Impact Investment – the future of business funding.
With startups emerging now and then, investing in business has become a common
practice to facilitate these startups. However, no investment is consequence-free
for the investors or community and economy as well as the environment at large.
With the growing need to avoid adverse effects and abide by Corporate Social
Responsibility (CSR), investors are inclined towards Impact Investment. Impact
Investments are the investments made with a desire to generate positive social and
environmental impact along with gaining financial returns. We at Aspirelabs
believe in connecting with the impact investors who are ready to provide capital
for green startups.
Why Impact Investing?
Earlier it was considered that social and environmental issues are supposed to be
addressed by philanthropic donations, and market investment is supposed to focus
on achieving financial returns solely. However, what if they can be made
mutually? That is what impact investing is all about. Impact investors calculate the
rigorous analytics of traditional investment and mix it up with the heart of
philanthropy. In other words, impact investors aim to achieve a positive impact on
targeted social, economic and environmental goals, while seeking to achieve
higher financial returns.
Why is Impact Investment Important?
It is a common misconception that the businesses that aim to achieve double
benefits, i.e. good returns while being socially responsible, tend to fail in their
attempts. However, research has shown that what is good for the environment and
its people is always good for business.
That is why impact investors at Aspirelabs focus on 4 P’s of Impact Investing.
• Planet: Investing in a green business ensures that you are making an effort to
create a more sustainable environment with your business, which in turn makes
you a contributor for making Earth a healthier planet.
• People: When you are socially responsible and investing with impact, you’re
creating opportunities for other people to work with your cause of creating a better
• Purpose: In addition to earning financial returns, with impact investment, you
have a higher purpose or motive to achieve your desired goal rigorously.
• Profit: When all the above factors fall in place, the business is bound to reach
greater heights and earn higher profits.
Impact investment is a new concept in India that is gaining popularity rapidly.
Investors are recognizing its potential and are ready to invest in startup
opportunities such as Beam Money Private Limited and Disha Medical Services
(Drishti-Eye Centre). Aspirelabs aims to help such businesses, working towards a
cause, grow more and more in the times to come.