My Summer With Loyal VC and Working Capital Fund

This past summer, I had the opportunity to intern with two unique venture capital firms: Loyal VC and Working Capital Fund. These experiences not only expanded my skills in due diligence, research, and impact assessment but also offered valuable insights into the nuances of the startup ecosystem, especially in the areas of social and environmental impact. Here's a look back at my challenges, the lessons I learned, and the memorable moments that shaped my summer.

Working capital fund: Exploring tech for social impact

My time at the Working Capital Fund was an eye-opening dive into the world of tech-focused, early-stage impact investing. The fund aims to support startups whose innovations help build ethical, transparent supply chains and protect labour rights. 

I conducted research and due diligence for startups seeking funding and developing subsectors ripe for investment. The experience gave me a close-up look at the opportunities and challenges in sectors like Insurtech, product traceability, and AI-driven, so-called "first-mile" data platforms for industries where sourcing is historically complex—and often controversial (e.g. cobalt mining in the Democratic Republic of the Congo).

One of the most memorable projects involved evaluating a startup developing a product that would enable MNCs with global supply chains to identify the source of raw materials that compose their products. Exploring how regulations and innovative technology could transform supply chain operations was fascinating. Still, it was also challenging to assess the market opportunity for an untested solution in a developing field.

I learned to analyse market dynamics and competitive landscapes critically, considering current market needs and future regulatory changes that could shape demand.

One significant challenge was evaluating the scalability of the startups' solutions. With early-stage companies, there are often more questions than answers. I had to quickly learn how to ask the right questions and dive into areas like regulatory trends, technological feasibility, and market readiness. This process taught me the importance of balancing optimism with pragmatism—believing in a startup's vision while critically assessing its path to execution.

MBA Impact Fellow at Loyal VC: quantifying impact in sustainability

With its global footprint of over 300 investments across 60 countries, Loyal VC is an incredible partner to INSEAD, funding many alumni entrepreneurs. They have a unique funding model, offering small-scale investments to various startups, scaling that investment over time, and rigorously measuring impact. The assessments I conducted focused on three startups in different countries.

Collaborating with the founders was a unique experience that helped me understand the companies' potential for impact and the founders' passion and determination to drive change.

Drawing from my NGO background, I understood the complexity of measuring impact. Social and environmental impact is much harder to quantify than financial metrics, making it almost impossible to aggregate and compare across a portfolio. However, Loyal's unique methodology leverages academic research to assign monetary values to the drivers of impact embedded in a business model. For example (hypothetically speaking), how many pounds worth of emissions does a company generate by taking flights each year? How many pounds are saved through avoided hospital visits due to a healthcare services app?

Translating qualitative impact into quantitative metrics was challenging, mainly when accounting for variables like geographic impact variations and long-term sustainability. However, seeing the numbers come together was immensely rewarding, providing a data-driven story that could enhance the startup's pitch to investors.

Conclusion: A summer of growth and insight

Both internships reinforced my passion for working at the intersection of business, social impact, and technology. At Working Capital Fund, I sharpened my skills in due diligence and learned to navigate the uncertainties that come with early-stage investments. At Loyal VC, I learned one of many ways to measure impact, which will undoubtedly inform how I view social investing in the future.

I'm excited to apply these experiences to my future career, bringing a balanced approach to evaluating startups that consider both financial return and social good.

I'm grateful for the mentors, colleagues, and founders who shared their insights and stories, making this journey educational and inspiring.

This internship experience was supported by the INSEAD Hoffmann Institute Impact Internship Stipend and gifts from alumni.