Our generation thinks intensively about the social, environmental and economic impact of their labor. According to Financial Times research, one-third of the youngsters joining the workforce want to know where their effort goes to. In the times of immense ecological deprivation, increasing economic gap and downfall of social conditions in the developing work, businesses that benefit BoP (bottom of the pyramid) and close the technology hap between the developing and the developed world should get the most attention.
Social Venture Capital firms below not only increase the capacity of social entrepreneurs but also create profit for the donors. Social venture capital firms are not fixated on the financial return of the investment. Instead, they focus on the way start-ups spend the money and whom they benefit.
- Khosla Impact: Based in Bay Area, they invest in entrepreneurs who favor solving challenges through careful application of science and technology. Their portfolio includes Flutterwave, Smile Identity, and SunFunder.
- Social Venture Connection: This is an online platform that connects ethically minded investors with the right start-ups. Based in Toronto, all the products on their platform are Canadian private market securities. They focus on start-ups in the fields of clean technology, work and learning, health and wellness, food and social inclusion. SolarShare, Luck Iron Fish and Tecla are some of the examples.
- Kapor Capital – They invest in seed-stage companies committed to closing gaps of access to institutions and facilities. Based in Oakland, they favor start-ups that deliver to low-income communities and communities of color in the United States. BiWise Industries, Edovo and Five to Nine are some of the examples.
- ING Dreamstarts – They empower small businesses that tackle social issues to make a lasting contribution to their local communities. They are based in Australia. Team Timbuktu and Ahimsa Collective are two examples from their portfolio.
- Ananda Impact Ventures – They aim to fuel social change in Europe by focusing on areas such as Education, Health, Consumption and Ageing Population. Their portfolio includes Talea, Action for Children and Repositive.
Finding investors who value social impact as much as financial viability is crucial for companies who aim to do good. I think it’s safe to say that entrepreneurs today are more interested in solving problems that affect their families, health and the planet. Entrepreneurs are aware that to prosper over time they should make a positive contribution to society besides delivering high financial performance. Therefore, managing the flow of capital with an ethically minded mindset benefits both the investors and the beneficiaries.