Final Project

1. Impact Investment
Natalia Orjuela
Photo: http://www.wexnerfoundation.org/blog/impact-investing-using-investment-capital-for-social-good

2. Introduction
Another possibilities to transform billions to
trillions is that institutional investors invest in
projects that will develop the infrastructure
of a developing country.
Private investors are main actors to pivot the
development agenda.
Lately, investors are not willing to invest in
those portfolios that negatively impact the
environment or the population.
Social responsible investment or impact
investment becomes a great solution to
respond to SDGs in a financial attractive
way.
Source: https://www.suntrust.com/Static/RC/Images/Featured/Socially_responsible_investing_PWM_704x343.jpg

3. What is Impact Investing?
Impact investments are investments in a company,
project, fund or organization which intend to
generate sustainable impact and financial returns
(social, environmental & economical).
Intentionality to have a
positive social impact
Several ranges of risk &
return
Investment with return
expectations
Measurement & reporting
ensured social compliance
Why the private sector
invests?
Source: https://www.marsdd.com/wp-content/uploads/2014/04/pod_impact_investing.jpg
Source: http://www.thegiin.org/impact-investing/need-to-know/#s1

4. In which zone is Impact Investment is
done?
Social profitabilityLow High
Economicalprofitability
Public &
social sector
Private Sector
Impact
Investment
Impact First
Investors
Financial
First
Investors
NGOs
Trading
Co.
Company
driven by
CSR
Venture Philanthropy
Impact
Investors
Source: Creas

5. How is their performance?
Source: The Giin: http://www.thegiin.org/impact-investing/need-to-know/#s5, last accessed 08/12/2015
According to Giin around 80% are in line with financial and impact expectations.
Business model is one of the biggest factors contributing to risk.

6. Which are the investment sectors?
Education Health Social Innovation
Renewable Energy Sustainable activities
“OpenIDEO is a global
community working
together to design solutions
for the world’s biggest
challenges.”
Sources:
http://www.oxfamblogs.org/fp2p/wp-content/uploads/South-Asian-education-pic.jpghttp://wwwdragonflies.files.wordpress.com/2011/07/african-healthcare.jpg
https://wwwdragonflies.files.wordpress.com/2011/07/african-healthcare.jpg
http://openideo.com
http://www.renewableenergyinstaller.co.uk/wp-content/uploads/2012/05/iStock_000016699748Medium.jpg
http://www.cccc.edu/news/storyImages/2009-06-24-1067183311.jpg

7. How is impact measured?
• Investments have to meet a determined criteria:
– Innovative Business Model with sustainable impact
– Scalable projects with development potential
• Then the following metrics are during the project
lifetime to measure the social impact:
– Number of beneficiaries reached
– Savings generated and the amount going to the poor
– External audits
– Sustainable KPIs (CO2 emissions, waste
management…)

8. Examples
Emzingo Villa Andina
• Investee: Emzingo
• Investor: Creas
• Country: Spain, Peru, South-Africa,
Brazil
• Description: Promote social
leadership by connecting business
students and workers with the social
sector and providing consulting
services to start-ups, NGO or social
companies.
• Impact:”100% of the projects
address UN millennial development
goals.”” 56 NPO/NGOs, social
enterprises, and community based
organizations supported “
• Investee: Villa Andina
• Investor: Grassroots Business Fund
• Country: Peru
• Description: Company that
purchases fruits from farmers, then
processes the product (dehydration)
and commercializes it locally and
internationally.
• Impact: 602 beneficiaries (farmers
and employees); 2408 families
benefit by earning over $1.3M.
Efficient crops. Enhance rural
development.
Source: http://www.villaandina.com/inside

9. Key Takeaways
Impact investment is a new way for the
private sector and social entrepreneurs to
develop sustainable project.
The main obstacles in developing impact
investment is the metrics and the scalability
of the projects. They can work for small
areas but in some cases cannot be
replicated, hence the impact is very low on
the development of the country.
Thanks to social impact funds and an
increasing know-how impact investing is a
stronger option for investors, mainly those
committed to Corporate Sustainable
Responsibility.

10. References
• EVPA - European Venture Philanthropy Association. http://evpa.eu.com/
• Creas. http://www.creas.org.es/inversiones-de-impacto/
• Multilateral Investment Fund. http://www.fomin.org/
• Acumen. http://acumen.org/
• Grassroots Business Fund. http://www.gbfund.org/
• Emzingo. http://emzingo.com
• From Billions to Trillions: Transforming Development Finance. IMF 2015
• The Giin. http://www.thegiin.org/impact-investing/need-to-know/#s1