Strategy & Portfolio
Impact Investing
Investing with the explicit intention of generating positive social or environmental impact alongside financial returns.
Impact investing is an approach to capital allocation that deliberately targets positive social, environmental, or community outcomes alongside financial returns. In venture capital, impact investing includes: climate tech (clean energy, carbon capture, sustainable agriculture), health equity (healthcare access in underserved communities), financial inclusion (tools for the unbanked), and education technology. Impact investors measure performance on dual dimensions: financial returns (IRR, TVPI) and impact metrics (CO2 avoided, people served, jobs created). Major impact-focused VC firms include DBL Partners, Obvious Ventures, and Closed Loop Partners. The challenge: demonstrating that impact objectives don't compromise financial returns — impact VCs increasingly argue they are complementary.