Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return. Impact investing has the potential to be a trillion-dollar market by 2020.
A growing number of fund managers, venture capital firms, angel investors, corporate venture capital groups, family offices, institutional and individual investors, and foundations are investing for impact.
Different investor types have different motivations for impact investing. However, there are several common traits that investors seek.
Arguably, the most important – and difficult – part of impact investing is measurement and evaluation of social and environmental impact.