-regulated positive impact investors to certify as a B Corporation dedicated to using business as a force for good. BGV was the UK’s first VC firm to become a B Corp in 2015.
Founders comments
Darren said: “We are delighted to announce our partnership with the brilliant BGV. Venture capital and growth equity is transforming society and building the high-growth companies of the future. By bringing BGV into the Connected group, pension savers can now also benefit from the high returns that investing in these firms can offer over the longer term whilst helping to deliver positive social and environmental change.
“Despite the prospect of progressive regulatory reform to allow DC pension funds to invest in this type of illiquid investment, it is still something very few providers have managed to do, preferring to invest in listed and passive investments that are cheaper to manage.
“We hope by taking the lead and demonstrating that investing in companies with good corporate governance, positive climate change principles, and social purpose, is not just a question of values, it is evidence of doing good business and a source of untapped financial returns.”
Paul Miller, BGV CEO and Managing Partner said: “It’s an extremely exciting move for BGV to be joining the Connected group. We believe the most successful businesses of the future will be tech for good and it’s fantastic that Darren and Connected share this vision.
“By creating better solutions to big social and environmental challenges, tech for good businesses tap into huge market opportunities, benefitting people and the planet at scale while also making fantastic returns. More and more investors are recognising this opportunity, especially in London, which is the top global hub for tech for good with VC investments into the space increasing exponentially in recent years.
“Over ten years ago we noticed the increasing demand from talented and ambitious founders to use their skills to tackle real problems at scale. We’ve since become the go-to early-stage investor for these people. Our strategic partnership with Connected is the perfect home for us to accelerate our mission even further to be the world’s best source of inspiration, investment, and support for founders building technology ventures that will improve millions of lives.”