Brainforest's Impact Methodology

Why We Care About Impact

At Brainforest, we are driven by our mission to restore and regenerate 20 million hectares of biodiverse forests by 2030. Our world is facing unprecedented crises: climate change is accelerating, and biodiversity is disappearing at an alarming rate. According to the WWF’s Living Planet Report, we’ve seen a 68% decline in global wildlife populations since 1970, and forest loss contributes to nearly 10% of annual human-induced CO2 emissions. The scale of these challenges demands immediate, innovative solutions that can be implemented faster and with greater impact.

We believe that entrepreneurship is one of the most powerful ways to address these issues. Traditional NGO models aren't scaling at the pace of our global economy, which is why we support projects with the potential to grow and become financially independent, driven by passionate individuals who can achieve real and lasting change. Our goal is to support the most impactful ideas, which is why we've developed our expertise in two key areas of forests: the Biodiversity Lab and the Food Lab. These labs were established following in-depth systems mapping to identify the key leverage points where targeted solutions can have the greatest effect.

This is where our impact begins—with a deep understanding of the problem. We ensure that we're addressing the most critical challenges by supporting ventures from their earliest stages and helping them scale to reach their full potential.

As part of our commitment to advancing these solutions, we developed a strategic methodology to track and measure our impact. This enables us to report transparently on our progress, both at the platform level and at the venture level. By monitoring our efforts, we ensure that we are making meaningful contributions toward the restoration of our planet's forests and the preservation of its biodiversity.

Pioneering Ventures for Forest Restoration and Regeneration

Established in December 2019, Brainforest is the first venture platform dedicated to forests and biodiversity. Our mission is to regenerate and protect 20 million hectares of biodiverse forests by 2030. By blending entrepreneurial acumen with deep conservation expertise, we are uniquely positioned to tackle the critical and growing challenges posed by climate change and biodiversity loss.

From the outset, Brainforest was created to bring impactful solutions to market quickly. Initially founded as a Venture Studio, our approach was driven by the urgent need to address forest loss and biodiversity decline through scalable, for-profit, impact-driven solutions. As a Venture Studio, our mission was to spin off impact companies such as Venture Builders and Entrepreneurs in Residence. Using systems mapping, we identified key leverage points within forest, biodiversity, and food systems where our interventions could have the most significant impact. This analytical process highlighted that there are many brilliant minds developing solutions, but they often lack the resources, support, and expertise to scale them effectively. We realized the enormous synergy potential working with those entrepreneurs and so we shifted from building ventures internally to source entrepreneurs and knowledge globally and fully focus on supporting them on their journey to their first funding round and beyond. We are expanding our capacity to support, fund, and accelerate entrepreneurs and their ideas and ventures that tackle the identified leverage points.

As a Venture Platform, Brainforest connects forest and biodiversity experts, startups, and mission-driven funders, creating an ecosystem that fosters scalable solutions.

Our two current focus areas within forests are our Biodiversity Lab and Food Lab. Both labs have conducted systems mapping exercises to identify the key leverage points in these complex systems, providing the foundation for our calls for solutions in our Venture Programs. Our platform approach also pioneered a blended finance model in Switzerland, utilizing philanthropic capital to de-risk early-stage ventures and attract impact investments. Over the past four years, we have raised CHF 6 million in grants and secured CHF 12 million in impact investments for our portfolio ventures, including BioTara, Ecosystem Value Alliance Foundation, Xilva, and Orijin.

Our flagship initiative is the Venture Program, designed to support founders in the early stages of their company, preparing them for their first fundraising round. Participants receive hands-on guidance, expert mentorship, and access to high-quality resources, helping them build sustainable business models and become investment-ready. This process serves not only as a means of support but also as a hands-on due diligence process to ensure that the ventures we back are both viable and impactful.

In addition to our Venture Program, we have initiated the fundraising phase for the Canopy Fund I. This fund aims to unlock innovative financing solutions—such as impact- linked loans, revenue-based financing, and equity investments—to provide ongoing support for high-potential ventures. By utilizing blended finance, we address the funding challenges faced by impact-driven startups, offering them greater flexibility and longer time horizons. With additional resources allocated to select ventures from our programs, we aim to significantly scale their impact and drive exponential growth for these mission-driven businesses.

Our selection process ensures that every venture we support embeds impact at the core of its business model, enabling us to drive meaningful environmental and socio- economic change. We take pride in our ability to attract top-tier nature entrepreneurs globally, and our strong partnerships with organizations such as the Wyss Academy for Nature, Amazonia 4.0, and Gebana enhance our capacity to scale solutions effectively.

With a proven track record and a strong team of seasoned professionals, including co- founder and CEO Leo Caprez and Chief Venture Officer Thomas Gmeiner, Brainforest continues to pioneer solutions in forest conservation and biodiversity. By transitioning into a comprehensive Venture Platform, we are better equipped to accelerate the solutions needed to address the global climate change and biodiversity loss crises while also creating opportunities for impact investments to thrive in these nascent markets.

Introducing our Theory of Change

Our impact methodology at Brainforest is built on standard impact management and measurement frameworks and methodologies, but we strive to go the extra mile. As a venture platform, our change is represented by the ventures we support and finance. However, our commitment goes beyond this; we are dedicated to enabling systemic, sustainable change with the ambitious goal of regenerating and restoring 20 million hectares of forests by 2030. To achieve this, we focus on two sets of key impact metrics: one at the platform level for Brainforest’s overall impact (meta-level), and another specific to each of the Brainforest-supported ventures. These metrics are designed to capture both the broad, overarching impact of our Venture Platform and the individual outcomes driven by the ventures we support.

These metrics are embedded into our shareholder agreements, ensuring consistent monitoring and reporting of the collective impact we are generating. Additionally, each venture we support receives tailored guidance in crafting their impact strategies, allowing them to track and achieve their unique impact goals. This is where we are different—at Brainforest; we hold ourselves and our ventures accountable to ensure that impact remains the driving force behind everything we do. Below, you can explore our Theory of Change, which illustrates how our efforts are aligned to drive meaningful and lasting environmental transformation.

Brainforest Theory of Change 2023

The above image goes step by step into our impact journey so far and forecasts what the future holds. Our key initiatives are our main activities at the platform level. The main achievements mentioned are milestones achieved within the year 2023—a pillar year as it was the founding time for our labs, and we created our first venture programs. Our mission-driven objectives are inspired by the milestones we achieved and express the stepping stones we are setting ourselves to reach our eventual impact goals and targets—our vision if you will. We will go into more detail, focusing on some of the key objectives we have set in the next section.

Our Impact Strategy in Practice

Brainforest's Theory of Change (ToC) was meticulously crafted with the support of an external Impact Advisor, using their expertise to ensure a comprehensive and effective approach. Based on our impact results from the year 2023 (01.01.2023– 31.12.2023), this ToC sets the foundation for our objectives moving forward. The outcomes we have outlined are not just goals but commitments to drive systemic, sustainable change in forest conservation and biodiversity restoration. In the next portion of this paper, we will use the 5 dimensions of impact framework—in accordance with the IMP's standard framework and methodology—to share more detail about our main mission-driven objectives.

What

Our focus is on both platform-level and venture-level outcomes, ensuring a comprehensive approach to impact.

Platform Level

Through our mission, we aim to inspire and attract a robust network of support partners. Our Venture Platform is designed to draw in top-tier nature entrepreneurs from around the globe, with direct investments from private investors in our ventures providing a 30x catalytic leverage* on philanthropic capital. These platform-level goals are central to scaling our influence and ensuring that the right support structures are in place for sustainable impact. *Catalytic Leverage Ratio = 30x Private Capital Mobilized (CHF) relative to Canopy Fund Catalytic Investment (CHF)

Venture Level

Our ventures are required to track and report on three critical metrics: the number of hectares of biodiverse forests restored or protected, CO2eq sequestered, and the percentage increase in income for local communities, farmers, and producers. These metrics are monitored annually, with comprehensive reports shared every two years to provide a clear picture of the long-term impact they are achieving. By focusing on these areas, our ventures ensure alignment with our overall mission while driving tangible, measurable outcomes.

Who

The goals we set are carefully designed to engage and benefit those who are most underserved and who need our impact efforts the most.

Platform Level

Our platform-level efforts target entrepreneurs who are often underserved and need significant support to bring impact-driven solutions to market. To help them succeed, we engage knowledge and industry experts, foundations, family offices, and impact investors—key partners essential to driving our mission forward.

Venture Level

Our ventures aim to benefit local communities, who are often the most underserved and in need of solutions that both involve and support them at every step. Our efforts also engage founding teams, target customers (whether B2B or B2B2C), and local businesses and entrepreneurs, ensuring that the impact of our ventures is both widespread and deep.

How Much

To ensure we are on track to achieve our impact goals, we have set specific metrics and numerical targets at both the platform and venture levels.

Platform Level

Our short- to mid-term goals (by 2027) include receiving 200 applications per cohort (400 per year), incorporating and funding 4-5 ventures annually, formalizing partnerships with over 40 global experts, and achieving a leverage ratio of 30x over the longer term. These targets are designed to build momentum and scale our impact effectively.

Venture Level

Our ventures aim to restore or protect 9 million hectares of biodiverse forests by 2027, achieve substantial CO2 sequestration (with calculations pending), and increase the income of underserved groups—including indigenous and local forest communities, smallholder farmers, and local project developers—by 15% by 2030, depending on the focus of each venture. These targets are ambitious but necessary to drive the kind of systemic change that is at the heart of our mission.

Contribution

Brainforest plays a critical role as an enabler, connecting relevant stakeholders in the forest and biodiversity domains. The outcomes we achieve at the platform level are directly attributable to Brainforest's efforts to foster collaboration and provide support. Similarly, the success of our ventures is closely tied to our selection process and the hands-on guidance we provide. For instance, our ability to de-risk investments in this space opens the door to more funding in early-stage ventures, which might not otherwise have access to necessary capital. This contribution is essential to achieving the impact targets we have set, as these goals could not be reached without our involvement and the ecosystem we've built.

Risk

Failing to achieve our goals poses significant risks not only to the stakeholders we engage but also to the broader community and the planet. If our ventures do not generate sufficient incentives for communities, we risk losing the critical buy-in needed to protect forests. There is also the risk that ventures may not align with the actual needs of communities, leading to ineffective or unsustainable outcomes. Furthermore, Brainforest faces the challenge of scaling our capacity to fund and mentor an increasing number of solutions, which is crucial as the pool of biodiversity and forest entrepreneurs remains finite. Lastly, there is the overarching risk that without sufficient collaboration, individual efforts may be too fragmented to drive the systemic change needed, leaving us vulnerable to the severe consequences of climate change, such as reaching a tipping point where forest loss becomes irreversible.

Conclusion

Our Theory of Change for 2023 is ambitious and necessary, setting the stage for the impact we aim to achieve in the coming years. By focusing on both platform-level and venture-level outcomes, engaging underserved communities and stakeholders, and setting clear, measurable targets, we are positioning Brainforest to be a leader in forest conservation and biodiversity restoration. Our contribution is crucial in this space, and while the risks are significant, the potential for meaningful, lasting change makes the effort indispensable. Through this approach, we are not just meeting our goals—we are paving the way for a more sustainable and equitable future.

Case Study: Muvuca

Having shared our impact strategy and the distinction between the platform and venture-level objectives, this case study showcases our portfolio company, Muvuca and illustrates their journey to develop their impact strategy.

Impact Goals and Projections

Building strong relationships with farmers is crucial to our success. We will provide continuous support through working groups within farmer cooperatives, business and financial training, technical assistance and securing market opportunities via long-term contracts.

Main Challenges and Benefits (Case Study Muvuca)

Challenges:

Brazilian Bureaucracy
Our biggest challenge in the earliest stage of our development has been navigating the complex Brazilian bureaucracy to receive international philanthropic funds in a timely manner. Establishing our non-profit and ensuring that the funds were tax-free required contracting an accountant and took several months to finalize. This delay impacted our ability to quickly scale our operations and implement our projects as planned. That process is finished and should not be a problem in the future.

Balancing Sales and Impact
Another ongoing challenge is maintaining a balance between our commercial activities and our impact goals, especially as we scale. We need to ensure that our growth doesn’t compromise the social and environmental impact we aim to achieve.

Benefits:

Enhanced Fundraising
We believe that having clear impact goals and metrics will make it easier to attract aligned investors. Our ToC, combined with our long-standing relationships with local farmers, help build confidence among potential funders.

Accomplishments to Date
We have successfully launched our e-commerce platform, gained attention from many local farmers in our project, and established a growing consumer base that supports our mission.

Disclosure on Reporting:

Reporting Recurrence: We commit to quarterly updates on our core metrics, including the number of farmers transitioned, land under regenerative agriculture, and financial impacts on participating farmers. These reports will be shared with stakeholders, providing transparency on our progress. Additionally, an annual impact assessment will be conducted to evaluate long-term goals and make necessary adjustments to our strategy.

Join our Journey - Brainforest Seeks Partners and Supporters

Securing capital for nature and social startups is particularly challenging due to their low-return profiles. A key issue impeding funding in our impact area is the mismatch between investor expectations and the realities of these ventures. Impact initiatives often start with less formal business structures and may lack the sophisticated financial projections or business plans that traditional investors expect.

Additionally, impact ventures often prioritize social or environmental returns over financial gains, resulting in lower or slower financial returns. This discrepancy limits the availability of capital for these critical ventures and exacerbates the challenges of financial sustainability and effective capital deployment in regions that desperately need social and environmental interventions.

To address these challenges, we are pioneering innovative partnerships with foundations and investors to support our activities. We leverage philanthropic capital to provide hands-on support to a limited number of ventures through our venture programs, significantly reducing the risk for our supported ventures and driving private capital into high-impact startups. Our approach involves working closely with these ventures, offering tailored support to ensure their growth and sustainability. We seek partners who understand that creating impact takes time, requires a higher degree of flexibility and adaptability, and involves prioritizing different values than traditional business approaches. We invite foundations and investors to join us in this mission, recognizing the need for patience, innovation, and a commitment to social and environmental returns.

By partnering with us, you will be contributing to a transformative approach that not only addresses urgent social and environmental challenges but also paves the way for sustainable and impactful solutions. Your support will help bridge the gap between traditional funding mechanisms and the unique needs of social impact ventures, ultimately fostering a more inclusive and effective ecosystem for high-impact startups.