What is Impact Investing? What You Need to Know

By September 26, 2019 General
what is impact investing?

Here at CLC Global Advisors, we speak often about impact investing. If you are new to this world of generating a financial return while also having a positive impact on social and environmental factors, you may need a little more clarification. Today we’re going to provide that clarification to you whether you are a potential investor or a founder of disruptive technology.

What is Impact Investing? What You Need to Know

Impact Investing Defined

When we talk about impact investing, we are talking about investments that are made with the intention of generating a financial return as well as having a positive and measurable environmental and social impact.

What is the Significance of Impact Investing?

Impact investing is a chance to invest in new and diverse opportunities rather than the more traditional investment opportunities providing a chance to broaden their portfolio. Then there is, of course, the more obvious significance of having an impact on social and environmental issues.

What Type of People Make Impact Investments?

Who is making impact investments? Anyone and everyone is and can make impact investments from individuals to groups to institutions. It is important to note, however, that most impact investment opportunities are only open to individuals who have a particularly high net worth and are able to make investments at an institutional scale.

What Kind of Return Can You Expect From Impact Investments?

The financial return on impact investments varies but research has shown that impact investors have experienced returns on their investments that meet as well as exceed their expectations.

What Are Some Examples of Impact Investment Opportunities?

The opportunities for impact investments are as diverse as the investors who make those investments. Some examples of these types of investments include:

  • Affordable housing
  • Recycling
  • Green real estate
  • Energy efficiency
  • Sustainable consumer products
  • Healthcare innovation
  • Disruptive technology

How Can CLC Global Advisors Assist with Your Impact Investing?

At CLC Global Advisors, we are experienced with impact investing and have the knowledge and understanding to advise you on your investment needs. Whether you are in need of investors or seeking to invest in disruptive technology, commercial real estate, or healthcare innovation, we have the skill and insight to help you to make the wisest decision for your personal circumstances so that you can achieve your goals.

How Can Impact Investing Help Your Business?

If you are starting a new business or seeking to grow your existing business, impact investors are a great way to obtain the funding to make that happen. In order to qualify for financial support from impact investors, your business must be able to have a significant and measurable impact on society or the environment.

For example, if you have developed an agricultural technology that cuts the water usage of large-scale farming operations in half, you would qualify for financial support from impact investors. Your technology doesn’t just stand to “take off” and earn your investors’ considerable profits, but it also has a significant and measurable impact on global water usage and, in turn, the environment.

If, however, you have developed a new video gaming system that is designed simply as an alternative to current console systems and your system provides no benefit to society or the environment, you would not qualify for impact investments.

Just Because You Qualify For Impact Investments Doesn’t Mean You’ll Get Them

Now, it’s important to know that just because your product or business qualifies as a business that could receive investments from impact investors, it doesn’t necessarily mean that you will receive those investments. One of the more tricky aspects of impact investors is finding investors who are interested in your industry, your concepts, and you! Investors want to know where their money is going, what kind of impact it’s going to have, what kind of return their investment is going to bring, and who is managing that investment. Everything about that investment potential has to be just right for an investor to feel comfortable and this is where CLC Global Advisors comes in. With a large network of contacts, we have investors seeking to fund a wide range of industries and innovations and the ability to match you with one of those contacts who are interested in your proposal.

Are You Seeking an Advisor for Assistance With Your Impact Investing Goals?

If you’re seeking an advisor for assistance with making impact investments or seeking impact investments in your business, CLC Global Advisors can help. To find out how we can help, pick up the phone and dial 305-467-3432 today!