As a entrepreneur you have to think as well about your savings. How to put them aside your pension? Investing in impact businesses as part of taking care of your savings went from niche to mainstream in the last years. It gain popularity as it makes it possible to align your values with the investments you are doing.
So what is it?
Impact investing is a type of sustainable investing strategy where an investor seeks financial returns alongside a measurable positive impact on society or the environment. You can invest directly in a company, or a fund or project. Mostly these companies are working on one of the SDGs and you will be able to see where their specific impact is to be suspected.
By investing in impact businesses you leverage the power and influence to encourage businesses to do business while doing good. Especially for early stage businesses or those in less developed countries with difficult access to capital, you can make a big change. But also for the multinationals it is a show of support of their (new) mission.
It’s not philanthropy
There is a fundamental difference between giving money and investing money. Impact investing has the dual goal to making a profit and creating positive social or environmental change. While philanthropy is about giving the money to make a change.
*disclaimer: this article is for informational purposes only and not intended as financial advice. All investments comes with risk.