Giant Leap sets $50m target for second impact investment fund

Australia’s leading early-stage impact investment firm Giant Leap has set a target of raising $50m for its second fund.

The Giant Leap team from left: Will Richardson, Adam Milgrom, Rachel Yang and Charlie Macdonald.

Australia’s leading early-stage impact investment firm Giant Leap has set a target of raising $50m for its second fund, Giant Leap II, while also securing further investment from NRMA and clients of Evans & Partners.

The organisation has now raised over $35m, and managing partner Will Richardson said that a total fund size of $50m would give the firm’s second fund a size of more than triple its first.

The firm was the nation’s first venture capital fund dedicated to investing purely in impact start-ups when it was founded in 2016, and has made more than 20 investments to date.

Giant Leap is now looking to capitalise on a spark in interest towards impact investing, particularly amid climate tech and sustainability start-ups.

“We are now seeing huge interest from investors who want to join us in funding solutions to society’s most important challenges,” Mr Richardson said.

“For the first time, Giant Leap is seeing interest from institutional investors like the NRMA, which is another fantastic milestone for the impact investment trend in Australia.

“Driving towards a $50m fund seems ambitious, however, given the discussions we’re having with investors, we believe it’s achievable. These funds will allow us to expand alongside our portfolio companies and enable us to continue to support their growth.”

The firm’s second fund, Giant Leap II will continue the work of Giant Leap I, and will have a similar mandate.

It will invest in “exceptional, rapidly scalable businesses” that can deliver returns with deep social and environmental impact across three key themes: sustainable living, health and wellbeing and empowering people.

Ainsley Lee, head of investments at NRMA, said the company had been following the team since the first fund.

“The team have shown great discipline in the areas of impact investment combined with providing solid financial returns.

“Investing into Giant Leap II has allowed us to align our own beliefs at the NRMA and invest for environmental and social impact while supporting a fantastic team in delivering these goals.”

Kate Glazebook received funding from Giant Leap as part of its first fund for her de-biased hiring start-up Applied.

“Giant Leap invested in Applied three years ago and we couldn’t be more honoured to be part of their portfolio. They are among the most thoughtful investors we’ve come across,” she said.

“Their commitment to impact is real, and through their efforts we’ve not only been pushed to make Applied as good as it can be, but also had the opportunity to draw inspiration from the phenomenal founders in their network showing that you can do well by doing good.”