MISSION
A.R.I. is on a mission to level the playing field and make it easier for all talented early-stage founders to access capital, especially women and other underrepresented groups.
Unfortunately, the current venture capital ecosystem is neither efficient nor equitable for founders. Less than 3% of venture capital funding goes to underrepresented groups, even though they make up about 70% of the U.S. population.
This is a critical problem because technology-enabled companies and sectors are generating vast amounts of wealth. Those who don’t participate in this “fourth industrial revolution” will fall behind economically, creating a permanent disadvantage for women and people of color.
To prevent this harm and the perpetuation of income inequality, access to capital and wealth creation opportunities must be created now.
A.R.I. believes in prioritizing diversity, equity, and inclusion (DEI) in our investment mandate. We want to democratize the availability of minimally dilutive capital and unlock the huge economic potential of underserved markets.
Our goal is to create a level playing field for all founders and ensure that the best ideas win. We are committed to making that happen by providing access to capital and empowering all voices.
If you’re a founder or borrower, please click HERE to learn more.
If you’re a prospective investor, we invite you to learn more about our mission and investment opportunities HERE.
ENVIRONMENTAL, SOCIAL, & 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
A.R.I.’S 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.
• 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
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.