Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Axios/Lazaro Gamio

Kapor Capital, a venture capital firm that seeks to invest in startups with a positive societal impact, says its returns are just as good as more traditional seed funds of similar size.

Why it matters: The firm says it wants to dispel the perception that so-called “social impact investing” is just charity and can’t lead to meaningful financial returns.

By the numbers:

  • Kapor says it invested about $60 million across 102 companies between 2011 and 2017. Investments before 2011, including Uber and Twilio were not included in the analysis.
  • IRR (net of fees): 29.02%, which the firm says is in the top quartile according to Pitchbook and Cambridge Associates benchmarks.
  • TVPI: 3.0, which it says also puts it in the top quartile.

Yes, but: The firm’s founders, Mitch Kapor and Freada Kapor Klein, tell Axios that because they don’t subscribe to common VC philosophies like fast growth at all costs, conventional performance metrics don’t quite fit their portfolio.

  • “We also know that for many of our companies that are very focused on impact… it’s many, many times more difficult to raise follow-on capital,” says Kapor Klein, adding that founders from underrepresented groups also face greater challenges like sexual harassment during fundraising. Sixty of the firm's investments (59%) have a founder who identifies as a woman and/or an underrepresented person of color.
  • And to be fair, Kapor Capital is more akin to a family office at the moment, giving it the luxury to pace itself without outside investor pressures.

The bigger picture: “The conventional view is that most businesses are impact neutral and some businesses are positive—but we think that’s inaccurate,” says Kapor.

  • Even if a company’s business doesn’t have red flags, how it treats its employees and local community factors into its overall impact, he explains.
  • “There are many other [companies] that we’ve turned down that the technology is perfectly fine, but it’s not clear who is going to win or lose,” adds Kapor Klein. “If this company is successful and the technology is deployed, will it be gap widening or closing?” Ultimately, if the it's not clear that it could have a positive impact, the firm chooses not to take the risk.

As for Uber, which Kapor Capital backed in 2009, the duo declined to share just yet what it plans to do with the returns.

Go deeper: Tech is “flunking” the diversity test, says activist and venture capitalist Freada Kapor Klein

Go deeper

CPAC Republicans choose conservatism over constituents

Rep. Matt Gaetz. Photo: Elijah Nouvelage/Bloomberg via Getty Images

CPAC proved such a draw, conservative Republicans chose the conference over their constituents.

Why it matters: More than a dozen House Republicans voted by proxy on the $1.9 trillion COVID-19 relief bill in Washington so they could speak at the Conservative Political Action Conference, known as CPAC. And Sen. Ted Cruz skipped an Air Force One flight as President Biden flew to Cruz's hometown of Houston to survey storm damage.

Border Democrat warns Biden about immigrant fallout

Henry Cuellar (right). Photo: Tom Williams/CQ-Roll Call Inc. via Getty Images

A Democratic lawmaker representing a border district warned the Biden administration against easing up too much on unauthorized immigrants, citing their impact on his constituents, local hospitals and their potential to spread the coronavirus.

Why it matters: Rep. Henry Cuellar (D-Texas) told Axios he supports President Biden. But the moderate said he sees the downsides of efforts to placate pro-immigrant groups, an effort that threatens to blow up on the administration.

In CPAC speech, Trump says he won't start a 3rd party

Trump at CPAC on Feb. 28 in Orlando, Florida. Photo: Courtesy of C-SPAN.

In his first public speech since leaving office, former President Trump told the audience at the Conservative Political Action Conference (CPAC) that he would not start a third party because "we have the Republican party."

Why it matters: The former president aims to cement himself as Republicans' "presumptive 2024 nominee" as his top contenders — including former members of his administration — face the challenge of running against the GOP's most popular politician.