Impact investment is a growing piece of the financial puzzle. While definitions vary widely, investment aimed at positive impacts for society (including social, economic and environmental attributes) is estimated at $25B globally — and increasing at double-digit rates. Numerous projects and start-ups are creating investment opportunities for “social value” while returning some financial value – in many cases, returning “slow money” or “low money” but not “no money.” In the long term, generational shifts in both entrepreneurial and investor values are helping this growth, adding more willing players on both sides of the financial equation who want to invest in both value and values. In addition, reduced government effort leaves even more gaps to be filled by private means pursuing public ends.
Getting this puzzle to fit together is challenging, though. This is an asymmetrical puzzle: investors tend to represent more established money and institutions, focused on risk and reward. Entrepreneurs tend to be newer, smaller, and more nimble, focused on ideas and innovation. Investors and entrepreneurs often have different visions of success, different time frames in mind, different metrics and frankly may speak different languages.
Nadler Strategy supports entrepreneurs and investors in the world of impact investment. Specific services include:
- Working with entrepreneurs and investors to create new partnerships
- Advising entrepreneurs on strategies for growth to achieve both social and financial outcomes
- Working with investors to ensure desired outcomes
Examples (references available upon request):
- Advised for-profit social impact start-up spun off from non-profit
- Advise project to attract new private-sector investment in coastal zone preservation and restoration
- Created and chair Mission Board for social impact start-up, complementing Management Board’s focus