Friday, March 27, 2020 by Manav Narang (Hatcher+) 2,083 Views
'Impact investing' has been a buzz word for quite a while now and has multiple definitions and schools of thought. Call it ESG investing (based on the Environmental, Social & Governance principles), SDG investing (based on the UN's Sustainable Development Goals) or simply, ethical investing, it aims to solve problems and positively impact the society in one or more ways.
Investing for impact has been around for a long time and has positively touched millions of lives. From a financial returns point of view, however, it hasn’t had the best rapport till now.
Well, the 1990s craze around sustainable investing didn’t live up to its expectations so how is it going to be any different today?
It is going to be different because the world has changed considerably in the past two decades. The 'concern' for environment conservation back then has today transformed into a heightened alarm with issues such as climate change, plastics pollution, loss of biodiversity, deforestation, social inequality and water shortages that have become very real and tangible threats to our planet and our survival.
So, if there is a financial vehicle out there that doesn’t take into consideration one or more dimensions of ethical investing, their investors, partners and employees, let alone the governments and non-profits will raise serious concerns as to why not!
Let's make it clear - impact investing isn't about giving away money or doing things strictly for social good. It really is about investing funds to do good while improving returns and ensuring healthy diversification.
The VC Impact Investing spectrum (as outlined above) helps actively filter out investment avenues that harm or are detrimental to social impact. Furthermore, the selection and due diligence process follows the same steps as for any other VC investment and is more rigorous to ensure positive impact over the long run.
Manav is a seasoned professional with experience in social impact, operational strategy, transformation and strategic initiatives. After leading teams and functions for almost a decade across various divisions, companies and geographies, Manav is currently pursuing his MBA from the NUS Business School in Singapore. He represents the NUS MBA cohort as the President of the Students' Council and is working with Hatcher+ as an impact investing advisor.
The Best Investor Deck Ever|
The Most Unrewarding, Misunderstood, Underrated Job on the Planet|
The First 100 Are Funded!|
Venture Capital Simplified - The Rule of 5X|
The AI-Powered, Highly-Automated, Global-Diversified, Exchange-Tradable VC|
|John Sharp (234)|
|Wissam Otaky (11)|
|Dan Hoogterp (4)|
|Manav Narang (3)|
|Stephen Fisher (1)|
|My Five Years in Space|
|Triple Your Bottom Line|
|An Activist Signals MPT is Coming to VC|
|The Hatcher+ H2i Impact Initiative|
|VC Impact Investing: A Primer|
|Looking for the Inflection Point – Tracking COVID-19|
|Keep Calm and Carry On Investing|
|Using AI to Match Investors and Entrepreneurs|
|50 Surprising Facts We Learned From Our First 100 Investments|
|The First 100 Are Funded!|
|The Power of Venture|
|US Immigrants Are Vital To VC Returns|
|Hatcher+ v2.0 Release|
|The Golden (Selection) Ratio|
|The Time-Traveling VC|
|We Created a Venture ETN - Here's Why|
|The Crane's Neck - Using Data To Improve Startup Portfolio Construction|
|Leveraging industry expertise – best practices from the accelerator universe|
|8 Easy Places To Start Up|
|Your Startup Should be in an Accelerator|
|impact investing, ESG, SDG, ethical investing|