How Impact Consulting Can Help Founders Access Funds

There are a few things business owners should do if they plan on raising funds through impact investing. Impact investors want to know how your institution measures impact before they can invest. There may not be a clear expectation of the response. However, investors will want some guarantee that the company they are investing in is doing something to track impact. Investors may require you to report and track impact as well as financials depending on the development stage of your corporation. Founders who are ready to respond using analytics and data stand a better chance at social investment funds. The companies under the portfolio of ImpactableX report raising funds through impact investing within a year of social impact consulting. Our team may be holding the key to external funds and growth for your institution. Business owners should position their entities for success by aligning their metrics with the globally accepted standards.

There are global standards designed to homogenize how everyone measures impact. The United Nations Sustainable Development Goals (SDGs), IRIS+, and IMP (Impact Management Projects) outline the standards of measurement. Impact metrics don’t have to be directly derived from the standards. You shouldn’t measure anything that provides meaningless data. Metrics should be measurable and meaningful. Afterward, the metrics should be aligned with the global standards. It is okay if the metrics match perfectly. It is also fine if they don’t. Business owners should identify two to four measurement metrics to underscore the primary value proposition. Investors don’t expect monumental innovations. Often, they only track a single metric during the time of investment. We should measure the units that matter the most.

Founders articulate time savings, cost savings, and enhanced performance derived from innovation. Similarly, you should measure the extent to which impact performance provides solutions to problems. It is fundamental when accessing impact investment funds. Identify the resources and people impacted through the environmental or social problem addressed through your innovation. Relative numbers are more useful than abstract ones. Impact entails material change uniquely attributed to innovation. The impact is the change created through innovation. Make investors see the value of your innovations so that they can invest. Investors may not have the same level of expertise you do. Make your intention clear to them.