Impact investing report

Abstract

Impact investors face two distinct challenges: they must find companies with enterprise impact and achieve additionality. The first challenge is difficult in part because the path from action to social impact is often not as expected due to external factors. The second challenge is difficult because socially neutral investors can offset any efforts to affect stock prices. Even in VC and angel investing, the risk of merely displacing someone else’s investment remains. For these reasons, for people aiming to have maximal social impact, impact investing is likely to be the best approach only in specific circumstances. – AI-generated abstract.