Week 2 Flashcards
(25 cards)
What are the keu factors that underlie the business model of OpenInvest?
Similarities with TalkToLoop; 1. vision; creatingn impact through investments aligned with social and environmental goals, uses technology for accessibility and transparency. 2. impact creation; -direct channels, transparency in reporting. 3. client centric approach, customized and engagement.
How does OpenInvest create impact?
Through specific channels and by generating potential social and environmetal benefits.
What framework did Busch et al. (2021) provide for defining impact investments?
Seperating impact-aligned investments from impact-generating investments with specific strategies for each.
What are the types of strategies for impact-generating investments according to Busch et al. (2021)?
Providing additional capital, focusing on firms with forward-looking targets, and utilizing post-investment decision approaches like voting engagement.
What are some potential determinants of the intensity of due diligence?
In-depth level for large seed-round equity stakes versus small and short -term loans.
What are the benefits of investing directly into companies compared to investing in funds?
Direct impact on company operations, potential for higher returns, and greater influence over social outcomes.
What are the risks of investing directly into companies?
Higher risk due to company specific issues and less diversification compared to fund investments.
What are the benefits of investing in funds compared to directly into companies?
Diversification of investments, professional management, and potentially lower risk.
What are the challenges of measuring impact in impact investing?
QUantifying social and environmental benefits, attributing outcomes to investments, and ensuring long-term impact.
How can investors balance financial returns with social impact?
Through careful due diligence, setting clear impact goals, and choosing investments that align with bith financial and social objectives.
What role does impact investing play in addressing social and environmental challenges?
It mobilizes private capital to fund solutions that generate both financial returns and positive social outcomes.
What is the significance of SDG alignment in impact investing?
Aligning investments with the Sustainable Development Goals helps ensure that investments contribute to global priorities for susttainable development.
What is the importance of transparency in impact investing?
Ensuring that investors and stakeholders can track and verify the social and environmental impact of investments.
How can technology support impact investing?
By providing tools for tracking impact, analyzing data, and improving the efficiency and effectiveness of investments.
What are the key components of a successful impact investment strategy?
Clear impact goals, robust due diligence, ongoing monitoring and evaluation, and transparency.
What is the role of collaboration in impact investing?
Working with governments, NGO’s and other stakeholders to maximize impact and leverage additional resources.
What are some examples of succesful impact investments?
Microfinance institutions, renewable energy projects, and social enterprises addressing health and education.
How does impact investing differ from traditional investing?
It focuses on generating positive social and environmental impact alongside financial returns, rather than solely maximizing financial gains.
What are some common challenges faced by impact investors?
Measuring impact, balancing returns with impact and finding suitable investment opportunities.
What is the role of due diligence in impact investing?
Assessing the viability, risk and potential impact of investment opportunities.
How can impact investors mitigate risks?
Through diversification, careful due diligence and ongoing monitoring and evaluation of investments.
What are the potential benefits of impact investing for investors?
Financial returns, positive social and environmental impact, and alignment with personal or organization values.
What are some key metrics used to measure impact?
Number of beneficiaries, environmental benefits, ans social outcomes achieved.
How can impact investing contribute to sustainable development?
By funding projects and eneterprises that address key social and environmental challenges in line with the Sustainable Development Goals.
