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Writer's pictureUgochi Obidiegwu

“Let’s Start at the Very Beginning”


Welcome to the ImpactVantage newsletter. 


I will start by answering frequently asked questions about this newsletter and why now.


What will this be about?

A reliable source for acquiring information and becoming "investible." 


Why?

To create a pipeline of investible businesses for impact investments and to increase access to resources for non-profits, social enterprises, and businesses with impact baked into their model. Some impact investors say they have difficulty finding businesses that meet their funding criteria. On the other hand, founders need funding to scale the impact of their work. There is a mismatch, and this is an attempt to help both founders and impact investors.


Who is this for?

This is primarily for impact-oriented founders from the global south. If you run a social enterprise, nonprofit, or business that has impact integrated into its model or plan to do so in the future, this will help you restructure your work so that you are “investible.”


What does being investible mean in this context?

In this context, an investible organization is an impact-oriented organization that demonstrates the capacity to generate both social and financial returns. Such an organization qualifies for impact investment. One of the major concerns of impact-oriented founders from the global south is funding because any sustainable impact is capital-intensive. But, funding exists. The challenge I have seen from observing on the investor side is that some founders have not been able to structure their operations in a sustainable way which can encourage impact investors to take that leap of faith in their direction. This is not because founders do not want to do this, but it’s because, many times founders are focused on solving the problems they are working on and do not address longevity and sustainability. Other times it’s because they are working with limited financial and non-financial resources, so when prioritization happens, sustainability falls through the cracks. And some other times, it’s simply because they do not know.


What is impact investment?

The Edengreen blog answers this in a simple and straightforward manner. “Impact investing represents a transformative shift in how we think about financial investments. It blends the aims of profit and purpose. It diverges significantly from traditional investment paradigms. It seeks financial return and aims to produce positive social and environmental outcomes. This dual-purpose approach addresses some of the most pressing global challenges we face today. These may include climate change, social inequality, and the need for sustainable development.” 


In other words, impact investment provides “patient capital” to produce positive social change and financial returns.


My organization gets grants, why should I reposition for impact investment?

In its 2022 report, the Global Impact Investing Network (GIIN) estimated that the size of the worldwide impact investing market was USD 1.164 trillionThe Brainy Insights estimates that the 2023 USD 3 trillion global impact investing market will reach USD 7.78 trillion in 2033.  In addition, the Impact Investing Global Market Report 2024 states that “the market size will grow from $478.15 billion in 2023 to $550.52 billion in 2024 at a compound annual growth rate (CAGR) of 15.1%. In the next few years, it will grow to $1061.14 billion in 2028 at a compound annual growth rate (CAGR) of 17.8%. The expansion anticipated in the forecast period can be linked to the transition to renewable energy, efforts towards racial and gender equity, global resilience planning, circular economy initiatives, and education and skill development.”


Why wouldn’t you want to tap into this funding? If your organization is doing work that contributes to the greater good and has the capacity to promise financial rewards, then you should reposition for impact investment.


What should we expect in each newsletter?

I will be presenting the concepts simply because I know you do not want complexity at this time. We will also have guest authors and interviews with experts. Each newsletter will feature a “something worth reading and listening to” section. We will also have a “highlighted resource” section because sometimes we all just need the tools and resources that can help us achieve our goals easily. On that note, if you offer a service or tool that can help founders on their journey to becoming investible while getting important tasks done, please fill out this Google form. It could be an impact measurement tool, an affordable accounting service, a marketing communication service, etc. These founders work with limited resources, so kindly consider affordable price points.


Why should you listen to what I have to say?

Over the years, I have worked on building my own social enterprise in Nigeria, trained African non-profit and social enterprise founders through organizations with ecosystems, conducted several strategy sessions for impact-oriented founders, and done some early-stage impact investing through the New York University (NYU) Impact Investment Fund (NIIF). In fact, my team represented NYU at the Turner MBA Impact Investing Network and Training (MIINT) global competition for our sourced company and won a $25,000 investment opportunity for them. We broke a record for NYU because this was the first time an NYU team made it to the top 3. I must also add that my Capstone team did a consulting project on impact measurement and management for the Impact Investment arm of a leading Foundation in New York.


Photo credit: Turner MIINT Competition

Doing all these has made me see the gaps and opportunities, and I have learned so much. As is my practice when I learn what can shorten the learning curve of others, I have decided to share with others in a simple but useable form. I don’t want you to make the same mistakes that I made. I want you to leave each newsletter armed with best practices you can start working on right away to become investible. As it is popularly said, the best time to plant a tree was 20 years ago, the next best time is now. Think of me as your thought partner as you navigate your journey - either as a newbie or someone who has been at this for a while but needs a better structure to tap into the impact funding, opening up more.


I will be honest and mention that I am biased towards female founders because I am concerned about the data that only 2% of female-led businesses have access to venture capital. Undoubtedly, there has been progress, but we still have a long way to go. You can find out more about me here.


I hope I have answered a few of your questions. In subsequent newsletters, we will build upon important concepts systematically. Feel free to share your questions and thoughts in the comments section. Beyond preparing your organization to receive impact investment, if you apply what you learn here, you will become more competitive. You can receive funding from individuals and organizations who are not necessarily impact investors but who seek sustainable businesses they can support as their way of contributing to the advancement of society. 


Welcome once again to ImpactVantage. Elevate your impact, maximize your vantage. Like, comment, share and subscribe. Thank you for reading.


Worth reading


Worth listening to


Highlighted Resource

Fill out this Google form. I can’t wait to start sharing the amazing tools I’ve found with you. 


PS: Are there topics you would like to see covered? Share them, and I will see how to add them to the existing content schedule. 

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