Ten characteristics of an investor for impact
What does investing for impact actually mean? How does such an investor behave, and what principles do they live by?
The European Venture Philanthropy Association has attempted to answer that question with its new Charter of Investors for Impact – a first attempt to distinguish those investors that put social purpose organisations at the centre of their investments, from those that need to guarantee a certain financial return on their investments alongside the impact returns.
Signed by more than 250 individuals to date, the new document sets out 10 principles that define investors for impact, aiming to help clarify what they can and cannot deliver and ensure they are better positioned to collaborate with others, bring newcomers on board and continually improve how they work.
EVPA CEO Steven Serneels explains the thinking behind the blueprint:
Below, Anne Holm Rannaleet, executive director and trustee at IKARE in Sweden, explains what it means to be ‘highly engaged for the long-term, striving for lasting impact’ (principle 3):
Next, hear from Harvey Koh, managing director at FSG, who talks about principle 7: tailoring financial support to the needs and characteristics of social purpose organisations.
Finally, we spoke to Hedda Pahlson-Moller, founder and CEO of Luxembourg-based TIIME, who told us why encouraging others to mobilise resources is a key feature of an investor for impact (principle 9).
Find out more about all 10 principles of the Charter of Investors for Impact.