In episode 1 of the Investing in Impact podcast, I speak with Peter Bruce-Clark, Partner at Social Impact Capital on funding ambitious impact entrepreneurs building world changing companies.

Peter was Head of Business Development at RCI, a investment technology and alternative lending platform backed by 8VC and Soros Fund Management.

Prior to that, Peter created both an early-stage AI venture capital firm focused on investing in companies using machine learning in high-impact areas of application, as well as a specialist strategy and management consultancy for institutional investors, Kalytix Partners (acquired), founded by Dr. Ashby Monk and Prof. Gordon Clark.

Peter has extensive management consulting, investment research, and industry analysis experience.

In addition to his work, Peter has led research on impact finance and strategic investment at Stanford University, collaborating with Planet Heritage and White Sand Investor Group.

His publications include Sovereign Development Funds: The Governance and Management of Strategic Investment Institutions, which was published in the The Oxford Handbook of Sovereign Wealth Funds (2018).

Peter has an MPhil in Business Administration and Finance from the Judge Business School, University of Cambridge, and a first-class honors BA in English and Critical Theory from Queen Mary, University of London.

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Full Interview

[00:00]

Host (Grant):

What’s up, everybody! This is Grant from Causeartist. Welcome to the first episode of Investing in Impact, where I chat with impact investors and firms from around the world. We’ll be exploring what it means to be a social impact investor and what the future holds for companies and founders who are driving positive change.

I’ve always been fascinated by the intersection of finance, social entrepreneurship, and social impact. Seeing capital injected into businesses that aim to create social good excites me, and I believe it can change how we view business entirely. In this show, we’ll discuss how this conscious shift in investing is unfolding and why it’s something I’m incredibly passionate about.

Today, I’m thrilled to kick off this series by talking with Peter Bruce-Clark, a partner at Social Impact Capital. This firm invests in ambitious entrepreneurs who are building world-changing companies. Their investments seek to produce venture capital returns while solving some of the world’s most challenging problems.

Peter has an impressive background. Beyond his role at Social Impact Capital, he’s led research on impact finance and strategic investment at Stanford University, collaborated with Planet Heritage, and contributed to publications like The Oxford Handbook of Sovereign Wealth Funds. He holds a master’s degree from the University of Cambridge and a first-class honors bachelor’s degree in English and critical theory from Queen Mary University of London.

Peter is passionate about understanding how money can change the world. He digs into personal stories, shares his thoughts on choosing investments, and explains how Social Impact Capital evaluates companies for both financial returns and long-term impact. We also dive into some of the companies in their portfolio—each one a fantastic example of the power of impact investing.

I hope you enjoy the conversation and the show. Let’s get started!

[03:51]

Host (Grant):

Peter, how did you first get into impact investing? You’ve had a pretty diverse journey—what led you down this path?

Peter Bruce-Clark:

After graduating, I had a background in the humanities and arts, specifically in English literature and political theory. I was deeply into philosophy, exploring how the economy shapes how we live and think. After university, I got an internship at Mercer, an investment consulting firm in New York. That experience really opened my eyes to how capital is allocated and the massive impact that has on society.

At the same time, I was studying continental philosophy at Columbia, which is heavy stuff—think German idealism, Hegel, and more. Through that, I started questioning how the economy and capital allocation could be done differently. It became clear to me that if we allocated capital differently, we could live in a completely different world.

Eventually, I got deeper into finance and realized that having agency over capital—directing it towards impactful projects—was something I wanted to pursue. My background helped shape this understanding, especially since I grew up in an academic family focused on sustainability and long-term investment.

After my internship, I went back to England for my master’s, and one of the courses that really inspired me was on financial markets and globalization. It helped me realize the power of capital as a structuring force in our lives. That’s when I really got into the idea of using finance to create change, and eventually, I discovered impact investing about 10 years ago.

[10:42]

Host (Grant):

What year was this? Was impact investing even on the radar back then?

Peter Bruce-Clark:

It was about seven or eight years ago. At that time, impact investing was still very nascent. There were some reports here and there from banks and consultancies, but nothing too sophisticated. That’s when I got involved in a research project with Ashby Monk at Stanford, who was fascinated by how to engineer finance differently. His research unit was funded by pension funds and large corporations, and they wanted to explore what impact investing could look like.

I had the chance to meet a wide range of investors—from sovereign wealth funds to venture capital firms—and started understanding what they were trying to achieve through their investments. I realized that capital had the potential to create significant change if we invested it in ways that aligned with our values.

[12:42]

Host (Grant):

Impact investing can mean different things to different people. How do you define it, especially in the context of Social Impact Capital?

Peter Bruce-Clark:

The distinction I make is that impact investing is an investment strategy, just like ESG (Environmental, Social, and Governance). It’s not an asset class. The strategy depends on the asset class you’re working with.

In impact investing, the core belief is that by investing in companies or projects where the business model itself creates positive environmental or social impact, you can scale both financial returns and impact at the same time. As the business grows, the impact grows with it. This is different from ESG, which is more about improving existing businesses in a retroactive way—like making them more efficient or encouraging better practices without fundamentally changing their business model.

[15:17]

Host (Grant):

Can you explain ESG for those who might not be familiar with the term?

Peter Bruce-Clark:

Sure! ESG stands for Environmental, Social, and Governance. It’s an investment framework that assesses companies based on their environmental footprint, social responsibility (like board diversity or supply chain practices), and governance structures. It’s typically a screening process where certain investments are either included or excluded from portfolios based on how they perform in these areas.

Unlike impact investing, ESG tends to be more prevalent in the public markets. It’s about tweaking a company’s practices to improve its environmental or social outcomes, but it doesn’t require the company to completely change its business model.

[18:57]

Host (Grant):

When you look at a company’s environmental impact, especially as it scales, how do you ensure it stays aligned with its original mission?

Peter Bruce-Clark:

It’s a great question. For us, it’s about creating a strong foundation from the beginning. We require the companies we invest in to articulate, monitor, and measure their impact over time, and we bring in third-party auditors to verify their progress.

But as companies grow, especially beyond the Series A stage, it gets trickier. Mergers and acquisitions can pose challenges to maintaining the original mission. That’s why we’re part of networks like Impact Capital Managers, where fund managers collaborate to ensure that the companies we invest in remain mission-driven even as they grow or exit.

[22:09]

Host (Grant):

Do you recommend certifications like B Corp or Fairtrade for your portfolio companies, or do you have your own system for evaluating impact?

Peter Bruce-Clark:

We don’t rely on certifications like B Corp to ensure impact. Instead, we focus on investing in mission-driven founders who are naturally aligned with the right values. Our thesis is that if the company’s business model is designed to create impact, it’s hard for them to stray from that path.

We also look for companies that are fundamentally changing their industries by offering better, more efficient solutions—like businesses that supplant outdated modes of production with more sustainable practices.

[25:26]

Host (Grant):

Can you tell us about some of the companies in your portfolio? What are they doing, and why are you excited about them?

Peter Bruce-Clark:

Sure! One company we’ve invested in is PreAct, which has sensor technology that can prevent injuries and deaths from car accidents by 86%. This technology, originally developed by DARPA to shoot down missiles, can be integrated into any vehicle to dramatically improve safety.

Another company we’re excited about is Wild Earth, a pet food company using koji mushrooms, which have a higher protein content than steak and are much better for the environment. Animal farming is one of the largest contributors to climate change, and 36% of the emissions from animal husbandry go to pet food. By changing what we feed our pets, we can make a significant impact.

We’ve also invested in Endless West, a company that produces alternative spirits using a fraction of the water required for traditional methods. It’s a huge innovation in terms of sustainability and reducing water waste in the alcohol industry.

Finally, MilkRun is a platform that connects small and medium farms with consumers, delivering fresh produce directly to people’s doors. It’s helping to save farms from going bankrupt while reducing food waste and supporting local communities.

[35:25]

Host (Grant):

Thanks so much for your insights, Peter! I really appreciate you taking the time to share what Social Impact Capital is doing and how you approach impact investing. I’ll make sure to link to the portfolio so listeners can dive deeper into the companies you’ve mentioned. I think understanding where and how we allocate capital is key to creating a better world, and it’s exciting to see what’s possible.

Peter Bruce-Clark:

Thanks for having me! And just to add, we’re very demanding investors. We benchmark our performance across the top decile of venture capital firms. It’s not about making concessions for impact—we believe you can have outsized returns while staying true to your values. That’s what we aim to prove.

Host (Grant):

Absolutely! Impact investing is not just good for the world—it’s good for capitalism too. Thanks again.