Impact Investing Update
Original Air Date: June 18, 2018
There is growing evidence that indicates that impact investing supports the conventional bottom line with better returns for investors. In other words, investments in impact companies are returning higher ROI to their investors than companies that don’t take into account the social impact of their work.Early VC firms seeking for-profit companies that provided a social benefit were largely investing in environmental sustainability. There were notable exits: Tesla, SolarCity, NestLabs and 7th generation. Since 2001 such companies have invested $13 billion, and $10 billion of that since 2010. The trend emerging is funding not verticals, but demographics -- underserved races, regions and economic levels, like TPG Ventures and Breakthrough Energies, both with backing from Bill Gates, among other leaders. Anne and Gillian take a closer look at impact investing in 2018 and reflect on what they have discovered. What is the ‘double bottom line’ and why is it important? How does entrepreneurship support national security? Who are the leading impact investors active today? What does this mean for founders?