Welcome to a new era where Investing for Impact is driving the evolution of finance.
A brighter future hinges on our collective ability to efficiently allocate our limited resources in a way that yields the best possible blend of financial returns and social and environmental impacts.
Society is making great strides in this direction, but existing methods still lack the coherence and impartiality needed for greater success. By accelerating enhancements in how capital is allocated, we can catalyze a more promising, sustainable future for all.
In pursuit of this vision, over the past three years we embarked upon a journey of exploration, learning, and experimentation at the intersection of the worlds of impact and investment.
This experience has granted us invaluable insights into what distinguishes the most effective strategies from the rest.
We're excited to share with you the three principles we believe are essential for coherently investing for impact.
Be Scope Sensitive: Consider the magnitude of impact across all of its dimensions.
Account for Crowdedness and Scalability: Seek opportunities that are not overly saturated and that possess immense room for more capital.
Consider Opportunity Costs: Compare the impacts of an opportunity to the cost needed to generate the same impact with highly-effective benchmark opportunities.
Each of these points is critical to assessing both impact and financial returns.
We encourage both existing and prospective 'investors for impact' to actively adopt these principles and we are seeking like-minded partners to apply them with at scale.
To facilitate the application of these principles, we have developed the concept of 'Impact Returns'. This powerful metric encompasses the above three principles and allows for a coherent comparison to traditional financial returns.
With Impact Returns you can validly say things like:
For those interested in the deep academic rigor behind these insights, our comprehensive technical paper is available here.
We are actively seeking visionary partners who share our unwavering commitment to investing for impact and who have the ambition to collaboratively build a venture that propels the industry forward.
Join us in our mission to shape the future of investing for impact and make a lasting difference in the industry.
For inquiries and collaboration opportunities, please reach out to us at email@example.com.
Nancy de Ruiter