We’ve all heard such terms as “social entrepreneurship,” “conscious capitalism,” and “social investment.” Impact investing is part of the same philosophy, meaning that the process provides money for companies and projects meant to benefit the society and the environment — with financial gain.
It’s not cut from the same cloth as other types of investment, but rather serves as an alternative — with its own set of merits, hurdles and how-to guidelines — that is making great strides toward mainstream and has the ability to positively influence human progress. It is also changing the landscape of business practices and philanthropy as we know it.
What is impact investing?
“Impact investing is a spectrum. It means different things to different people,” notes Tony Abraham in his article for Technical.ly Baltimore. The articles praises Brian Trelstad’s (who is partner at Bridges Ventures, a fund manager company specializing in sustainable and impact investing) January 2016 guide in Harvard Business Review on the kinds of impact investing, but still calls it a “wonky breakdown.”