Kim Kolt Of Bay Bridge Ventures & Ventures for America: 5 Things I Need To See Before Making A VC Investment
We’re in a world where many people lack meaning, and this lack of meaning is directly linked to a mental health crisis. If you can find meaning and a cause that resonates with your heart and spirit, you’ll excel in your endeavors and find greater happiness, all while making the world a better place. I would also emphasize that this is not just a nice-to-have, but a need-to-have. If we don’t initiate this change, there will be dire consequences in our near future, within our lifetimes. We’re already witnessing the devastation of climate change, with significant loss of biodiversity. Additionally, it will result in a surge of refugees and individuals in developing countries who lack essential resources. Neglecting mental health will push us back into a world where survival becomes the primary focus for many.
Fortunately, we have a unique opportunity to shape the future using tools that we’re only just beginning to comprehend. These tools are advancing rapidly, and if you’re not actively exploring them, you risk being left behind. So, for numerous compelling reasons, it’s important to consider making a positive social impact.
I had the pleasure to talk to Kim Kolt. Kim Kolt is a San Francisco-based executive with a distinguished career in entrepreneurship, venture capital, and investment banking. She is a co-founder and general partner at Bay Bridge Ventures, a firm committed to investing in scalable, profitable, and impactful technology companies poised to address global environmental challenges. Bay Bridge Ventures, established in 2022, is an institutional ESG and climate-focused venture capital firm known for its robust impact reporting process and commitment to inclusivity.
Prior to Bay Bridge Ventures, Kim founded For Good Ventures, an impact venture capital fund derived from her family office in 2015. For Good Ventures was devoted to investments in areas such as clean tech, climate technologies, health, education, and financial accessibility for underserved communities. Her belief that future successful companies must address critical environmental and societal issues formed the cornerstone of the venture’s investment philosophy. This approach saw success much quicker than anticipated.
Kim’s impact extends beyond her core investment strategy at For Good Ventures. She has been instrumental in advising the formation of other impact funds and their reporting mechanisms. She has also consulted for other family offices looking to adopt similar investing frameworks. In the spirit of collaboration, Kim has invested in several impact funds and accelerators.
Before embarking on her journey in impact investing, Kim worked at Goldman Sachs in their Technology, Media, and Telecom Investment Banking Groups in San Francisco and Los Angeles, as well as the Deutsche Bank Mergers & Acquisitions Group in NYC. She is a Cornell University’s School of Hotel Administration alumna and holds an MBA from The Wharton School at the University of Pennsylvania. Additionally, Kim has earned designations including USGBC LEED for sustainable development, CCIM, and Series 79 licenses.
Kim’s roles extend to board memberships and early backing of companies such as Turntide Technologies and Legends of Learning, as well as the Sustainable Ocean Alliance, a non-profit accelerator. She is an advisor to numerous impact-focused companies, funds, and nonprofits. Kim is a member of Nexus, X-Prize, Gratitude Railroad, and serves as a Penn Venture Labs Judge, RK Mellon Foundation Impact Judge, and has contributed to classes in sustainability and impact investing at both Berkeley and Stanford .
Adding to her long list of accomplishments, Kim was recently appointed to the national board of directors for Venture For America (VFA), a national nonprofit and two-year fellowship program for recent college graduates pursuing entrepreneurial careers. Her unique professional experiences and perspectives are expected to be invaluable in supporting the board’s mission of increasing organizational awareness, ensuring entrepreneurial diversity, access, and inclusion, and contributing to the growth of diverse ecosystems across American cities. Kim’s enthusiasm for this new role is clear, as she stated, “I couldn’t be more excited to join in the great work of Venture For America. I look forward to working with the team to build on its achievements and expand impact in our ecosystems.”
Yitzi: We’d love to hear about your origin story. Can you share your childhood story and how you grew up?
Kim: Sure thing. I was born and raised in Hawaii, and that had a big impact on shaping my sensitivity towards the environment and our connection to it. Even as a young child, I dreamt of becoming a marine biologist because I had this immense love for the ocean and a deep appreciation for animals and nature.
Despite my passion, I ended up pursuing a career in finance. Growing up in Hawaii, finance was a foreign concept to me. My family has a background in hospitality and transportation, so when I went to Cornell for my undergraduate studies, I decided to attend the Cornell Hotel School.
However, I didn’t let go of my interest in science. I took various electives such as atmospheric science and oceanography. But what fascinated me was the world of capitalism and how it operated and controlled so much in the world. I wanted to understand it better and learn as much as I could.
Being a naturally curious person, I spent time in the notoriously difficult world of investment banking, starting inMergers & Acquisitions at Deutsche Bank’s NYC Wall Street offices . This role allowed me to dive into a number of different industries, and required getting up to speed quickly in each, including understanding how their business models worked, who the major players were, etc. I learned about what factors contributed to their success or failure.
This experience laid a solid foundation for what I’m currently engaged in, which is investing in climate-related solutions and technologies that address environmental and humanitarian issues. It took a long journey to return to what mattered most to me, but I believe it was both worth it and necessary to be better at what I do now .
Yitzi: That’s great. Can you share a bit about the ventures you’re working on to promote climate justice and sustainability?
Kim: Sure, let me continue a bit further down the journey of how I got here because I think it ties into what I’m doing now. I obtained my LEED certification in new construction, which allowed me to provide advice to some hotels and resorts in Hawaii that were under development.
In addition to my role as an investment banker, I attended the Wharton school at the University of Pennsylvania for business school and joined Goldman Sachs’ technology investment banking group afterward. During my time there, I witnessed how rapidly growing technology companies were completely transforming the world. In 2015, I made the decision to leave because I became acutely aware of the climate crisis and the urgent need to address it.
I was keenly aware of the limited time we had to solve climate-related disasters before losing a significant portion of global biodiversity, including our coral reefs and natural ecosystems. Around that time, I also wanted to align my own financial portfolio responsibly and learned there were not any quality financial products that took a role in traditional diversified portfolios while, at a minimum, not contributing to the climate crisis. It’s unbelievable to think now that this option to “do no harm” in one’s financial portfolio was an outlandish idea in finance then. I also thought if managed financial products could show equal or better returns by taking an active stance on these issues, the largest stewards of capital, fiduciaries, could participate; that could make a significant difference very quickly.
Engineering diversified financial portfolios was not my area of expertise within finance, but rather advising and adding value to companies directly was. That is when I decided to found For Good Ventures, where I personally felt I could add the most value. The most impactful approach in the shortest amount of time seemed to be accelerating companies with technologies that had the potential to solve these problems in an exponentially scalable way, like I saw at Goldman. If the investments returned the initial capital plus a profit, it could be redeployed over and over in increasing larger amounts.
I felt that there was also a fundamental missing piece in impact investing to date — a lack of compelling returns. In the past, many foundations donated money to this category, but they viewed it as a concessionary investment category. In other words, investment performance was secondary to the mission, given these funds were designated as non profit donations anyway. To get capital back was nice, but not essential. This unintentionally caused the fiduciary investment community to stay away from impact investing products because the poor relative returns and inconsistencies prevented them from deploying capital into these strategies. Fiduciaries must provide the highest returns for a given risk level. To do anything less was compromising the retirement and therefore the lives of their constituents (for example, teachers, police, firemen). At a minimum, the returns had to be the same or greater and the risks of capital being returned had to be the same or lower. My goal was to prove that achieving superior returns consistently was possible by identifying technologies, founders and business models that could deliver outsized returns as well as fundamentally solving a problem for humanity or the environment. Additionally, I thought if this concept held merit, it could attract other capital.
For Good Ventures directly invested in a number of companies, ranging from late seed to series B as an entry point. We later explored credit vehicles, providing credit with warrants and debt-equity hybrids, which performed exceptionally well. Lastly, we engaged in a fund-of-funds model, where we invested in other funds created after our inception, aiming to support emerging and diverse managers.
Fortunately, there were many tailwinds in 2015 that accelerated faster than I anticipated. We supported numerous climate-related companies and expanded into health, education, and inclusive capitalism. We backed several early-stage companies that ultimately achieved great success, with many of them experiencing exits or raising significant funding in later stages. This track record over time led me to consider partnering with two incredibly talented individuals who possess complementary skills — Andrew Karsh and Joe Blair. Together, we formed a new fund called Bay Bridge Ventures, which we recently launched. The fund incorporates all the advantages, rights, and information obtained through For Good Ventures over the past eight years in climate technology.
So, that’s what I’m currently working on personally through For Good Ventures and with my partners at Bay Bridge Ventures.
Yitzi: Can you share with us a story of the company that you’re most proud of?
Kim: Sure, let me talk about a few companies that I’ve been actively involved with as a board member or observer. These companies have shown remarkable growth over time, which aligns with our investment thesis.
One company that stands out is Turntide Technologies. We invested in this company because they are transforming electric motors and the power control systems around them. They hold over 200 patents for the world’s most efficient motor called a switched reluctance motor. Additionally, they have a suite of synced reluctance motor technologies. I won’t delve into the technical details now, as it would take some time, but you can research them if you’re interested.
Their focus is on making everything that relies on a motor, pump or turbine substantially more energy efficient. HVAC systems, nearly all vehicles, pumps, fans, etc. Approximately 50% of the world’s energy is consumed through motors, turbines, and pumps. The potential impact is immense. They primarily target three main verticals. First, they replace motors and systems in buildings, leading to significantly lower energy consumption and quick return on investment. Second, they electrify various modes of transport, including electric vehicles. However, their biggest opportunity lies in providing inverters, motors, and power control systems for hybrid vehicles, as well as non-traditional vehicles and equipment like mini excavators and boats. They even supply high-performance vehicles like Aston Martin.
What excites me about Turntide Technologies is their exponential growth. They are expanding rapidly, facing the typical challenges of companies that have some hardware along with their software, such as supply chains, scalability, and capital expenditure. However, they have handled these challenges exceptionally well. As a result, I have the privilege of sharing board seats with top firms in the climate-related technology space.
Another company that I’m genuinely enthusiastic about is Legends of Learning. We have invested in both their debt and equity. They specialize in providing high-quality educational games for K-12 math and science. Their software, akin to a metaverse platform, is tailored for district schools, which are notoriously challenging to sell to but are also the stickiest of customers. Once their software is implemented in a school district, it becomes deeply ingrained.
Legends of Learning has millions of students using their software. They have discovered that experiential learning through play is incredibly effective for children with disabilities or those with ADHD, as well as for students who have different learning styles. Even students who typically learn through traditional means benefit from the interactive nature of the software. Teachers can assign additional tasks or offer extra credit through the platform. Notably, both students and parents use the software extensively outside the classroom. The students develop a strong attachment to their avatars and engage in collaborative, communicative, and social activities beyond the traditional classroom setting.
I see Legends of Learning as an educational lifeline, especially during the COVID-19 pandemic. It provided access to education for many students who couldn’t physically attend school but had internet access. While the availability of Wi-Fi was a bottleneck for some, it still served as a valuable tool for keeping students engaged and I’m excited to see how they continue to expand.
Yitzi: Can you share a bit about your collaboration with Ventures for America?
Kim: I was introduced to Eric Somerville and Venture for America through a close friend of mine, Dory Goulkins-Smith. She and I went to Wharton together, and later she started a fashion company, sold it, and then became the interim CEO of Venture for America. Now she’s the chairman. When she made the transition, she knew they were looking for more diverse and value-add board members. She presented the opportunity to me because she knows I’ve been working a lot in this space. Venture capital, inclusivity, and providing access to underserved communities are all integral to For Good Ventures’ thesis and part of my mission as well. So personally and professionally, I saw alignment with what the organization was doing. I met with Eric and a couple of other board members to discuss further. One of the things I like to do with the people I work with is request a thorough and clear understanding of not just the current state of Venture for America, but also its potential, goals, and the best way to position the company in the long run. I believe Eric is doing an excellent job rebranding the organization and realigning it with the most potential and value for the stakeholders it serves and will serve in the future. I listen, learn, and ask hard questions about how we will achieve those goals. I believe that post-COVID, communities are craving connection more than ever. Many people haven’t returned to work, and that connection is crucial. This is especially important for young people who have had limited years as adults and haven’t had the same work experiences they would typically expect due to remote work. Many of our youth leaders are in college or beyond, at a pivotal point in their lives. It’s essential for them to meet people, have in-person interactions, and learn on-site to develop a different skill set. I believe it’s one of the best ways to learn and build connections. Therefore, I strongly support increasing the number of in-person events in the cities where Venture for America operates. We have a significant number of alumni that we can engage with.
Yitzi: Alright, so here’s our signature question that we ask in all our interviews. Can you share with our readers the five key things you look for before making a venture capital investment?
Kim: The first requirement is scalability. It’s crucial that the technology or company has the potential to grow significantly, while also making a meaningful impact beyond its business objectives. We don’t invest in companies that simply contribute a small portion of their profits to a cause or organization. The company itself, through its business offering, should be addressing a fundamental problem for the environment or humanity, and utilizing technology to do so. That’s the core of our investment strategy.
Now, let me break down the five aspects I consider:
- Scalability,
- product-market fit,
- traction (which can be combined with product-market fit),
- nimbleness or ingenuity
- and lastly, tenacity.
If we’re talking about the general qualities of a founder or company, those are the ones I look for.
Yitzi: Okay, this is our final question. If you could tell other young people why they should consider devoting their life to making a positive social impact on the environment or society, what would you tell them? What would you say to them?
Kim: There are many reasons to do so.
Firstly, we’re in a world where many people lack meaning, and this lack of meaning is directly linked to a mental health crisis. If you can find meaning and a cause that resonates with your heart and spirit, you’ll excel in your endeavors and find greater happiness, all while making the world a better place.
I would also emphasize that this is not just a nice-to-have, but a need-to-have. If we don’t initiate this change, there will be dire consequences in our near future, within our lifetimes. We’re already witnessing the devastation of climate change, with significant loss of biodiversity. Additionally, it will result in a surge of refugees and individuals in developing countries who lack essential resources. Neglecting mental health will push us back into a world where survival becomes the primary focus for many.
Fortunately, we have a unique opportunity to shape the future using tools that we’re only just beginning to comprehend. These tools are advancing rapidly, and if you’re not actively exploring them, you risk being left behind. So, for numerous compelling reasons, it’s important to consider making a positive social impact.
Yitzi: Our last question: how can our readers keep up with your work?
Kim: Oh, please follow me on LinkedIn. I’m quite active there. Just search for “Four Good Ventures,” which is my family office and the venture I’ve built over the past eight years. Babridge Ventures, my two partners, Andrew Karsh and Joe Blair, are absolutely phenomenal. They’re much more interesting than I am. Feel free to reach out to me directly if you think you have companies that align with us. We’ve invested in several funds, and we’re always happy to make introductions if it’s not a fit for us. Our goal is to create a community of like-minded individuals, so please don’t hesitate to reach out.
Yitzi: Kim, thank you so much for this truly inspirational interview, and I wish you continued success. Your work is truly remarkable.
Kim: Thank you so much.
Kim Kolt Of Bay Bridge Ventures & Ventures for America: 5 Things I Need To See Before Making A VC… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.