Athensmed has placed social impact at the core of its investment activities. Through strategy work launched in 2024, the company has built a systematic model for identifying, measuring and developing, together with its portfolio companies, the effect its investments have on people’s health, wellbeing and the reduction of inequality.
Reducing inequality comes first
For Athensmed, social impact means promoting health and wellbeing and reducing inequalities in health and wellbeing that stem from people’s backgrounds. Investees are expected to operate in ways that:
- produce better health and wellbeing
- reduce inequalities in health and wellbeing
- promote effective and sustainable health services.
Of these, producing health and wellbeing is the most central. An impact on inequality does not require a specific target group, as a solution aimed at the entire population can also narrow the gaps. This definition guides both the selection of investments and what impact is measured and how.
From research to a repeatable process
As a continuation of the strategy work, Athensmed began a collaboration with Hilja Raunu, a Master’s thesis student at Aalto University. The thesis was advised by Kustaa Piha and supervised by Professor Markku Maula. The aim was to develop and pilot a practical process that an early-stage health and life science investor can use to identify, select and apply social impact metrics across a portfolio of very different companies.
The research combined a literature review, ten expert interviews and a comparison of three European health funds. The interviewees included investors, consultants and researchers. Workshops were also held with Athensmed and three of its portfolio companies.
The result was a seven-step process framework:
- investor’s impact priorities
- assessment of company readiness
- mapping the impact pathway
- selection of material metrics
- measurement logic and data responsibilities
- integration into portfolio management
- updating as the company develops.
A key lesson from the pilot was that the process itself is repeatable, while the metrics are developed company by company. Companies that already have data and measurement experience can move straight to selecting metrics. Others first need support in building their measurement readiness. Even so, it makes sense to include one metric that allows comparison between companies.
Impact on three levels
Athensmed examines impact on three levels:
- Individual level: Tracking the direct effect on people’s health and wellbeing, for example a reduction in anxiety symptoms.
- Company level: Measuring how many people the company’s solution reaches, for example through the number of customers.
- Societal level: Assessing the savings innovations can generate. For example, an effective outpatient service can help a child stay in school and avoid an out-of-home placement.
Metrics are selected company by company together with the portfolio companies, and their development is monitored.
Working together with experts
The impact strategy was built together with Abraca, a strategy firm specialising in impact. The practical measurement model, in turn, was developed in Hilja Raunu’s Master’s thesis for Aalto University and piloted with three portfolio companies. Athensmed’s founder and CEO Kustaa Piha also speaks actively on the topic. “By carefully considering impact targets and developing metrics, it is possible to create impact,” he sums up.
Images: Meeri Koutaniemi