Frog’s core focus is investing in European purpose-led Software Scale-Ups and providing them with world-class guidance to support them scale their business quickly and sustainably, and retain their focus on purpose. We call this Positive Growth Equity.
Customers, employees, partners and investors are becoming more discerning about who they buy from, who they work with and who they engage with. They want transparency on who they are dealing with and the impact that a company might be having on society at large.
Our approach to delivering Positive Growth Equity runs right through our business, from how we invest in our team, sourcing and selecting our investors and investments, to how we conduct portfolio management.
Developing on strong foundations
This isn’t a new direction for Frog. We have been a purpose-driven business since we launched, relentlessly focused on helping European software companies scale.
We have always prioritised ‘doing’ rather than ‘talking’, making sure our processes and policies are robust with commitment to continuous improvement.
Optimising frameworks and standards to deliver the Frog strategy
At Frog we combine our experience and expertise with a selection of best practice approaches to optimise them to fit our strategy and deliver a focused approach to the high-growth software scale-ups we invest in.
Team
Everything starts with our team. Our Positive Growth Equity DNA spreads across the whole team.
Principles
We are signatories of the PRI, and our sustainability assessment is based on SASB.
Frameworks
We use 2 key best practice frameworks: IMP and Scale-Up Methodology. The IMP is the Impact Management Platform overseen by representatives from OECD and several UN affiliates.
The Scale-Up Methodology is Frog’s own proprietary framework for evaluating businesses and supporting the companies we invest in. Find out more >
Investors
Frog manages funds from Limited Partners who encourage our approach and align with our values.
Companies
We are actively engaged in the companies we invest in. We go beyond the boardroom with a team of in-house operating partners who support a range of people in the companies we back to scale their business whilst maintaining purpose.
Partners
Following thorough research, we have adopted a core set of proven approaches and have then adapted them to address Frog’s specific growth equity software strategy and our particular emphasis on the ‘social’ element of ESG.
Delivering Positive Growth Equity
Investing in the Frog team’s expertise, consistency and passion for Positive Growth Equity
Frog genuinely walks the talk. Our principles for Positive Growth Equity run throughout our team as part of our DNA.
Investor alignment
Frog manages funds from Limited Partners who encourage our approach and are aligned with our values.
Sourcing & selecting purpose-led software scale-ups
Frog only invests in companies which it believes are making a positive contribution to society. Not ‘net neutral’, but a deliberately positive impact that can scale through the period of Frog’s involvement.
Enhancing impact through active portfolio management
Frog only works with management teams that have a clear and positive purpose about their businesses and believe that their purpose is a key driver to business value and who are open to working with partners like Frog to enhance their best practice approach to ESG.
Growing an impactful community
As a leader in investing into Scale-Ups, Frog sees that it has a key role in bringing purpose-led founders and leaders together to help them institutionalise their values, so they remain embedded in their businesses for the long term. Find out more >
Portfolio data tracking
Frog understands that picking companies making a difference in society is just the beginning. Monitoring key metrics that match the common values among Frog and the companies we invest in serves to compound the impact we make together.
Exit: RI & ESG Profiling and data preparation
Investing in purpose-led businesses and tracking meaningful metrics over the course of the investment period is important for optimising value creation. Making sure the journey after exit starts in the right direction is vital to delivering lasting impact.
How is Frog’s approach different?
Following thorough research, we have adopted a core set of market leading approaches and have then adapted them to address Frog’s specific growth equity software strategy and our particular emphasis on the ‘social’ and ‘governance’ elements of ESG, given the low environmental impact of the software companies we invest in.
The Scale-Up Methodology
Frog’s own proprietary framework for evaluating businesses and supporting the companies we invest in. This includes our operating partner programme with experienced specialists, our engaged portfolio management approach, content library and community.
PRI
Our approach to designing and implementing Frog’s ‘Responsible Investing’ has been based upon the PRI’s six principles. Frog Capital became a signatory to the PRI during 2021.
IMP
Our sustainability framework is based upon the Impact Management Platform (IMP). Overseen by the IFC, OECD, UNDP, UNEP FI and UNGC, the IMP supports fund managers to help them assess and manage their sustainability impacts through a well thought through and logical framework.
SASB
Our Sustainability assessments are based on SASB. Formed by five leading framework and standard-setting organisations (CDP, CDSB, GRI, IIRC and SASB), the SASB Standards are being seen as the dominant approach. We have taken these standards and adapted them for scale-up software companies.
Metric
We use a software tool called Metric for our ESG data collection. This enables us to personalise the appropriate and relevant data that we require, and not to overload finance teams with unnecessary data requests.
DiversityVC
To support our own focus on Diversity, Equity and Inclusion, Frog is an active part of the DiversityVC community and is certified by their standards for recruitment and HR management. DiversityVC is an organisation working with the innovation and investor community to create an industry free from bias.
Inhabit
Inhabit is a specialist in the built environment with a particular focus on carbon footprint and have advised Frog on improving its own carbon footprint.