Impact Investing

Green tech investors want to put their money behind firms with the potential to disrupt their industries and bring both positive environmental impacts and financial success. But what’s disruptive is by its nature unprecedented and unpredictable. How do investors assess the potential of a green technology company?

Impact investing, a growing niche in finance, seeks to marry strong financial returns with positive social impacts. That can mean investing in companies whose products improve the environment, or it can mean helping a startup find ways to positively contribute to the neighborhood where it’s based. Nancy Pfund ’82, founder and managing partner of DBL Investors, talks about the growth of the sector.

Professor Rodrigo Canales discusses his research into the trade-offs inherent in social enterprises and argues that people interested in the field should pay closer attention to the challenges of achieving both social good and market success.

Solving problems at the intersection of business and society may pay dividends for a small Bay Area venture capital firm.

Why is a venture capital firm encouraging the employees in a company it funds to give free music lessons? They’re trying to prove the thesis that companies that engage with their communities also reap a business advantage.

Two decades ago, socially motivated investing accounted for a tiny percentage of worldwide capital. Today, investors representing $14 trillion have signed on to the UN’s Principles for Responsible Investing. What influence are they having?