Viewpoint: Impact Investing Isn’t About Cash. It’s About Ecosystems
Friday, February 22, 2019
By George Tsiatis
I have worked with hundreds of college entrepreneurs for over a decade, and their No. 1 request for help is often about funding. I don’t blame them — money is scarce — but cash is the ultimate commodity. When we think about investing, it’s pretty mathematical: Money in hopefully leads to more money out. But impact investing has been changing that game.
Impact investors, while seeking good returns, also celebrate the relationships and support they can bring to bear. That said, the nomenclature around impact investing is inadequate because it’s not just about making connections when something is looking to grow; it’s about creating a robust ecosystem for those things to take root, grow and propagate. Impact investing starts before a dollar is invested, and I think it’s time for impact-focused organizations to adjust our language.
Photo courtesy of Pavel Ahmed.