Assessing Mission Drift at Venture Capital Impact Investors

This article examines how impact investing venture capital firms navigate the inherent tension between their social missions and prevailing market pressures. Using an institutional logics perspective, it analyses the competing demands from the social sector, which prioritizes measurable impact, and the market sector, which emphasizes financial returns. Through a detailed case study of a US-based impact VC firm, the study identifies the specific hybrid practices and organizational behaviors these firms adopt to balance these conflicting logics. It highlights the constant negotiation required to prevent “mission drift” and successfully integrate dual objectives.