Investors are interested in startups with social impact because they have the potential to create positive change while generating financial returns. These companies aim to solve societal problems, such as poverty, lack of access to education or healthcare, and environmental degradation, while creating value for stakeholders.
Main categories
- Clean energy
- Affordable healthcare
- Education for underserved communities
- Access to clean water and sanitation
- Sustainable agriculture and food systems
Startups in the space
- D.light Design (provides affordable solar-powered products for households and small businesses in emerging markets)
- Konexa (develops and distributes low-cost mobile health technology for maternal and child health in rural areas)
- Bridge International Academies (provides affordable, high-quality primary education through a network of schools in low-income countries)
- Watsi (crowdfunds medical treatments for patients in need, particularly in developing countries)
- BrightFarms (builds and operates hydroponic farms in urban areas to provide fresh, local produce to communities).
VCs investing in social impact startups
- Impact Ventures
- DBL Partners
- Omidyar Network
- Khoros Investments
- Rethink Impact
The challenge for social impact startups is balancing financial returns with social impact. While these companies aim to create positive change in the world, they must also be financially sustainable in order to attract investment and grow. Investors must carefully evaluate the potential for financial returns and the level of impact a company is able to create in order to make informed investment decisions.