We are delighted to let you know we have invested in Treety, an impact tracking and reporting platform that enables investors and investees to measurably change the world and drive the transition to a sustainable impact-driven economy.
Treety’s solution provides the platform, tools and benchmarks for investors and their investees to measure and disclose their environmental and social impact performance to LP’s and regulators with credibility and confidence. As a result, Treety enables investors to be able to compare the companies it invests in and measure overall portfolio success in terms of impact on the planet and people alongside traditional financial KPIs.
What does Treety do?
Treety’s solution offers flexible plug-and-play impact tracking and regulation-friendly reporting for VC, PE, funds-of-funds and the entrepreneurs they invest in.
Based in the Netherlands, the Treety team have created their solution in response to market pressure and regulatory changes in EU markets, where regulators are forcing funds to track and report portfolio impact.
With over 65,000 funds under EU regulation as of 2022 and LP pressure rising, Treety has identified an urgent need for a solution to help investors and portfolio companies transition to impact reporting and comply with these regulations.
Why did Scalare invest?
The Market
Market pressure is changing the qualifications of a successful investment or business. Investors want to see that their investments have a positive impact beyond just financial returns, and regulations are around the corner requiring a comprehensive new set of calculations, metrics and impact values to be reported. As a result, there is an urgent need for businesses to take impact reporting seriously.
The Sustainable Finance Disclosure Regulation (SFDR) is an upcoming EU regulation being introduced to improve transparency in the market for sustainable investment products, prevent greenwashing and increase transparency around sustainability claims made by financial market participants.
The SFDR applies to financial market participants and financial advisors within the EU, however funds outside of Europe that are marketed in Europe also fall under the disclosure requirements. With SFDR coming into effect next year, investors and organizations must change how business performance is reported and success is defined beyond financial metrics.
This is a major step for European markets and is widely anticipated to be a reference for other financial markets with regard to sustainability standards. With the UK, EU and US all demonstrating examples of mandatory ESG reporting, Australia is likely to follow soon.
We are already seeing a positive trend in the Australian business community, with companies seeing the value of voluntarily communicating their sustainability commitments to engage investors, customers and employees.
The Founder/Team
Co-Founders Hatim Baheranwala and Mike van Wijhe have solid backgrounds in finance, entrepreneurship, and tech and have joined forces to create Treety.
A former founder, CEO Hatim brings a wealth of experience building companies from the ground up. With an early career in private equity asset management and significant engineering experience, he leads the product strategy, client delivery and talent functions for Treety.
CCO Mike brings nearly a decade of experience working side by side with tech founders and understands how business development, sales, partnerships and marketing are the lifeline driving growth from MVP to scale up phase. He brings commercial leadership experience across every stage of startup scaling.
The Co-Founders are supported by a diverse, talented and growing team with significant expertise in sustainability, impact reporting and software engineering.
The Product/technology
Treety’s solution is a flexible, user-friendly platform that enables investors and entrepreneurs to calculate, track and report true impact.
Traditionally, to obtain an SFDR-compliant report, current options in the marketplace have tended to be either very consultancy heavy or too focused on carbon accounting.
Treety’s SaaS is designed to make complex impact management simple, saving money for their customers, and taking the worry out of reporting.
Validation and compliance – Treety’s platform offers the ability to obtain best-in-class approval and meet impact reporting requirements.
Flexible, easy to set up and track impact in real-time – no need to hire consultants or spend time over manual Excel processes
Impact expertise and data – Treety provides validation and plugs the gaps in user skill and data sets.
For investors, Treety helps investors and their investees to calculate, track and share impact. The platform offers end-to-end impact tracking and reporting across the portfolio saving time and effort for the businesses as well as investees, plus communication tools for real-time impact showcasing and sharing with other stakeholders. Offering easy data collection with credible validated metrics and methodologies, it helps prepare investors for upcoming regulations by setting up a system that meets all criteria, whilst offering transparency.
For entrepreneurs, chasing profits without taking responsibility for the impact on people and planet is no longer acceptable within broader society. Treety’s technology is built to be flexible and adaptable to any standard – across geographies, sectors, and the company stage.
Momentum
Treety have a growing base of significant customers, including Privium Fund Management, Agfund, Grow and Google for Startups.
On their collaboration with Google for Startups, Treety’s client says:
The future of how we measure and report performance of our support to SDG startups will be centred around impact metrics, not just financial ones – and Treety makes this possible
– Irwin Boutboul, Lead, Google for Startups: Advisor, SDG @ Google
Treety is seeing a strong pipeline of customers by way of word-of-mouth recommendations, coupled with the growing implications of SFDR regulations on businesses. With SFDR going into effect next year the impact economy is an impending fact that will be here to stay.
Expansion plans
Having built the foundations needed to scale, Treety’s expansion plans include significant market expansion in 2023, targeting 40 investor clients, creating a ‘hands-free’ customer onboarding approach, offering investor benchmarking as part of their product and launching a free plan for startups.
Scalare is delighted to be supporting Treety as they set a new standard for how we define business success.
Investment & Engagement
Scalare will be working closely with Treety to deliver support in a range of business areas. Treety has appointed Neale Java from Scalare’s community in a Board advisory role. Neale has a strong track record in achieving significant enterprise value growth. His experience in capital raising, governance and leadership and execution will greatly complement the team as they scale up globally.
If you wish to discuss further, please contact Neale for an introduction to Mike and Hatim.
About Scalare
At Scalare, we’re on a mission to create a greater impact by building a collaborative network that connects exceptional founders, advisors and investors in a unique and powerful partnership, because real transformation and growth takes more than money.
Our unique collaboration and partnership model provides clear pathways to global investors, experts and markets. We plug existing skills gaps in our portfolio companies from our best-of-breed advisor network – to bring, expert resources exactly when needed to facilitate growth and deliver exceptional returns to investors and founders alike. Find out more >
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