According to Investopedia, in the simplist terms, "impact investing is investing that aims to generate specific beneficial social or environmental effects in addition to financial gain.” But shouldn't all investing have that impact?
Impact investing falls within the umbrella of Compassionate Capitalism because it also includes directing investment dollars to bring innovation to market, create jobs, and produce wealth by investing in the entrepreneurs to provide the capital they need to start and grow their businesses. Impact Investing narrows the focus within that umbrella to solve specific social problems in a sustainable manner, such as the education gap, or poverty, or community sustainability issues such as clean water and clean energy.
On this Compassionate Capitalist Podcast episode, Karen Rands is joined by Shannon Mudd, Dir of Microfinance, Impact Investing, Social Entrepreneurial Programs; Visiting Assistant Professor of Economics at Haverford College in Pennsylvania. Shannon has a rich history in microfinance, a passion for directing investment dollars to have the greatest impact on economy and the local community to benefit society at large. As a member of the Leadership Committee at Social Venture Circle, he works with other Angel Impact Investors to structure their investment portfolios, in partnership with foundation funds, into early stage social enterprises that are expected to generate both a positive return and have a social/environmental impact. Learn More
Karen Rands is the best selling author of Inside Secrets to Angel Investing, the recognized best primer for those considering adding angel impact investing to their portfolio.