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Equity & Impact Investors
Tuesday, June 19, 2018

Impact funding is often referred to as funding companies with a “second bottom line.” Venture capitalists and angel investors who choose to support businesses that foster social benefit are called impact investors. They make individual investments in impact companies or they form entire groups or funds that focus solely on impact investing.

It’s exciting to see growing evidence that indicates that impact investing supports the conventional bottom line with better returns for investors. In other words, investments in impact companies are returning higher ROI to their investors than companies that don’t take into account the social impact of their work.

The value of double bottom lines is worldwide, Andy Rabens at US State said “Economic prosperity is critical to national security and entrepreneurs build economic engines.”

That said, the economics of investing for social impact have to make sense to investors. Hardly a charity operation, investing is a financial activity and solid returns are critical to the equation.

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