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A further tailwind for increased investment into purpose-driven tech companies comes from the institutional investor layer and LPs. LPs are increasingly focused on environmental, social and governance ('ESG') considerations when deploying capital. In fact, 45% of LP respondents to the survey stated that they require their GPs (i.e. the fund managers they have invested in) to report on the social and environmental impact of their portfolio, while a further 41% are considering implementing this requirement. Established fund managers are also more likely to be required this type of reporting from their LPs in the future with 47% stating this as a requirement and 53% considering this practice. As such, it is becoming an increasingly important part of the LP mandate for VCs in Europe.

Do you require GPs to report on social and environmental impact?

Dataset: All fund managers
LP respondents only. The responses to this question have been aggregated based on how respondents answered the following question: "What type of fund managers do you normally invest in?"