To evaluate whether a project aligns with our mission, investment thesis, and sustainability goals, we have developed a set of screening questions. These questions allow us to assess key aspects of a project and determine its alignment with our strategic objectives. The screening process helps us identify ventures that have the potential to generate positive impact while delivering attractive financial returns. The following are the screening questions we utilize:
1. Mission Alignment:
a. Does the project address a pressing social or environmental challenge that aligns with Salem Ventures’ mission and values?
b. Is the project in a sector or industry that reflects our mission and areas of focus?
c. Does the project have the potential to contribute to sustainable development and positive societal change?
2. Investment Thesis:
a. Does the project fit within our investment thesis, which outlines the specific sectors, themes, or geographies we target?
b. Does the project align with our long-term investment goals and strategic objectives?
c. Is there a strong rationale for why this project fits within our investment portfolio and adds value to our overall strategy?
3. Sustainability Goals of Founders:
a. Do the founders and management team demonstrate a clear commitment to sustainability and responsible business practices?
b. Has the project incorporated environmental, social, and governance (ESG) considerations into its core strategy and operations?
c. Are the founders actively pursuing sustainability initiatives and seeking to create a positive impact alongside financial success?
By asking these screening questions, we aim to ensure that the projects we consider for investment align with our mission, investment thesis, and the sustainability goals of the founders. It allows us to assess the potential impact, financial viability, and strategic fit of each opportunity. We believe that by investing in ventures that align with our values and objectives, we can drive positive change and create sustainable value for our stakeholders and society at large.
If the answers to the screening questions indicate that a project aligns with Salem Ventures’ mission, investment thesis, and sustainability goals, we will proceed with further due diligence and evaluation. This typically involves conducting in-depth analysis of the project's financials, market potential, competitive landscape, and impact potential. We will engage with the project's founders and management team to gain a deeper understanding of their vision, strategy, and execution plans. If the due diligence process confirms the project's viability and alignment with our objectives, we may consider moving forward with an investment.
On the other hand, if the screening questions reveal that a project does not align with our mission, investment thesis, or sustainability goals, we will respectfully decline to pursue further involvement. We believe in maintaining a focused and strategic investment approach that aligns with our values and objectives. By declining opportunities that do not meet our criteria, we can ensure that our resources and efforts are dedicated to projects that have the greatest potential for positive impact and financial success.
Furthermore, while we may not proceed with a particular project, we understand the importance of providing constructive feedback. If appropriate and when possible, we may offer feedback to the project's founders, providing insights on areas that may require further development or alignment with our investment criteria. This approach allows us to contribute to the broader ecosystem and support the growth and improvement of impactful ventures, even if they may not be a fit for Salem Ventures at the present time.