Social Impact Investment.
We've all heard of it, but what does it really mean? How can it benefit a social enterprise like you?
How do you know when you're ready to approach a social impact investor?
We're here to help!
Below you will find resources, documents and articles informing you about
Social Impact Investing and what to do to make sure you're well positioned for it!
What is Social Impact Investing?
We like the following definition from the Global Impact Investing Network (GIIN) the best:
Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending on investors' strategic goals.
The growing impact investment market provides capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education.
There are four key characteristics found in the following slideshow:
What TYPES OF SOCIAL IMPACT INVESTORS exist?
There are different types of Impact & Investors, each with common investment motivators:
Banks, pension funds, financial advisors, and wealth managers can PROVIDE CLIENT INVESTMENT OPPORTUNITIES to both individuals and institutions with an interest in general or specific social and/or environmental causes.
Institutional and family foundations can LEVERAGE SIGNIFICANTLY GREATER ASSETS to advance their core social and/or environmental goals, while maintaining or growing their overall endowment.
Government investors and development finance institutions can PROVIDE PROOF OF FINANCIAL VIABILITY for private-sector investors while targeting specific social and environmental goals.
GETTING INVESTMENT READY RESOURCES
Perfecting Your Pitch
HEVA Fund from Kenya presented a workshop at Trade+Impact Summit & Trade Expo in September 2016. You can access their informative presentation here.
Practical Tips for Women Looking for Investment
Click here to access a great article from East West Bank, which give some practical tips when looking for investment.
What are Social Impact Investors looking for?
This article from Devex provides an interesting perspective on what social impact investors are looking for.
Here is an article with embedded links from MARs with more insight on what funders and investors are looking for from social enterprises.
How to Measure Impact
The GIIN provides a fantastic source of standard social, environmental and financial metrics used by impact investors. It's a good resource for organizations to explore how/if their current metrics align and identify potential areas for future measurement and evaluation of their social impact. You can find it here.
How to get Social Impact Investors to invest in your business
Click here to find an excellent article about how to prepare to get impact investors to invest in your social enterprises (Africa focused) with lots of listed resources, ideas and tips
ADDITIONAL eXTERNAL SITES & rESOURCES
Here are a variety of websites and additional resources which can help you to better understand Social Impact Investing: