Sustainability Risks

Speedinvest GmbH (“Speedinvest”) considers sustainability risks as part of its investment decision-making process. Sustainability risks are environmental, social or governance events or conditions, the occurrence of which could have an actual or potential material adverse effect on the value of the investment. Speedinvest considers sustainability risks as part of the due diligence process prior to any investment. This also includes an assessment of sustainability risks. Such assessment is being conducted using a questionnaire. The results of such assessment are taken into account when the investment decision is being taken. Speedinvest remains free in its decision to refrain from investing or to invest despite sustainability risks in which case Speedinvest can also apply measures to reduce or mitigate any sustainability risks. At all times, Speedinvest will apply the principle of proportionality taking due account of the strategic relevance of an investment as well as its transactional context.

Principal adverse sustainability impacts statement 

Summary

Speedinvest considers principal adverse impacts of its investment decisions on sustainability factors before and after investments. Sustainability factors mean environmental, social and employee concerns, respect for human rights and the fight against corruption and bribery. No sustainability indicators are currently used. Speedinvest collects information regarding principal adverse impacts from portfolio companies using a questionnaire prior to the investment as well as on an ongoing basis. This principal adverse impact statement dates as of 10 March 2021.

Description of principal adverse sustainability impacts 

Speedinvest has not identified any adverse sustainability impacts related to its investments to date.

Description of policies to identify and prioritise principal adverse sustainability impacts

Prior to any investment, Speedinvest conducts due diligence. Part of this due diligence includes checking whether the investment could have a negative impact on sustainability factors. This check is performed using a checklist. The necessary information is obtained from the respective portfolio company. After an investment, i.e., during the holding period, a check is carried out at regular intervals to determine whether there have been or could be any adverse effects on sustainability factors. This review is carried out annually based on a checklist. In addition, the portfolio companies are expected to notify Speedinvest in writing on an ad hoc basis if any adverse effects on sustainability factors become apparent. If adverse effects on sustainability factors are identified before or after an investment, they are taken into account in light of the circumstances of the individual case, in particular considering other impacts of the investment, its size, strategic importance and transactional context.

Engagement policies

Speedinvest decides at its sole discretion whether or not to make an investment in light of principal adverse impacts on sustainability factors, and Speedinvest may apply risk mitigation measures where appropriate. Speedinvest organizes an onboarding session for each portfolio company it invests in. During such onboarding sessing Speedinvest discusses with and explains to the management of those portfolio companies how they can incorporate and implement consideration of adverse impacts into their daily operations.

References to international standards

Speedinvest is not a member of any international bodies, organizations or required by any national or international convention or standard to comply with any further requirements.

Remuneration Policy

As a manager of a qualifying venture capital fund as defined in article 3 (b) of the EuVECA Regulation, Speedinvest does not have, and does not need to have, a remuneration guideline or policy in accordance with the requirements of the EuVECA Regulation. Sustainability risks are not considered with respect to the determination of the remuneration.

Sustainability-related disclosures


Speedinvest III EuVECA GmbH & Co. KG


Summary

Speedinvest III EuVECA GmbH & Co. KG (the “Fund”) incorporates ESG principles within its investment processes and within its monitoring processes. 


No sustainable investment objective

Sustainable investment is not an objective of the Fund.


Environmental or social characteristics of the financial product

The Fund does not invest, guarantee or otherwise provide financial or other support, directly or indirectly, to companies, including portfolio companies, or other entities whose business activity consists of:

  • Tobacco
  • Distilled alcohol
  • Weapons and ammunition
  • Casinos and equivalent enterprises
  • Specific electronic data programs or solutions relating to the aforementioned activities or pornography

Investment Strategy

The Fund invests in early stage, i.e. pre-seed, seed and series A rounds, portfolio companies from all sectors with innovation capacity and growth potential with a focus on investments in emerging technologies.

Proportion of investments 

The Fund does not invest a fixed percentage in portfolio companies aligned with environmental and/or social characteristics. The Fund will invest fully in line with its investment strategy. No portion of the Fund’s capital will be allocated to other asset classes.

Monitoring of environmental or social characteristics

Speedinvest monitors for the Fund ESG compliance on an ongoing basis. On an annual basis, Speedinvest provides its portfolio companies with a questionnaire to assess any potential or existing adverse sustainability impacts. Speedinvest carefully reviews such completed questionnaires upon receipt. Furthermore, Speedinvest will apply best efforts when negotiating an investment into a portfolio company, to reach a side letter agreement requiring the portfolio company to notify Speedinvest in writing on an ad hoc basis if any adverse effects on sustainability factors become apparent. In such cases, Speedinvest reviews all information provided ad hoc by the portfolio companies and determines in its sole discretion whether any actions need to be taken to address any potential or existing adverse impacts.


Methodologies

Currently, the methodologies applied comprise of collecting information via a questionnaire from the portfolio companies either prior to the investment, i.e. within the due diligence process, or following the investment. Additionally, Speedinvest will apply best efforts when negotiating an investment into a portfolio company, to reach a side letter agreement requiring the portfolio company to notify Speedinvest in writing on an ad hoc basis if any adverse effects on sustainability factors become apparent. There is currently no quantitative measurement with regard to environmental or social characteristics and no sustainability indicators are currently used. 


Data sources and processing 

The questionnaire is completed by the portfolio company. Further research and investigation by Speedinvest is not being conducted regularly. 


Limitations to methodologies and data

The information collected via the questionnaire as part of Speedinvest’s due diligence on behalf of the Fund is externally verified only if and to the extent misrepresentations are suspected. Thus, it cannot be ruled out completely that false information may remain undetected in certain cases. As the Fund’s investment is made for several years, Speedinvest considers it a priority to establish and maintain a trust within a good working relationship with the portfolio company as a safeguard in light of the limitations described in this section.


Due diligence

Initially, the assessment of how the Fund’s investment in the portfolio company relates to the environmental or social characteristics mentioned above is carried out as part of the due diligence process using a questionnaire. Via the questionnaire, qualitative statements of an environmental or social nature or relating to corporate governance are requested from the portfolio companies and then taken into account in the investment decision-making process. The findings relating to the environmental or social or governance aspects are non-binding and being considered in light of all circumstances including the size of the investment, its strategic importance, its envisaged trajectory as well as the transactional context.


Engagement policies

Should Speedinvest on behalf of the Fund determine any potential issues relating the environmental or social characteristics, it will engage the portfolio company’s manager in discussions (e.g. in board meetings) with a view to resolving, reducing or mitigating such effects, provided that such efforts will always remain within a scope considered by Speedinvest in its absolute discretion to be proportionate in light of the size and strategic importance of the respective investment in the portfolio companies and shall take into account the respective bargaining positions and transactional context. 

Speedinvest II Co-Invest EuVECA GmbH & Co. KG 

The disclosure relating to Speedinvest III EuVECA GmbH & Co. KG applies accordingly to Speedinvest II Co-Invest EuVECA GmbH & Co. KG with the exception that the investment strategy of Speedinvest II Co-Invest EuVECA GmbH & Co. KG differs from that of Speedinvest III EuVECA GmbH & Co. KG and that the catalogue under “Environmental or social characteristics of the financial product” does not include tobacco and distilled alcohol. The investment strategy of Speedinvest II Co-Invest EuVECA GmbH & Co. KG may be summarized as being targeted at growth stage investments alongside Speedinvest II EuVECA GmbH & Co. KG.

Speedinvest X II EuVECA GmbH & Co. KG 

The disclosure relating to Speedinvest III EuVECA GmbH & Co. KG applies accordingly to Speedinvest X II GmbH & Co. KG with the exception that the investment strategy of Speedinvest X II GmbH & Co. KG differs from that of Speedinvest III EuVECA GmbH & Co. KG. The investment strategy of Speedinvest X II EuVECA GmbH & Co. KG may be summarized as being targeted at investments in European portfolio companies pursuing digital business models.”


Speedinvest Industry & Climate Opportunity EuVECA GmbH & Co KG

The disclosure relating to Speedinvest III EuVECA GmbH & Co. KG applies accordingly to Speedinvest Industry & Climate Opportunity EuVECA GmbH & Co KG with the exception that the investment strategy of Speedinvest Industry & Climate Opportunity EuVECA GmbH & Co KG differs from that of Speedinvest III EuVECA GmbH & Co. KG. The investment strategy of Speedinvest Industry & Climate Opportunity EuVECA GmbH & Co KG may be summarized as being targeted at investments in European climate and industrial technology-focused portfolio companies.

Speedinvest Opportunity I EuVECA GmbH & Co KG

The disclosure relating to Speedinvest III EuVECA GmbH & Co. KG applies accordingly to Speedinvest Opportunity I EuVECA GmbH & Co KG with the exception that the investment strategy of Speedinvest Opportunity I EuVECA GmbH & Co KG differs from that of Speedinvest III EuVECA GmbH & Co. KG. The investment strategy of Speedinvest Opportunity I EuVECA GmbH & Co KG may be summarized as being targeted at investments in European technology-focused portfolio companies in the growth stage.

Speedinvest IV EuVECA GmbH & Co KG

The disclosure relating to Speedinvest III EuVECA GmbH & Co. KG applies accordingly to Speedinvest IV EuVECA GmbH & Co KG.