Your guide to impact investing
What is impact investing anyway?
It's when you seek to invest into a business or a venture that has an explicit ambition to do business in a way that respects people and the planet, and when the products and services of this business - as well as their relationship with suppliers are also socially and environmentally conscious. Ideally, the business tries to create a solution to an unresolved problem and makes its products and services accessible - serves the underserved groups of population. Well, this is the elevator pitch. To get started in defining what matters to you, what positive outcomes you want to contribute to, imagine a sustainable and equitable future. Then think about what enabling factors made that future possible. Based on that, think about what topics are closest to your heart: is it gender equality, empowerment of women, access to education, protecting wildlife or forests? For inspiration, take a look at the UN Sustainable Development Goals.
The Rockefeller Foundation issued a report recently on the Individual Imperative: Retail Impact Investing Uncovered. A good read that will hopefully trigger lots of innovation.
Why startups?
Simply because they need money the most and they are in toughest position to get access to it. And if you are aware of this and you know about a startup that has a great product, a committed and savvy founder and you have some money you could temporarily miss, this might just be a great win-win.
It's handy for you to think about the type of funding you'd like to provide, take some time to read about the pros and cons and the legal setup of each. Or ask us for some guidance.
A handy paper on the main risks of impact investing issued by Bridges Ventures can be found here.
In the Netherlands
An overview of crowdfunding platform available in the Netherlands: Crowdfundmarkt
Oneplanetcrowd - sustainable crowdfunding platform based in the Netherlands
PYM the conscious investors' community
LendAHand - well, it's not location specific. Listing of investment opportunities in emerging economies (in which you provide a loan / debt)
Several banks offer sustainable investing opportunities, like ASN, Triodos, Evi van Lanschot, Van Lanschot Kempen, ABN Amro and others. Although these solutions are not quite targeting the impact startup community
An excellent webinar on what VCs look for in founders. Even though you might not be a VC, a useful resource.
Around the world
TONIIC global community of asset owners seeking deeper positive net impact across the spectrum of capital.
MyFairMoney, a platform launched by the 2DII (2 Degrees Investment Initiative), focusing on Europe and on more liquid asset classes. So not specifically on impact investing, but still, a useful resource with short videos, explanations, fund searches and more.
The BigExchange - a UK based platform that enables investing in liquid funds that have an explicit positive outcome target.
Read some useful tips on investing from the Motley Fool, about early stage professional investing and understanding the landscape from Startup Europe Network (Central and Eastern Europe), Maze Impact (Portugal), Zebras Unite (Global cooperative network). Once you scratch the surface, you will come across courses, clubs, VCs, podcasts, all kinds of resources you can pick and choose from to create the information flow and exchange that suits you best.
Measuring and managing impact
A very important part of impact investing is understanding what impact you'd like to contribute to, establish how to measure it and once your have some clear objectives, form an opinion on managing impact. To help with this, the Impact Management Platform has been established. It contains lots of useful and user friendly resources. And a really nice Coursera course on impact management and measurement is available free of charge here.