NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, August 7, 2019

By Kjartan Rist

From driving a hybrid car to buying from ethical brands, or meticulously separating your recycling, we’re all thinking about how we can have a more positive impact on the world we live in. And it is no different with investors.

Recent research shows that more than one in three family offices now engages with sustainable–or Environmental, Social and Governance (ESG)–investing, with a view to putting their money into something “good.” This kind of “impact investing” is growing at a phenomenal pace, with over half of family offices planning to increase their sustainable investments over the next year.

But as I’ve argued previously, investing in specialist impact funds isn’t the only way of doing something meaningful with your money, as venture capital has long been making a positive impact in its own right.

Photo courtesy of Márcio Cabral de Moura.