🚀 Is 'impact venture' a contradiction?
Founders Factory
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Conversations around impact investing often lead to a paradox. On the one hand, traditional investors might think that impact investments trade off profit in favour of ‘doing good’. At the same time, can an investment be considered impactful if it generates reasonable profits?
This sense of contradiction comes down to a fundamental misunderstanding about impact ventures. Why can't a business generate profit and have sizeable social impact?
FF venture designer Alexandra Simmons , in today's Startup Bulletin, addresses four key misconceptions that exist around impact ventures and impact investing. These include:
Read Alex's insights in the latest Startup Bulletin, out now. Also in today's newsletter:
Anything we've missed in this month's newsletter? Let us know below.
Econo-Logist - Bridge Builder - ESG Lead
8moMaybe balancing Quantitative & Qualitative metrics, Good & Bad, Feminine and Masculine energy, it might be more about individual balance for collective equilibrium where impact is a natural outcome rather than an unachievable goal...
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8moImpact investing can bring a positive impact with good returns. I have invested, at least, more than 10 profit-for-purpose startups on Crowdcube. I would claim that "impact" is a term, while the user scenario and business model is the key, just like other kinds of businesses.
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8moimpact investing is 90% of the time a loss function never gets applied for optimisation