The case for a new paradigm of AI risk analysis
Small Steps Vol. 78: Atlassian’s guide to decarbonisation 🌳; Global growth in impact investing 💰 ; and using AI to fight superbugs🐛.
Kick start
In the final week of March 2023, the Future of Life Institute made headlines with its open letter, signed by some of the biggest names in tech, calling on all artificial intelligence (AI) labs to “immediately pause the training of AI systems more powerful than GPT-4”. It cited the need to allow safety research and policy to catch up with the “profound risks to society and humanity” created by the rapid advancement in AI capabilities.
To help startup founders think about their approach to risk management, we spoke to Dr Kobi Leins, a global expert in AI, international law and governance, about how we should conceptualise this delicate balance. The discussion covered the case for extending the depth of our risk analysis lens including considering longer timelines and use cases affecting minority groups, defining company goals and creating a culture of safety in the business.
What we’re thinking about
🌳 Big corporates needs to step up on decarbonisation. Australian companies listed on the ASX are falling short in their efforts to achieve net-zero emissions by 2050, according to Morningstar. Out of 163 ASX-listed companies, only 15 have made explicit commitments to reach this target, creating a substantial gap between corporate goals and Paris Agreement targets. The analysis reveals that the companies with net-zero commitments tend to be smaller and less influential in terms of market capitalisation.
Stronger climate commitments are needed from larger ASX-listed companies to address the urgent challenges of climate change. As investors and stakeholders demand greater transparency and action on climate, it is crucial for companies to align their strategies with climate goals. Atlassian has issued its own guide on how companies can work towards achieving net zero in their workplace. It says companies face substantial blowback if the just use offsetting to claim they have achieved net zero, and also need to account for indirect emissions from employees working from home.
💰 Unleashing impact investing in private markets. Only five years ago, impact investing was a niche market. Today, according to the WEF, it's a roaring wave that’s only gaining momentum. Leading US GPs now offer impactful funds aligned with secular trends like energy transition and climate tech and are attracting progressive pension funds and foundations, proving that impact strategies can deliver strong risk-adjusted returns.
The market has responded enthusiastically, with double the number of impact funds and triple the capital sought between 2019 and 2021. Global impact investing reached $1.16 trillion in 2021, doubling in just three years. Industry standards, such as IRIS+ metrics and impact management principles, ensure consistency and transparency across portfolios. We’re excited to see this growth and be part of the growing demand for impact investment opportunities.
New paths
🏡 Trace is on the lookout for a Sustainability and Customer Success Specialist (Sydney).
🥔 Great Wrap is seeking a Sales Development Representative (Australia).
💊 Perx Health is on the hunting for a Director of Strategic Business Development (Remote).
🔌Switch Automation is searching for a Global Financial Controller (Denver, US).
🔥 Also, check out our Giant Leap Fund jobs board for over 80+ available positions or fill out our expression of interest form. There’s even more jobs at ethical companies on the global B-Work job board.
Giant leaps
🎉 Hex’s Jeanette Cheah is set to feature on a panel on workplace insecurities.
👏🏻 Modo CEO Peter Haasz featured on Balance The Grind.
For the road
🐛 Bots vs bugs. Researchers have used AI to find a new drug that can treat superbugs -- bacteria that are resistant to antibiotics. In this case, AI narrowed down thousands of possible drugs to just a handful which could be tested in a laboratory.
👶 Advice for fundraising with a newborn. Applied’s Khyati Sundaram says founders should be strategic with their timing, and build their business in a manner that it doesn’t grind to a halt when they step away. She also suggests testing the new with existing investors first, and using that feedback to guide how you brief (or don’t brief) future investors.
📚 Pitch deck perfection. Canvassing advice from across the VC Community, an article in The Australian has found that the second slide of a deck is often the most crucial in determining the quality of a deck. It differed by company, with some opting to outline the team or describe the market landscape, but it goes to show that when you are pitching investors lead with your strongest points. What does Giant Leap look for? Find out here.
🤝 Lessons on trust and transparency. Tripple’s latest annual report is a lesson in itself on investor transparency -- even though they admit they want to be even more transparent. While most reports front load the good news, funds strengths, but interestingly its weaknesses and areas for improvement.
📅 Save the date. Building on last year’s Anyone Can — an event designed for Aboriginal and Torres Strait Islander, Black and Women of Colour and non-binary people — Surviving and Thriving in Startups and Tech aims to leave all attendees invigorated and inspired to create their own business. It’s on July 13 in Sydney.
🚜 Keeping on events… Agritech accelerator THRIVE has its demo day on Friday June 23.
🐸 A leap ahead for Australian impact VC. Australia’s Leapfrog investments has become one in ten globally to make the cut in BlueMark’s global impact investing benchmark, achieving a perfect score.
🥑 Who wouldn’t want an avocado hat? The intersection between generative AI and art is becoming too big to ignore. So Melbourne artist Greyson took the plunge and asked them to design a Miss Universe outfit for each suburb; it led to some remarkable results.
👩 Are you a woman in climate tech? Sign up for this global speaker database and share your expertise!
🌍 A small act of kindness can go a long way. Research shows that we underestimate the impact it had on another’s mood.