When people think of investing, they often picture Wall Street and the stock market. However, there is an up-and-coming phenomenon known as impact investing. Impact investing is when investors invest their money in social enterprises that promise both positive financial and social impacts. Investors are able to make a great return on their investment (ROI) because they have the opportunity to make money while enabling a company to thrive and help those in need.
Many investors and venture capitalists are beginning to see the significant benefits of impact investing and are expanding their portfolios to include companies that make a social impact. For example, prominent businessman Sir Ronald Cohen founded Bridges Ventures, a fund managing company that looks to deliver benefits to both investors and society. Real estate mogul Bobby Turner and retired tennis star Andre Agassi have teamed up with investors to create charter schools for children across the country. There are many other examples of people who have invested in companies, foundations, and organizations that aim to make a social impact.
The field of social impact investing is a great way to combine financial gains with making a positive impact on society.