Thanks to millennials, there is an overwhelming push to invest responsibly.
Impact investing can be defined as investing in companies that “do well by doing good”.
We talk about this concept here at VIC!
What we’re saying, however, is that you need to think critically about the companies that will make the world better (however you define better).
You better think critically!
Research the vegan companies you are interested in! It’s not enough to like their name. You should want to know about how the company came to be, where they want to go, what their vision of the world is. Ask yourself specific questions to get clear on your potential investment.
What are the expected benefits from this startup’s business? How will it positively impact its community? How will they use my money?
Don’t stop there though. You’ll want to consider it’s “additionality”. Additionality plays into the concept of “yes, and…” For example, yes, this company I support is vegan, and it uses its funds to pay its employees above market rate. Impact investing is about searching for companies that go above and beyond the status quo or abdicate from the status quo altogether to create a company founded on principles that will positively impact humans, animals, the planet, or all three.
If you only invest in a startup when it has the best-expected returns, you might not be the impact investor you once thought you were. The companies that are creating the world we want to see, usually have below market expected returns, initially. But that’s okay, because when you plan long-term you factor this into your investment strategy.
Ask yourself these questions, what makes this startup different? And, is this business impactful enough for me to wait a little longer for my financial return?
As a vegan or vegan-adjacent person, impact investments might be your thing.
Do your homework and consider the big picture, the one where animals and humans live peacefully. Then, invest.