EBAN is delighted to release its new White Paper about European early stage impact investing. Early stage impact investing is investing in for-profit businesses that have the specific objective of creating positive social and environmental impact the way business is conducted and/or the products realized. This White Paper explores this emerging sector, why it is interesting for early stage investors, how they can get involved and what EBAN will do to support its development.
Early stage impact investing is investing in for profit businesses that have the specific ob- jective of creating positive social and envi- ronmental impact, in the way the business is conducted and/or the products are realised.
The market is very young and it still in a diverse and nascent stage, which makes measurement of its size difficult. Eurosif, which has been collect- ing data on this market since 2007, predicts that the share of impact investing of high net worth individuals’ portfolio will grow from 11% to 15% by 2013. EBAN will publish its first data on this sector in 2011.
EBAN believes that early stage Impact Investing should and is poised for growth since:
There is growing evidence that investors can do well and do good at the same time. This is at- tracting the interest of younger generations of investors, women and family offices. This will grow the business angel investing sector as a whole.
There is an increasing need for sustainable business and consumer behaviour. This is cre- ating new opportunities for impact entrepre- neurs which will require financing, especially from the private sector as government support diminishes. Other public and private players in the ecosys- tem are becoming active in this area, creating opportunities and needs for collaboration.