Impact Investing is conscience investing. It’s when an investor invests in a way to purposefully make a positive difference, socially or environmentally. It’s an exciting and revolutionary way of looking at investing. And one of the ways, investors are practicing Impact Investing is by investing in female start-ups, not just in their country, but also around the world.
For example, Ellevest, founded by Sallie Krawcheck, is an investment platform that is revolving around the concept:
“Investing by Women, Investing In Women – Ellevest Impact Portfolios help you reach your goals by investing up to half of your portfolio in companies that power positive social change by advancing women.”
This idea is based on the fact that despite the number of women with college degrees or great business ideas, there is a low percentage of women in comparison to men starting their own businesses. The problem is women have historically had a harder time than men finding backers. Fortunately, this is changing. In the last decade, start-up investment in women-led companies increased by 20+ percent.
Investing in women start-ups or businesses run by women is also considered Impact Investing because it is believed that by improving the financial and professional status of women in a country, we improve it. For example, according to USAID: “countries where women’s share of seats in political bodies is greater than 30% are more inclusive, egalitarian, and democratic.” [Why Invest in Women?] Below, we’ve posted a few videos to better explain the concept.
Bill and Melinda Gates Foundation co-chair and co-founder Melinda Gates sits down with CNBC’s Becky Quick on creating networks for women, investing in female entrepreneurship and the global health crisis. Subscribe to CNBC: http://cnb.cx/SubscribeCNBC
Bill and Melinda Gates Foundation co-chair and co-founder Melinda Gates sits down with CNBC’s Becky Quick on creating networks for women, investing in female entrepreneurship and the global health crisis. Know more: http://wrld.bg/p88j30dxvGv