Renewal focuses on earth friendly products

Socially responsible venture investor Renewal Partners has raised $14 million toward a second fund that the company says is targeted between $30 million and $50 million

The Vancouver, B.C.-based firm invests in organic and natural foods, sustainable consumer and building products, social media and social finance. Renewal Partners President Paul Richardson expects to invest in 15 to 20 companies over the fund’s 10-year term, with an average investment of $2 million per company.

Renewal’s first fund was raised from a handful of private investors, including Carol Newell, an heir to the Newell Rubbermaid fortune.

“We got to the point a couple of years ago, when we were fully invested in terms of Carol’s money, but had built up deal flow in a space that not many people were investing in,” says Richardson. “It meant us turning into fund-raisers, since we decided there were many more great companies out there to invest in.”

The firm launched fund-raising efforts for the second fund last fall. Since then, Richardson says that the lack of capital to invest in startups has become even more acute and the need for capital “has become more apparent.”

Fund-raising has been slower than expected, says Richardson, who thought he would raise $20 million by the end of March. But he says the firm is likely to eventually hit its target range.

“Given how rough things have been for the world economy, the fact we’ve had significant uptake on our fund is to me a great sign that there are people interested in this space,” he says.

Renewal’s first fund has made at least 20 investments, according to its website, including six investments in companies that make or distribute organic food, such as Eatmore Sprouts and Happy Planet; five investments in companies that develop “independent media or innovative technology,” such as Sounds True, which sells audio recordings from spiritual leaders; five investments in firms that do “responsible investing,” such as Investeco Capital and Underdog Ventures; and four investments in companies that develop green products, such as Seventh Generation, which makes dye-free dryer sheets and other environmentally friendly products.

Given how rough things have been for the world economy, the fact we’ve had significant uptake on our fund is to me a great sign that there are people interested in this space.

Paul Richardson

One thing the firm doesn’t invest in is cleantech, partly because cleantech investments are more capital intensive, Richardson says.

“Our attitude is there’s a lot of smart money going into cleantech and it is being capitalized in a good way by many great people,” he says. —Alexander HaislipDEALWATCH: Five investments by Renewal Partners

Communicopia_Web tools for organizations working for sustainability and social change.

Happy Planet_Organic juices and soups.

Lunapads International Products_Sustainable menstrual products.

Salt Spring Coffee_Fair trade and organic coffee.

Seventh Generation_Environmentally-responsible home care products.

Source: Renewal Partners