IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
3x5 Partners, LLC
Climate Change
Health and Wellbeing
Natural Resources and ConservationFirm Overview
3x5 Partners is a venture capital firm that collaborates with passionate entrepreneurs who are developing solutions in response to global healthcare and climate needs. Established in Portland, Oregon, in 2011, 3x5 has delivered both top returns to investors and meaningful impact to the world.
Years of Operation: 10 years or more
% of Capital from Top 3 Investors: Less than 25%
We invest in what the world needs by collaborating with passionate entrepreneurs developing solutions in response to global healthcare and climate needs.
We seek opportunities in biotechnology, diagnostics, and medical devices that: - Save, extend, and improve the quality of human life - Produce breakthrough technologies to treat life-altering diseases and conditions - Reduce the cost of care and provide an economic benefit to all patients We seek opportunities with climate solutions companies that: - Reduce and evolve the consumption of the planet’s limited natural resources, including water, food, and energy - Expand access to resources essential for human well-being, such as clean drinking water - Innovate technology and business models to transform large, established, and key environmental markets such as for energy, water, and waste
We are unique venture investors with an industry-differentiated approach to making an impact. First and foremost, we invest in pre-revenue, capital intensive health and climate companies that traditional venture capital investors ignore. We invest in 8-10 companies per fund and are often the largest institutional owner. We believe addressing large, cross-sector systemic challenges requires focus. We invest $10-$20M per company and will often fund through their entire lifecycle. We prefer to lead early Series A and B investment rounds, with top-tier syndicate partners following us in later rounds after we have successfully de-risked the company with patience, fortitude, and leadership. We prioritize service to our portfolio companies by working as active board members, trusted advisors, partners, and stewards. Love and trust are our guiding values, which we see as foundational to building relationships, solving challenges, and ultimately delivering economic, environmental, and social impact.
Investment Example
Smart Wires is a global power technology company advancing the delivery of affordable, clean electricity worldwide through innovative technology and advanced analytics to maximize the grid’s capacity. Smart Wires is headquartered in North Carolina, with European headquarters in Dublin, Ireland, and a global workforce of 200 professionals spread across four continents. The company's flexible and modular products allow for improved capacity, resilience, and optimization of electricity networks in order to deliver more renewables at a lower cost and with less disruption to communities and the environment. 3x5 Partners first invested in Smart Wires in 2011, supporting the entirety of the Series A and B financings, as well as significant successive follow-on investments. For over a decade, we have served as board members and trusted partners as Smart Wires has grown from a University technology transfer start-up to a publicly listed leader in modular power flow control.
Leadership and Team
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Tony Arnerich – Managing Director and Co-founder More Info
Tony Arnerich, Managing Director and co-founder, has a notable 30+ year career in the investment industry. As the founder and former CEO and co-CIO of Arnerich Massena, a $11B registered investment advisory firm began in 1991, he has built innovative risk-adjusted diversified portfolios for private clients, foundations, and endowments and has been a leader in impact investing. He has been making direct investments since 2000; partnering on countless fundraises and developing close relationships and the confidence of CEOs. Tony currently serves on the boards of Vapotherm, Smart Wires and Fishpeople Seafood and sat on past boards of Salient and Accriva Diagnostics. He holds a Bachelor of Arts from Santa Clara University. |
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Nicholas Walrod – Managing Director and Co-founder More Info
Nicholas Walrod is a Managing Director and Co-Founder of 3×5 Partners. He brings 20 years of experience as an investor, board member, and strategic partner to the service of ground-breaking companies in the resource and medical technologies fields. As a General Partner of three Funds and many special purpose vehicles, Nick also serves on the board of directors of Fishpeople Seafood, Smart Wires, Good Therapeutics, Fervo Energy, and SOURCE Global. Previously, Nick sourced and managed hedge fund and private equity relationships at Arnerich Massena. Nick holds an A.B. in public policy studies from Duke University. |
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Joe Biller – Managing Director More Info
Joe Biller is a Managing Director at 3x5 Partners. Previously, Joe was a Managing Director at SightLine Partners where he helped raise over $250M to complete transactions in the healthcare sector, with a focus on medical devices. During his 14+ years at SightLine, he has served on numerous boards and has led, or was actively involved in completing, transactions in over 50 companies. Joe began his career at Bremer Asset Management. Joe graduated summa cum laude from the University of Wisconsin-Eau Claire and holds the Chartered Financial Analyst (CFA) designation. Joe currently serves as Co-Founder and Executive Director of The Shooting Star Foundation. |
Financial Performance
Impact Performance
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Percentage of Total Assets Under
Management that are Impact Investments: |
100%
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3x5 Partners identifies companies that specifically address the challenges posed by our planet’s growing and aging population. Our life science investments must improve patient outcomes and our natural resource investments must reduce and evolve our consumption of food, water, energy, and other natural resources. Our thesis circulates around the belief that the embedded social purpose of our companies drives our success. The missions and social improvements our companies strive for reinforce their value proposition and competitive advantage, and is what we believe, the overall purpose of capital.
With all potential investments, we conduct a full ESG screen on operations and business practices. A few examples of areas we explore prior to investment include: - Business ethics - Human capital and diversity - Corporate governance and executive compensation - Climate & Environmental Management - Labor management and labor practices - Supply chain systems - Product safety, quality, and use
Impact Tracking and Monitoring
Learn More
2540 NE MLK Blvd., Portland, OR 97212, USA
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