How to Find the Right Impact Investor. Galileo Impact Stories # 44. - YouTube

Hi friends. A lot of people ask the question: how to find impact investor for

my startup or social venture? The field of impact investing is rapidly growing

up to 500 billion dollars in 2019. You can easily attract investments in such

industries as clean energy, agriculture, food, education, health care and similar.

Impact investing is a strategy of investing in enterprises that seek to

create financial returns and measurable social or environmental impact. Here are

five tips how to find the right impact investor.

First, you have to determine what kind of investment you are looking for. The range

of impact investors is growing and some of them provide capital, some make loans

with grants, others work as venture philanthropists. Getting familiar with

the different types of investors will help you target the ones that can help

you the most. There are a lot of different types of hymnbook investors

before approaching potential investors it's vital that you do your homework

first, and understanding as much as you can about your prospects to ensure a

good fit. Don't forget about other forms of investment like technical knowledge, contacts or advice.

There are a lot of impact investing conferences which are

the best way to learn about and meet potential investors. If you can't visit

them in person then search in special databases. You can begin your search by

visiting the Global Impact Investing Network website. GIIN offers a searchable

database of impact investment funds. You can also find impact investors

using tools such as Crunchbase and Angellist. As usually all links you will find under this video.

In the world of impact investment, impact measurement is as important as a financial return. So you

have to have answers on two main questions: how you will make your startup

profitable and how you will measure social or environmental impact.

Unfortunately, I can't give you an answer to the first question because it depends

on your business model, but I can help with another. You can use the IRIS system for

measuring, managing and optimizing impact. This standardized system offers a broad

range of metrics that can be adapted to suit the needs of your startup.

The pitch deck is a presentation that entrepreneurs put together one second

round of financing from investors. On average pitch deck have no more than

twelve slides. In essence, the three keys to powerful pitch deck that gets funded

are: clear and simple, compelling, easy to act on. Note that according to

researchers investors spend on average less than four minutes per pitch deck

focusing the slides concerning financials, team and competition. If you

want to know more about pitch deck write mean comments and I will make a special release about it.

You should be prepared to discuss with the impact investor what

are your expectations around the role that your investor would play. Typically an

impact investor would take energy stake but he would expect especially at an

early stage to have decent involved in the business - what is called affirmative

rights so you know having some influence on the decision a company makes as well

as having board representation. So it's good for you as an entrepreneur going

into that meeting to at least know how you feel about those things and to be

aware of those things. When dealing with

potential investors, you should always be ready for a two-way dialogue. Be prepared

to face strong views, even criticism about your venture. Always be open to

negotiation or compromise and if they say no, don't get upset and walk away.

Instead, thank them for their time and ask if you can keep them updated about

your progress. While they may be not interested now they may want to come on

board later on. Well, that's all for today, thank you for your questions and

feedback, see you next Monday and bye have a nice day.