Connecting Impact Investors and Companies

As impact (responsible) investing has become increasingly mainstream in the public markets – mutual funds, ETFs, 403(b) plans, and so on – a parallel market for private investment has naturally emerged. The number of channels and mechanisms for connecting financing with companies – platforms, as it were – is significant and looks at this point quite fragmented. See the terrific graphic above from Triple Bottom Line Investing for illustration of this point.

Each of these organizations around the world has its own approach to connecting people and their capital with companies and individuals doing great things and hoping and planning to grow investor capital. These mechanisms include crowdfunding, funding by wealthy individuals and family offices, VC-like pitch meetings, and more.

This is an exciting development, for sure, and also has the effect of complicating navigation of these waters for people seeking capital. Equally so for the platforms seeking the best opportunities for making investments. It does neatly emphasize for all the need for crisp, clear messaging in this increasingly popular space as all participants must be able to clarify and quantify precisely who is doing what to who, how, and to whose benefit.

 

 

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