Traditionally, philanthropy and wealth creation have been seen as two opposing poles. But this traditional notion ignores the fact that companies are major catalysts for change, for better or for worse. Human rights, corruption, education, social responsibility - companies have a strong influence on these issues. Companies immense potential to catalyze positive change is where impact investing comes in.
Sustainable Investment vs Impact Investment
Unlike conventional "sustainable" investment, impact investing goes beyond avoiding the worst offenders. Instead, with impact investing you can invest in companies that change the world in a positive way. We believe that impact companies can have also a better return than an average money-driven companies. It just may take a bit longer as patient capital doesn’t squeeze out profit at any cost.
How we see Impact Investing
More and more funds and companies claim to be “impact driven”. A new wave of investors is using impact investing to address some of the biggest challenges of our time - from climate change to water scarcity, from lack of access to healthcare to education and affordable housing. The goal remains with most to just make big financial profits and use the word IMPACT just as a marketing tool. We see it differently. We look for founders and visionaries who are battle-tested with technologies and products that disrupt broken systems. We also invest in founder who share our values and have a passion love their neighbors.
How we see disruptive ideas on impact investments
A company with an impact vision often has a technology or a product which is disruptive to the market. New products are not welcomed by existing market players because their profit will decrease. The market is programmed to make it difficult to take better and more sustainable products to market. This is why many of these disruptive, impact companies can’t raise enough funds, because many investors see the risk of not being able to fight against the existing market powers.
Impact changes the world
Investing into our impact fund is an opportunity for investors to make the world a better place and at the same time increase their wealth with an investment portfolio. We can and should invest in companies that create impact for the whole society. There is risk in attacking the status quo, but there is also reward.
Profits through Impact Investing: What can I expect?
It is a common misconception that you have to sacrifice financial returns if you opt for impact investing instead of traditional investing. Even if there are many Impact Investors who place the "Impact" or the effects above the financial profit, it is possible to have a positive effect without having to compromise on the profits. Today there is a lot of evidence that impact investing leads to higher profits than conventional investments.