So­cial Im­pact In­vest­ing: How to get Started

Silicon Luxembourg - - INNOVATION - HEDDA PAHLSON-MOLLER

HEDDA PAHLSON-MOLLER IS AN IN­TER­NA­TIONAL IM­PACT IN­VESTOR AND CO-FOUNDER AND CHIEF CAT­A­LYST OF TIIME, AN IM­PACT AD­VI­SORY AND AD­VO­CACY OR­GA­NI­ZA­TION. SHE IN­VESTS PRI­VATELY AS A BUSI­NESS AN­GEL AND SITS ON THE BOARDS OF SEV­ERAL AN­GEL FUNDS AND NET­WORKS. SHE IS A VO­CAL PRO­PO­NENT OF DI­VER­SITY AND GENDER COMPLEMENTARITY THROUGH EQUILI­BRE.LU.

In­vest­ment ac­tiv­ity, par­tic­u­larly early-stage in­vest­ing, has con­sid­er­able risk and you should be aware of all pos­si­ble out­comes – in­clud­ing los­ing your money, your time… and more. De­press­ing dis­claimer aside, all in­vest­ments have a risk/re­turn ra­tio – and the risk is higher when it comes to early stage in­vest­ing but so is the re­ward!

In terms of con­crete sug­ges­tions for new­com­ers to the im­pact in­vest­ment scene, I would rec­om­mend to first ex­plore ar­eas of so­cial/en­vi­ron­men­tal im­pact that res­onate with them per­son­ally. The joy of early-stage in­vest­ing is be­ing part of value cre­ation from the ground up – be­ing part of the jour­ney. The ad­ven­ture! Hav­ing a per­sonal con­nec­tion to the project and its pur­pose and mis­sion will make the in­vest­ment and en­gage­ment even more mean­ing­ful. And ob­vi­ously the re­la­tion­ship with the en­tre­pre­neur is crit­i­cal at this early stage - you in­vest in the team and their vi­sion more than any­thing else.

Im­pact in­vest­ing is value cre­ation well be­yond fi­nan­cial. The fun­da­men­tals of im­pact in­vest­ing are based on the same prin­ci­ple of man­ag­ing re­turns, but we also in­cor­po­rate so­cial and en­vi­ron­men­tal im­pact in­ten­tion­ally (by de­sign, not de­fault). Ba­si­cally, you are in­clud­ing an ad­di­tional di­men­sion to your risk and re­turn ap­proach.

It is ex­hil­a­rat­ing and re­ward­ing to help in­vestors and en­trepreneurs alike un­der­stand that they can com­bine mea­sur­able pos­i­tive im­pact while ap­ply­ing prof­itable in­vest­ment and busi­ness strate­gies. We en­cour­age busi­ness an­gels to look at their in­vest­ment strate­gies, add im­pact re­turn cri­te­ria, and truly earn their wings.

Newspapers in English

Newspapers from Belgium

© PressReader. All rights reserved.