Benefit Corporations Take Capital Campaigns to New Levels—and New Goals for Social Good
Ripple Foods, a dairy-free manufacturer start-up founded by Neil Renninger and Adam Lowry, recently completed a Series C funding round. This puts the company in the ranks of other innovation-minded benefit corporations that have raised more than $100 million in venture capital, including AltSchool (K-12 education) and Lemonade (insurance brokerage).
All of these projects, and the many other benefit corporations raising capital from venture investors, are focused on using that capital to scale businesses that will have outsized positive impacts on the world. Alternatives to milk have the potential to reduce the global warming to which cattle contribute, new educations models can address the inequality that threatens global stability, and new insurance models can help millions obtain needed financial tools.
Benefit corporation governance is an alternative to the traditional shareholder primacy model that dominates today’s legal and capital market mindsets. Entrepreneurs who raise capital with benefit corporations know they can consider all of their stakeholders and not just shareholders, while the investors know that they are investing in a business that has purpose at its core.
Ripple Food’s latest round of funding was led by Euclidean Capital—the family office of successful hedge fund manager Jim Simons—which invests in innovative companies like 23andMe and Imagen Technologies. Goldman Sachs participated as well.
Investments from these giants of the investing world is further evidence that benefit corporation governance is here for good.