Philanthropy in Investing: Insights on Social Impact Investing

There have been countless efforts done by concerned sectors to create the world we’d want our future generations to live in. Today, tackling the most pressing social issues are done in the most innovative ways possible – thru scaling social impact. Government agencies, big corporations, and angel investors and funding groups like Brian Gaister Pennington Partners and Big Idea CONNECTpreneur (read about their vision here – http://connectpreneur.org/host) today have started to adapt and finance companies that can scale on social impact massively based on their innovative technology while generating financial returns at the same time.

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This article explores how philanthropy thru social impact investing creates an ideal world thru creating opportunities for passionate entrepreneurs:

Social Impact Investing’s Main Definition

Impact Investing was first coined in 2007 and has developed as a practice over the years with reducing the negative connotations of capitalism on the social environment as their goal in mind. Some related social impact investing as an extended effort in philanthropy.

Social impact investing is capitalizing in pioneering businesses that aim to produce particular valuable social or environmental effects apart from financial gain. Social impact investing is a subcategory of Socially Responsible Investing or SRI. Social impact investing dynamically pursues making a positive impact by investing and capitalization in pioneering non-profits that have business pitches that generally benefit their particular causes, their local community, the environment, and other noble causes.

How It Works

The Corporate Social Responsibility or CSR of a company is highlighted when it comes to social impact investing. The drive to positively serve society and the sense of duty of a business pitch is mostly being considered by angel investors and funding groups like Brian Gaister Pennington Partners and Big Idea CONNECTpreneur (read about their vision here – http://connectpreneur.org/host). Visit their webpage at Brian Gaister

Big Idea CONNECTpreneur

One of the leading angel and venture capital investment groups today is CONNECTpreneur Investor Network, comprised of 20 proven investors like Brian Gaister Pennington Partners and keen on discovering pioneering investment opportunities that uphold social impact as a business goal. This informal network of investors conducts due diligence on pioneering business pitches with social impact in mind. They will be having a CONNECTpreneur Fall Forum at the Hyatt Regency Bethesda, MD this September. Watch out for more updates on their forums on their website at http://connectpreneur.org/host.

What Investors Look For

Normally, these capital and investment vehicles and investors like financial service companies, web-based investment platforms, and investor networks look at the overall vision of the business. Usual goals normally associated with social impact investing is giving back to the community by serving the poor population or investing in sustainable energy-saving technology.

How Investors Actually Measure Social Impact

It is a widely acclaimed fact that social impact can benefit corporate organizations make improved choices, convey their values, and get financial yields while balancing out the social returns. However, the methodologies that investors essentially utilize to measure social impact continue to be theoretical in nature. Ivy So and Alina S. Capanyola published their study from Harvard Business School in 2015 about a systematic look at the impact measurement practices of the current leading impact investors. Through interviewing more than 20 of the leading social impact investors such as Acumen, Root Capital, and Bridges Ventures, they discovered that investors utilize social impact measurements for varied intentions in diverse parts of their own investment cycle and that they fluctuate based on the financial and social goals set. They developed 4 main phases for these specific objectives (read more on this study here – https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact). Check more information at http://connectpreneur.org/host

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