Is It Time for a New Approach to Venture Capital?

The VC landscape is facing its own reckoning—both in Australia and across Europe. As highlighted in recent Capital Brief articles (Australia’s VC Reckoning and The Rise of Zombie VCs), the sector is grappling with some hard truths. Bloated portfolios, diminished LP confidence, and mounting pressure for exits have left many funds facing tough questions about their future.

Much of this sentiment is echoed in a recent article by Sifted, which reports that across Europe in 2024, a “flight to quality” took hold. This has made it particularly challenging for younger firms navigating a more demanding and risk-averse market. Succession planning has also become a pressing issue at long-established firms, suggesting an industry-wide shakeup may be on the horizon.

For pro-planet startups, this tumultuous environment raises a critical question: Is the current VC model fit for purpose when we’re trying to solve the planet’s most pressing challenges?

Growth at All Costs?

In our recent blog, Is Growth at All Costs the Right Path for Pro-Planet Startups?, we explored the pitfalls of chasing VC money that prioritises rapid growth over meaningful impact. For startups addressing planetary crises, the “growth at all costs” mantra can be not only impractical but counterproductive.

As Dan Winter, Partner at Arbor Capital, aptly outlines in his recent post on LinkedIn, Why Arbor Capital Is Taking a Different Approach, the future of venture investing may lie in more patient, considered capital. His team's new fund is built on the premise that long-term thinking can produce the returns demanded of a VC.

A Glimmer of Innovation: The Raaise SAFE

When we launched Raaise, we knew that pro-planet founders needed funding options that aligned with their missions and realities. Enter the Raaise SAFE—a novel investment instrument designed to provide balance between founders and investors, optionality in decision-making, and incentives for all stakeholders regardless of the startup’s eventual path.

At the time, the ecosystem wasn’t ready. Perhaps we were ahead of our time.

But with the cracks in traditional VC widening, it feels like the moment to revisit alternative models like the Raaise SAFE. A tool like this could help founders focus on sustainable, impactful growth rather than chasing inflated valuations, while giving investors confidence in a balanced, mutually beneficial relationship.

Investing in the Infinite Game

With the old ways of doing venture capital being tested, what we need now isn’t just innovation in climate tech or agritech—it’s innovation in how we fund these solutions.

The reality is, infinite growth on a finite planet simply isn’t possible. But what if we shifted the focus from finite exits to playing the infinite game? By investing in companies solving long-term problems with long-term thinking, we’re not just betting on a better planet—we’re creating one.

At Raaise, we’d love to be part of this shift. If you’re a founder, an investor, or just curious about what the future of funding could look like, let’s talk.

Because the world needs solutions, and solutions need the right capital.

Curious about the Raaise SAFE or how we’re helping founders and investors navigate this new landscape? Reach out to learn more.