‘Why Measuring Social Impact Matters to Investors’ – Entrepreneur
Josh Cohen says, “The impact investing sector has grown substantially since the term was first coined in 2007. The practice refers to investing in companies — directly or indirectly through funds — with the intent to generate a measurable, social impact alongside a financial return. Measurability is a key component, because it can be hard to differentiate impact investments from other investments without proper data.
As impact investors, we at City Light Capital measure both the financial performance and the social impact of all of our portfolio companies. We identify and partner with entrepreneurs who build companies designed to have an impact, are committed to measuring that impact and are willing to hold themselves and their respective companies accountable if the data suggests their solutions are not positively moving the needle.
When we began capturing impact data 10 years ago, many of our portfolio companies agreed to quantify, monitor and measure their impact. We have since learned that the practice of consistently measuring a companies’ social impact can meaningfully contribute to its value”.
Comments are closed.
