As a specialist fund manager dedicated to impact investment, we use an impact-driven approach to create returns for both investors and society as a whole. Each of our portfolio companies represents a strong lock step, which is a strong alignment between the company business and impact drivers.

5 Dimensions of Impact

Understanding and optimizing the impact of our investments is a critical part of our strategy. Our impact practice incorporates the emerging consensus around impact management and measurement as developed by the Impact Management Project.We use the IMP’s rational and language in our impact assessments and reporting framework.

Based on performance data across the five dimensions, we ultimately classify an enterprise’s impact into one of three broad categories: Avoids harm (“A”), Benefits stakeholders (“B”) and Contributes to solutions (“C”). Bridges Israel is entirely dedicated to ‘B’ and ‘C’ investments with a strong preference to invest in C companies and identify impact enhancement opportunities that can shift Bs to Cs.

In all our investments we are striving towards either (or both) significant scale and depth of influence and are also considering our contribution as investors.

For each investment, we will:

 

  • Articulate an impact investment thesis in the form of a Theory of Change
  • Assess the core effect across the five impact dimensions
  • Assign measurable, material and practical impact performance metrics (KPIs) to track and manage impact using an Impact Scorecard. We will strive to measure actual outcomes – the effects as experienced by stakeholders, and understand in details who is being affected, what is the scale and depth of influence and what is the investment net contribution to the effect in comparison with existing alternatives.
  • Consider of the interests of all affected stakeholders
  • Articulate limitations, risks and uncertainties related to the investment’s impact thesis and agree on mitigation measures.

See our impact in our latest impact report