|
I am excited to launch this discussion/blog site to expand my knowledge about Impact Investing, its origins, intent and practical implications. I hope that this site will help to foster discourse amongst both experienced industry professionals and people merely interested in this topic. I am particularly interested in how the concept of "ethics" applies in the space of impact investing. A majority of the current discourse seems to take the fact that impact investing is ethically superior to traditional "profit-motivated" investing. Please help me dig into this preconception a bit more. Let's consider unintended consequences of impact investing. Does impact investing promote inefficient allocation of capital? Does impact investing (from developed nation funds to developing nations) create another potential for exploitation of the bottom of the so-called social/economic pyramid (sending the vast majorty of profits from developing nations' entrepreneurs to western investors). Are there other implications to consider? All of these issues and more will be tackled in this blog and resulting scholarship that I am working on surrounding this issue. Thanks for participating!
1 Comment
Nick Rodrigues
10/6/2013 10:52:06 am
I think you bring up some very interesting topics. This was a main topic I discussed when I was in EA this summer. Coincidentally, there were two main opinions that people took that closely aligned with their personal backgrounds/culture. When I was talking with local investors they thought that "impact" investing was almost like an ethnocentric fad - aligning to some of the points. Their basic claim, (something that I tend to agree with) is that "impact" investing in frontier markets should be treated the same as "early stage" investing in developed markets. Both genres are high risk, high reward, but the startups and business models of early stage and impact investors are very similar - speculation on potential. Take a look at Savannah Fund - I met the MD a couple of times and I think he's pretty spot on with some of his opinions. One of his quotes really stuck with me, "I don't let anyone invest in my fund if they have not visited Africa." Leave a Reply. |