Mission: Democratize Access to Capital
A.R.I.’s mission is to democratize access to capital for all types of early-stage founders, including women and other underrepresented groups.
Company founders are not served efficiently or equitably by the existing venture capital ecosystem.
Less than 5% of venture capital funding goes to women and other underrepresented groups, which make up approximately 70% of the U.S. population.
Vast wealth is being created in technology-enabled companies and sectors that A.R.I. invests in. Those that do not take part in this 4th industrial revolution will never be able to catch-up economically.
Given the current structure of the venture ecosystem, massive segments of the population, predominantly women and people of color, will be permanently disadvantaged.
Therefore, creating access to capital and wealth creation opportunities must be done now before irrevocable harm occurs and income inequality is made permanent.
Those that are not on the technology “fast train” will be left behind economically. A.R.I. seeks to provide access to capital for all types of founders of early-stage companies.
A.R.I. prioritizes diversity, equity, and inclusion (“DEI”) in our investment mandate and aims to democratize the availability of minimally dilutive capital and “do well while doing good” by unlocking the massive economic potential in underserved segments of the market.
We believe that the best idea should win but that can only occur if every idea is heard. We are committed to making that happen.
Founders and prospective borrowers can learn more here.
Prospective investors can learn more here.
Environmental, Social, and Governance (“ESG”) Overview
A.R.I. believes that our effective application of responsible investing and ESG investment principles will lead to better risk-adjusted investment performance, advance sustainable business practices, and generate positive societal impact with consideration for a broad set of stakeholders.
A.R.I. has many different types of stakeholders, including internal, external, primary, secondary, voluntary, and involuntary. Primary stakeholders include those who have a direct stake in A.R.I. and its success. Secondary stakeholders may be influential but have a representational, rather than direct, stake.
For any given investment, stakeholders may include, but are not limited to, the following representative groups:
- Employees of A.R.I.
- Investors in A.R.I. (i.e., Limited Partners)
- A.R.I.’s investment companies (i.e., borrowers)
- Equity investors in A.R.I.’s investment companies
- Customers of A.R.I.’s investment companies
- Vendors and service providers to A.R.I. and A.R.I.’s investment companies
- Community members (local, regional, national)
- Government agencies (local, regional, national)
- Non-profit organizations (local, regional, national)
- Community-based organizations (local, regional, national)
- “Mother Nature” (i.e., the physical environment)
Stakeholder Interests
A.R.I. invests responsibly by considering all material stakeholders and the impact that our investments will have on these stakeholders. A.R.I. seeks to promote the following interests, among others, of all our stakeholders through its investment and operating activities:
- Diversity, Equity, and Inclusion (“DEI”)
- Increased Economic Growth
- Human Rights & Equality
- Good Health & Well-Being
- Fair Regulatory Regimes
- Income Equality
- Access to Education
- Innovation
- Robust Corporate Governance
- Executive Accountability
- Fair & Safe Labor Practices
- Waste Reduction
- Reduced Toxic Emissions
- Clean Energy
- Improved Water Quality
- Conservation of Natural Resources
- Strong Supply Chain
Guiding Principles
A.R.I. recognizes that creating significant economic value and adhering to high moral values are not mutually exclusive. In fact, we believe that by prioritizing the systematic consideration of ESG risks and opportunities, we will perform deeper, more meaningful, analyses, make better-informed investment decisions, and ultimately produce superior risk-adjusted returns for our investors.
The following principles of stakeholder engagement, based on the work of Max Clarkson, guide A.R.I.’s approach to optimizing our Responsible Investing program:
- Acknowledge and actively monitor the concerns of all legitimate stakeholders, taking their interests into account in investment decision-making and operations.
- Listen to, and openly communicate with, stakeholders about their respective concerns and contributions.
- Adopt processes and modes of behavior that are sensitive to the concerns and capabilities of each stakeholder constituency.
- Recognize the interdependence of efforts and rewards among stakeholders, and attempt to achieve a fair distribution of benefits and burdens among them.
- Work cooperatively with stakeholders and other entities, both public and private, to ensure that risks and harmfulness arising from corporate activities are minimized and, where they cannot be avoided, appropriately compensated.
- Avoid altogether activities that might jeopardize inalienable human rights (i.e., the right to life).
- Acknowledge the potential conflicts between (a) A.R.I.s role as a corporate stakeholder, and (b) A.R.I.’s legal and moral responsibilities for the interests of all stakeholders. Such conflicts will be addressed through open communication, appropriate reporting, and incentive systems and, where necessary, third party review.
A.R.I. discloses its responsible investing policies and practices to promote transparency, build trust, and encourage wider adoption of best practices across the investment industry.
ESG Ratings
Every A.R.I. investment has an ESG Rating to assist our investment team in making informed underwriting decisions, effectively pricing risk, assessing and predicting changes in portfolio quality, and allowing for earlier response to emerging risks.
Accurate and timely ESG scoring is a vitally important component of A.R.I.s’ Enterprise Risk Management (“ERM”) program that helps to de-risk A.R.I.’s business as follows:
- Aligning Interests with Stakeholders
- Reducing Reputational Risk
- Regulating Portfolio Risk Exposures
- Augmenting Risk Monitoring
- Identifying Emerging Risks
- Enhancing Team Communication Regarding Investment Risk
- Improving Transparency of Performance Reporting
- Facilitating Well-Informed Decision Making
- Allowing for Robust Stress Testing
- Strengthening Governance
A.R.I.’s ESG Ratings incorporate a range of factors to estimate the strength of each investment from the perspective of being socially responsible, sustainable, and meeting the ESG requirements of A.R.I.’s stakeholders.
Partnership Opportunities
We know that we cannot achieve our goals without strong partnership and support from our stakeholders.
We are actively building relationships and directly engaging with those that want to move the needle with us.
Please email any of A.R.I.’s leadership team to learn more about our DEI and ESG initiatives and discuss how we can collaborate.