Elizabeth Funk discusses the emerging field of impact investing and why it's so important.

1. What is Impact
Investing?
BY ELIZABETH FUNK
www.elizabethfunk.info

2. IMPACT INVESTING
It’s been long believed that donating to various charities was the only way
to make any kind of positive social or environmental impact. Impact
investing challenges that belief by putting capital power behind social
businesses. These investments are often into projects that many
traditional business models ignore.
Marketing Determinents
Elizabeth Funk

3. Creative Strategy
Impact investments are “investments made into companies, organizations, and
funds with the intention to generate social and environmental impact alongside
a financial return.” These investments can be made into both developed and
emerging markets. Impact investing is for-profit investing in social businesses
working towards solving the world’s problems.
IMPACT INVESTING Elizabeth Funk

4. Core
Characteristics
There are four core characteristics of impact
investing: intentionality, an investment with
return expectations, the range of return
expectations and asset classes, and impact
measurement.

5. Intentionality is the intention of an investor to make a positive social or environmental
change. Investment with return expectations means the investment is expected to at
minimum return the invested capital, or generate a return on the investment. The range
of return expectations and asset classes refers to the fact that these investments
target financial returns that range from below market value to market value, and can
be made across different types of assets, including cash equivalents, private equity
and venture capital. Impact measurement means the investor makes a commitment to
measure and report the progress and performance of the investment.
IMPACT INVESTING Elizabeth Funk

6. IMPACT INVESTING
There are a variety of reasons why people would get involved with impact
investing. Banks and financial advisors often suggest impact investing to
people or organizations with interest in particular social causes.
Why Get Involved?
Elizabeth Funk

7. Market Growth
While impact investing is still relatively new, the market has significant potential
from growth. The GIIN’s 2018 Annual Impact Investor Survey collected data
from 225 respondents and they reported investing $35.5 billion into 11,136
deals in 2017. In 2018, those 225 respondents stated they plan to increase the
amount of capital invested by 8 percent and the number of deals they invest in
by 5 percent.
In the same study, 82 percent of respondents reported that their investments
met their impact expectations and 76 percent reported the investment met their
financial expectations.
IMPACT INVESTING Elizabeth Funk

8. Future Potential
Though impact investing is still a small market,
it’s rapidly growing and shows promise to
continue expanding as more businesses and
individuals realize the value.

9. Thank you.
VISIT ELIZABETHFUNK.INFO FOR MORE ON IMPACT INVESTING