The original poster is seeking venture capital funds that prioritize ethical considerations alongside financial returns. They are specifically interested in funds that actively avoid investing in companies contributing to societal harms like environmental damage, exploitation, or addiction. They're looking for recommendations of VCs with a demonstrably strong commitment to ethical investing, potentially including impact investing funds or those with publicly stated ethical guidelines.
The Hacker News post titled "Ask HN: Ethical VC Funds?" poses a query to the community regarding the existence and identification of venture capital funds that operate under a framework of strong ethical considerations. The original poster (OP) articulates a desire to invest in such a fund, prioritizing alignment with their personal values over maximizing potential financial returns. They express a specific interest in funds that actively avoid investments in sectors deemed harmful or exploitative, providing examples like weapons manufacturing, surveillance technologies, and industries contributing significantly to climate change. Essentially, the OP is seeking recommendations for venture capital firms that demonstrate a commitment to responsible investing, placing ethical impact alongside, or potentially above, profit maximization as a core operational tenet. They are asking the community to share their knowledge of any funds that fit this description, facilitating their search for an investment vehicle that resonates with their values.
Summary of Comments ( 23 )
https://news.ycombinator.com/item?id=43183450
The Hacker News comments on "Ask HN: Ethical VC Funds?" express skepticism about the existence of truly "ethical" VCs. Many commenters argue that the fundamental nature of venture capital, which seeks maximum returns, is inherently at odds with ethical considerations. Some suggest that impact investing might be a closer fit for the OP's goals, while others point out the difficulty of defining "ethical" in a universally accepted way. Several commenters mention specific funds or strategies that incorporate ESG (Environmental, Social, and Governance) factors, but acknowledge that these are often more about risk mitigation and public image than genuine ethical concerns. A few commenters offer more cynical takes, suggesting that "ethical VC" is primarily a marketing tactic. Overall, the consensus leans towards pragmatism, with many suggesting the OP focus on finding VCs whose values align with their own, rather than searching for a mythical perfectly ethical fund.
The Hacker News post "Ask HN: Ethical VC Funds?" generated a moderate number of comments discussing the complexities and challenges of defining and finding "ethical" venture capital funds. Several commenters expressed skepticism about the existence of truly ethical VC funds, arguing that the fundamental nature of venture capital, which is to maximize returns, often conflicts with ethical considerations.
One compelling argument highlighted the inherent tension between profit maximization and ethical behavior. Commenters pointed out that VCs are primarily beholden to their limited partners (LPs), who expect high returns on their investments. This pressure to deliver profits can lead VCs to prioritize growth and financial success over potentially ethical concerns, such as labor practices, environmental impact, or societal consequences of the businesses they fund. Some commenters argued that even if a VC fund claims to be ethical, the underlying drive for profit ultimately compromises their ethical stance.
Another recurring theme in the comments was the difficulty of defining "ethical" in the context of venture capital. What one person considers ethical, another might not. Some commenters suggested that ethical investing could encompass various factors, including environmental, social, and governance (ESG) criteria, impact investing, or avoiding investments in certain industries like weapons, gambling, or tobacco. However, there was no consensus on a universal definition of ethical VC, making it challenging for investors to identify funds that align with their specific values.
Several commenters also discussed the potential for "greenwashing," where VC funds might market themselves as ethical without genuinely adhering to ethical principles. This skepticism underscored the need for greater transparency and accountability in the VC industry. Some users suggested that truly ethical VCs should be transparent about their investment criteria, portfolio companies, and the impact of their investments.
While some commenters expressed pessimism about the possibility of truly ethical VC, others offered more optimistic perspectives. They suggested looking for funds that explicitly prioritize ESG factors, engage in impact investing, or focus on specific areas like renewable energy or social enterprises. Some users also emphasized the importance of due diligence and researching the VC firm's values and track record before investing.
Finally, a few commenters mentioned specific VC funds perceived as having a more ethical approach, although these suggestions were often accompanied by caveats and disclaimers. The overall sentiment in the comments reflected the ongoing debate and evolving understanding of what constitutes ethical investing in the venture capital world. It highlighted the need for more robust criteria, greater transparency, and a continued conversation around the intersection of profit and ethics in the VC industry.