What Is Impact Investing?

Impact investing is an investment in startups that can generate a social or environmental impact in addition to a financial return.  

It can be done anywhere and at any stage of business.

Impact investing includes not only angel investors, but also family offices, pension funds, wealth managers, foundations, and religious institutions. 

Impact investments provide market-rate returns or sometimes less than the market.

It seeks to solve challenges in areas such as renewable energy, microfinance, climate change, housing, education, and more.

Impact investors look for their investment to make a measurable difference.

Impact startups need to show their performance goals related to the industry standards.

Monitor the performance against the targets and report the results to the investors.

Startups should have not only financial metrics but also impact metrics.

Impact metrics show the social or environmental results.

Many impact startups appear to be non-profits showing a social cause but no investment return.

Impact startups need to show both.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.