With Johannes Lenhard, VentureESG: VCs and Policymakers need a 1.5 °C for Responsible Tech
I catch Johannes on a call from inside the office of London-based VC Atomico. It's March 2024 and he's bustling with energy, as usual, preparing for FRAME, the first major physical gathering of the VentureESG community he co-founded with Hannah Leach that will bring together 300 VCs and LPs later that fall. Johannes and I share more than just our German roots; we both believe that capital allocators wield immense power in shaping the future of responsible innovation. We lead together a major initiative working with big institutional LPs to foster responsible data innovation and AI on both sides of the Atlantic.
What's become glaringly apparent in our converstations is that VC investors (and LPs) lack a North Star for defining "good tech." This challenge far surpasses the relative (albeit highly complex) simplicity of measuring CO2 and methane emissions in tons. We're grappling with dynamic socio-economic systems disrupted by cutting-edge innovations, from Large Language Models to blockchain technology and computer-brain neurotech interfaces. This is when we decided to write an article together on VC, responsible tech and the intersection of capital markets and politics.
In our jointly authored article published in ImpactAlpha, we argue that the tech industry desperately needs its own version of the 1.5°C climate goal – a clear, actionable target to guide responsible innovation. We propose a three-pronged approach: defining a North Star metric for good digital technologies, translating key metrics into everyday practices for VCs and their portfolio companies, and developing alternative investment models that incentivize patient, sustainable growth beyond the high-pressure "move fast and break things" mentality.
The article, titled "Why VC investors need a 1.5°C goal for responsible tech," delves into the urgent need for a framework to guide responsible technological development. It draws parallels with the evolution of ethical standards in medicine and climate policy, highlighting the accelerated pace at which emerging technologies like AI and quantum computing are developing. The piece emphasizes the critical role of venture capitalists and limited partners in shaping the future of technology, given their influence over funding allocation and startup priorities. It calls for a collaborative effort among stakeholders to define the next agenda steps before it's too late, underscoring the existential risks at stake and the irrevocable impact of choices made today on our collective future.
As we discuss the article's implications, it's clear that the next steps involve not just the VC community, but also policymakers. There's a growing recognition that responsible tech development requires a symbiotic relationship between private capital and public governance. VCs need to work hand-in-hand with regulators to create an agile environment that fosters innovation while safeguarding societal interests. This collaboration could lead to more nuanced, effective policies that keep pace with rapid technological.
Read our full article on ImpactAlpha here.
