Frequently
Asked
Questions
What is venture capital
Venture capital (VC) is a form of private equity financing that provides funding to early-
stage, high-potential startups in exchange for equity. VC firms invest in innovative
companies with strong growth potential, helping them scale through capital, mentorship,
and industry connections.
What is sustainable investing
Sustainable investing integrates environmental, social, and governance (ESG) criteria
into investment decisions to generate long-term financial returns while creating positive
social and environmental impact. It encompasses approaches such as impact investing,
ESG integration, and responsible ownership.
What is impact investing
Impact investing is a strategy that directs capital toward businesses and initiatives that
actively address social and environmental challenges while generating financial returns.
At Collateral Good, we invest in visionary startups reshaping the food, fashion & textiles,
and packaging industries, ensuring that sustainability and profitability go hand in hand.
What is an impact fund
An impact fund is an investment vehicle that finances companies, projects, or initiatives
designed to generate measurable positive social and environmental outcomes alongside
financial returns. At Collateral Good, our impact funds invest in innovative startups that
drive positive change in food, fashion & textiles, packaging and the built environment.
What is a climate fund
A climate fund is an investment vehicle that directs capital toward solutions addressing
climate change, such as renewable energy, sustainable infrastructure, and carbon
reduction technologies. At Collateral Good, we support startups in food, fashion &
textiles, packaging and the built environment, that drive meaningful climate action while
delivering financial returns.
What is sustainable fashion
Sustainable fashion refers to clothing, accessories, and textiles that are designed,
produced, and consumed in ways that minimize environmental impact and promote
ethical practices. This includes using eco-friendly materials, reducing waste, ensuring fair
labor conditions, and embracing circular economy principles. At Collateral Good, we go
beyond individual products by tackling the entire supply chain—from sourcing and
production to distribution and recycling. By supporting startups that drive systemic
change, we aim to create scalable, high-impact solutions that redefine the industry from
the ground up.
What is sustainable textile
Sustainable textiles are materials produced with minimal environmental and social
impact, using eco-friendly processes, ethical labor practices, and resource-efficient
methods. This includes organic, recycled, or biodegradable fibers, as well as innovations
that reduce water, energy, and chemical use. At Collateral Good, we support companies
driving sustainability in the textile industry through circular solutions and responsible
production.
What is circular fashion?
Circular fashion is a sustainable approach to the fashion industry that prioritizes the
reuse, recycling, and repurposing of materials to extend the lifecycle of garments. Instead
of the traditional linear model of "make, use, dispose," circular fashion promotes designs
that are durable, repairable, and recyclable, minimizing waste and reducing
environmental impact. At Collateral Good, we support companies that are pioneering
circular fashion solutions, transforming the industry for a more sustainable future.
What is an impact report
An impact report is a comprehensive document that tracks and communicates the
environmental, social, and financial outcomes of an organization’s activities or
investments. It provides transparency into how an organization’s actions align with
sustainability goals and contribute to positive change. At Collateral Good, the impact
report provides an overview of sustainability practices and performance in accordance
with the Sustainable Finance Disclosure Regulation (SFDR) Article 9. It reflects our
commitment to integrating environmental, social, and governance (ESG) factors into our
investment decision-making processes, while aligning our strategies with sustainable
development objectives.
What is sustainable food
Sustainable food is produced in a way that minimizes environmental impact, supports fair
labor practices, and promotes animal welfare while ensuring long-term food security. It
prioritizes resource efficiency, reduces waste, and fosters biodiversity. At Collateral
Good, we invest in innovative food solutions that drive sustainability across the entire
supply chain.
What is cultivated meat
Cultivated meat, also known as lab-grown or cell-based meat, is real meat produced by
cultivating animal cells in a controlled environment without the need for traditional animal
farming. This innovative approach reduces the environmental impact of meat production
by lowering greenhouse gas emissions, land use, and water consumption. At Collateral
Good, we support pioneering solutions like cultivated meat that contribute to a more
sustainable and ethical food system.
SFDR Art. 9
The Sustainable Finance Disclosure Regulation (SFDR) Article 9 applies to financial
products (including venture capital funds) that have sustainability as their core objective.
Funds classified under Article 9 must demonstrate measurable environmental and social
impact while maintaining high transparency and accountability standards. At Collateral
Good, our investments align with these requirements, ensuring that our portfolio
companies drive meaningful and quantifiable positive change.
What is an ESG company
An ESG company is a business that prioritizes environmental, social, and governance
(ESG) factors in its operations and decision-making. This includes reducing its
environmental footprint, ensuring ethical labor practices, and maintaining strong corporate
governance. At Collateral Good, we invest in companies that embed ESG principles into
their core strategies, driving both sustainable impact and long-term value.
Meaning of track record
In venture capital, a track record refers to the historical performance of an investor or
fund, including past investments, returns, and successful exits. It demonstrates expertise
in identifying, supporting, and scaling high-potential startups.
What is circular economy
A circular economy is an economic model designed to minimize waste and maximize
resource efficiency by keeping materials and products in use for as long as possible. It
focuses on reducing waste, reusing materials, and recycling resources to create a
sustainable, closed-loop system. At Collateral Good, we invest in companies that
embrace circular economy principles, driving innovation in sustainable food, fashion, and
packaging solutions.