Society & Community Sustainable Development Policies & Frameworks Financing for Sustainability Equity Financing from Equity & Impact Funds

Impact investing can actually unlock enormous good

Equity Financing from Equity & Impact Funds

Summary

Impact investing is a field with enormous potential for good despite the risks that it must be held accountable for.

Perspectives and insights

  • Half of all impact investments are in developing nations, demonstrating its potential to level the playing field not just between people and geographies.
  • 45 countries have adopted public frameworks for impact investing and 20 have created legal definitions for “social enterprise.”
  • Many funds do not simply treat social impact as a label to be slapped on after a financial return is made; rather, social impact is considered to be more important than profit.

Xoologue - a discussion between Xoo and Moo

Moo: I’d rather be a venture capital investor than an impact investor, Xoo.

Xoo: Why such a sudden affiliation towards a set of investors you normally don’t hold in high esteem, Moo?

Moo: I admit that I have my grudges against venture capital companies - they care only about money with the sole focus of their life being how they go about multiplying their investment value.

Xoo: And yet, you suddenly prefer them to impact investors who should appear like saints to you compared to venture capitalists.

Moo: Because a venture capitalist's job definition is more clear, Xoo - just make money. Impact investors may be good Samaritans, but which side of the coin should they bet on – the money side or the impact side – when they invest?

Xoo: I presume a portion of their investment goes for impact and the other portion for returns.

Moo: And how will they know which portion goes for what, Xoo?

Xoo: It's not everyday that you stymie me with a question, Moo, But today is one such.