H stands for Human. We are investing in a beautiful life. We invest in fundamental human needs and brands that speak to higher order human values. Naturally, there are a lot of things that we don't invest in.
Abraham Maslow's Hierarchy of Needs is a framework for human motivation. We invest in basic needs, which account for about 90% of consumer spend. We look for brands that we invest in speak to higher order values - like joy, connection, purpose, and legacy. Millward Brown, the second largest market research company in the world, did a study of 50,000 brands over a decade showed that brands that do this effectively outperform their peers in the stock market by 4x - and grow three times faster. We don't think this is a coincidence. In fact, it's part of our investment thesis: do well by doing good. The Firm is a provisional signatory to the UNPRI.
We respect the rights of workers and look to foster a working environment with good relationships between portfolio companies, their managers, employees, suppliers and partners, ultimately leading up to better long-term results for the business and society.
We are facing global environmental challenges and we encourage our portfolio companies and their suppliers and partners to use environmental resources responsibly and strive to conduct business in an environmentally sustainable way. In consumer, we pay particular attention to the production and sourcing of raw materials and the packaging and shipping of consumer goods. The Firm supports the Paris Agreement and Task Force on Climate-Related Financial Disclosures (TCFD).
Corruption is a major hindrance to sustainable development. It has a disproportionate impact on poor communities and is corrosive to society. We ask that our portfolio companies conduct business in an ethical manner and to partner with suppliers that share these values.
As a leading investor in early stage consumer companies, we take the health and safety of consumers very seriously. We rely on the prevailing science and encourage portfolio companies to avoid ingredients that are known to be harmful to human health. Consumers today are looking for healthy, sustainable options - and we want to provide growth capital to companies who are offering those alternatives.
As one of the few female-founded venture firms in the world, H Venture Partners respects the power of diversity of thought and experience and encourages portfolio companies to consider Diversity & Inclusion in their hiring, executive management, and board. We have a Zero Tolerance policy for harassment. In the consumer sector, over half of the founding teams we encounter have a female founder. We ask our portfolio companies to have at least one female on the board. Boards are typically made up of 3-5 members when we invest.
We invest in fundamental human needs and brands that speak to higher order human values. While many funds make good returns investing in vice, we are looking for opportunities that will improve lives. We do not invest in weapons, gambling, nicotine, pornography, or illicit drugs.