Why impact investing can combine profit and purpose

Why impact investing can combine profit and purpose

Over the last few years, it's been clear that venture capital investors are beginning to recognise that a return on investment and making a positive impact on the world don't need to be mutually exclusive. The false disconnect between profit and purpose is narrowing as entrepreneurs apply new technologies and create investment propositions capable of delivering both. You can make money and make a difference at the same time.

As the COVID-19 pandemic and the resulting economic downturn has created new realities for many, the global investment community is uniting to overcome the complexities of the pandemic. Due to the ongoing economic, human and financial institutional pressures the need for VCs to invest in creating a global impact has increased.

VCs and their portfolio companies are starting to see how they can play a vital role in improving society in a multitude of ways. Justin MacRae, COO of Fortunis Capital, commented recently that “in the current climate, consumer and investor demands are rapidly evolving and they see value in ethical investment in companies with purpose and salience”.

The pandemic forced many of us to self-reflect and to seriously consider what is important to us. Impact investing is at the forefront of what I