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Purpose Erosion Tracker

Track gradual dilution of investment mission across fund lifecycles

SF ExplainerView Paper

Purpose Erosion: Impact funds rarely fail spectacularly—they erode gradually. Small compromises accumulate: metrics get easier, timelines shorten, stakeholder voice diminishes. This tracker identifies erosion before it becomes irreversible.

Fund Lifecycle Stage

Erosion Indicators

Priority Drift

narrative

Gradual shift from mission-first to returns-first language

Returns mentioned before mission in reports
No erosionSevere

Metric Substitution

measurement

Impact metrics replaced with easier-to-measure proxies

Outputs reported instead of outcomes
No erosionSevere

Temporal Compression

temporal

Fund lifecycle shrinking below mission timescales

Exit pressure overriding long-term impact
No erosionSevere

Stakeholder Dilution

governance

Beneficiary voice decreasing relative to investors

Advisory boards losing influence
No erosionSevere

Structure Weakening

structural

Mission protections being quietly modified

Governance docs amended to add flexibility
No erosionSevere

Key Insight from SF Theory

Purpose erosion is often invisible until it's too late. Each small compromise seems reasonable: "just this portfolio company," "just this quarter," "just this exit." The cumulative effect is mission drift by a thousand cuts. Regular tracking catches erosion while structural fixes are still possible.