Photo by Gracia Chua
What is impact investing?
The sector has made considerable strides since its formation in the late 20th-early 21st century. The Global Impact Investor Network (GIIN) estimates the market size in 2017 is USD$114 billion, growing from USD$46 billion in 2014. Investors of all kinds are engaging in impact investing - from Wall Street banks, Silicon Valley VCs, to smaller community banks and credit unions.
Just as energy is transitioning towards becoming "clean", so is money. Impact investing has emerged in the 21st century as a new way of thinking about finance and charity. Unlike traditional finance's philosophy of investing solely for financial returns, impact investing intentionally makes decisions based on the potential social and environmental impact. Unlike traditional philanthropy, impact investing doesn't only grant money, investors ask for a financial return as well.
Building the market in Canada.
The Impact Investment Forum (IIF) intends to build the Canadian impact investing community by showcasing the thought leadership of Canadian experts. Through curated reading lists and a comprehensive research catalogue, it will also educate those who are unfamiliar with the concept. IIF is non-partisan and seeks to give an equal voice to all impact investing organizations in Canada.
The Impact Investment Forum is intended to continue building the impact investing market in Canada. Like the UK and the USA, Canada's social finance market has developed substantially through a vibrant social enterprise community, active impact investments, and a supportive federal government.
Impact Investment Forum is powered by UBC Sauder Centre for Social Innovation & Impact Investing.
Just launched! Social Venture Impact Investing: the Canadian Landscape
Private debt and private equity remain the most common types of impact investments both globally and in Canada. Our latest report looks at the market dynamics of social venture impact investing. Based on our database of social ventures in Canada, we found a minimum of $159M annual investment demand from early-stage social ventures ($48M if we exclude Series A funding). We identify a major funding gap for ventures at the “transition pre-seed” stage. At the same time, 73% of investors studied indicated a commitment to developing their impact investment practice.
How might the social innovation and social finance community best serve these social ventures? Read our report here.
Sign up here to get updates whenever a new report or reading list is published.