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Metrics & Performance

IRIS+ Metrics

Last updated

Quick Answer

A standardized catalog of impact performance metrics maintained by the GIIN, used by impact investors to measure and compare social and environmental outcomes across investments.

IRIS+ is the generally accepted system for measuring, managing, and optimizing impact, maintained by the Global Impact Investing Network (GIIN). It provides a catalog of standardized metrics organized by impact theme (e.g., clean energy, financial inclusion, affordable housing) and aligned with the UN Sustainable Development Goals. IRIS+ goes beyond a simple metric dictionary by providing curated sets of core metrics for specific impact themes, evidence maps linking metrics to outcomes, and guidance on how to use metrics in investment decision-making. For venture funds, IRIS+ provides a common language for impact reporting that enables comparison across portfolio companies and funds. Key metric categories include organizational metrics (describing the company), product metrics (describing what is delivered), and outcome metrics (describing the change created).

In Practice

An impact fund investing in clean energy startups uses the IRIS+ Clean Energy theme, reporting on: PI2845 (Clean Energy Generated in MWh), PI1479 (Greenhouse Gas Emissions Reduced in tons CO2e), OI8251 (Number of Individuals with Access to Clean Energy), and PI4060 (Jobs Created). These standardized metrics allow the fund's LPs to compare clean energy impact across multiple fund managers.

Why It Matters

IRIS+ provides the common language that makes impact investing comparable and credible. Without standardized metrics, every fund would define and measure impact differently, making it impossible for LPs to compare impact performance or hold managers accountable for their impact claims.

Frequently Asked Questions

What is IRIS+ Metrics in venture capital?

IRIS+ is the generally accepted system for measuring, managing, and optimizing impact, maintained by the Global Impact Investing Network (GIIN). It provides a catalog of standardized metrics organized by impact theme (e.g.

Why is IRIS+ Metrics important for startups?

Understanding IRIS+ Metrics is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.

What category does IRIS+ Metrics fall under in VC?

IRIS+ Metrics falls under the metrics category in venture capital. This area covers concepts related to the quantitative measures used to evaluate fund and company performance.

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